China stimulus lies behind a Great Wall of assets

China's Fiscal Strategy: Despite high debt levels, China plans to increase its budget deficit to 4% of GDP and may reach an actual deficit of 9.9% by leveraging state assets to stimulate the economy amidst slowing growth and external trade pressures.

Asset Management Approach: Chinese officials are shifting focus from just liabilities to include government assets in fiscal discussions, suggesting potential strategies like using state assets as collateral for loans and increasing dividends from state-owned enterprises to improve financial stability.