China is expected to unveil a huge package of measures to help its struggling economy as officials wrap up a key meeting over the possibility of heightened trade tensions with US President-elect Donald Trump.
Economists predict Beijing will approve hundreds of billions of dollars in aid, focusing on indebted local governments as well as cash for banks to write off non-performing loans.
Politicians watched the US vote as they gathered in the Chinese capital this week for a meeting of the country's top legislature.
During his campaign, Trump promised punitive tariffs on Chinese goods that threaten to further embitter the world's second-largest economy, which is already struggling with a prolonged housing crisis and sluggish consumption.
Observers say Beijing may try to soften that blow with a long-awaited "bazooka" economic stimulus - though they warn the details could take more time.
The meeting, which was originally scheduled for late October, may have been postponed to give "policymakers a chance to deal with a possible Trump victory," said Lin Song, chief Greater China economist at ING.
"In our view, the chances of a larger package of policy support measures will increase somewhat with a Trump victory," he added.
Trump's victory "is not necessarily bad for China as it could 'push' Beijing for bigger incentives," said Qi Wang, chief information officer of UOB Kay Hian Wealth Management, at X.
This week, state media reported that officials were reviewing a bill to raise local governments' debt ceilings.
The move, rumored last month, would allow authorities to borrow more to finance the acquisition of unused land for development, a move aimed at pulling the property market out of a prolonged slump.
In September, Beijing began unveiling a series of measures aimed at boosting economic activity, including cutting interest rates and easing some restrictions on home purchases, but analysts have expressed dissatisfaction with the lack of details so far.
Trump's re-election warrants greater urgency, experts argue, though caution may yet prevail as officials try to avoid piling on more government debt.
"Any potential amount of stimulus could be larger, but the pressure is also greater," said Gary Ng, senior economist at Natixis.
"The market still may not get the economic stimulus it wants," he warned. | BGNES
