China to hash out major stimulus plan this week

China's top lawmakers gathered on Monday to hash out a major stimulus package that analysts say could grow even bigger if former U.S. president Donald Trump wins the White House this week.

Beijing has in recent months heeded calls to step up support for the economy after years of inaction, announcing a raft of measures including rate cuts and the easing of some home buying restrictions.

But they have refrained from unveiling a figure for the long-awaited stimulus, disappointing investors.

Analysts now hope this number could emerge from this week's meeting of the Standing Committee of National People's Congress.

"We are expecting more details on the proposals to be passed," said Heron Lim of Moody's Analytics, including "how this extra funding would be allocated to address the near-term economic issues."

Nomura economists expect lawmakers this week to approve around a trillion yuan ($140 billion) in extra budget, mostly for indebted local governments.

Concrete measures are expected to be announced when the meeting wraps up on Nov. 8., in time for Beijing to take stock of results of presidential elections in the United States.

Both candidates in the race have pledged to get tougher on Beijing, with Trump promising tariffs of 60 percent on all Chinese goods coming into the country.

Nomura economists expect Beijing to adjust the size of its stimulus depending on the outcome.

"In our view, the size of China's fiscal stimulus package would be around 10 to 20 percent bigger under a Trump win than under the scenario of a (Kamala) Harris win," they said.