China announces $1.4 trillion package over five years to tackle local governments' 'hidden' debt

China announced a 10 trillion yuan package over five years to address local government debt issues, with plans to expand deficit space next year. The program includes additional debt limits for local governments, special bond issuances, and aims to reduce hidden debt significantly by 2028. While the measures were seen as a positive shift in economic policy, they fell short of investor expectations for more direct fiscal support, leading to a decline in the iShares China Large-Cap ETF.

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