China's Massive Stimulus Package

China's recent stimulus measures amount to approximately 7.5 trillion yuan, equivalent to about $1.07 trillion, reflecting a significant 6% of its GDP. This stimulus aims to tackle various economic challenges, including a sluggish growth rate fueled by a faltering real estate sector and high youth unemployment. The government plans to provide capital support to state banks, issue bonds for local government spending, and offer subsidies to low-income households. Despite these efforts, financial markets have not yet reacted positively, possibly due to uncertainty regarding the intended outcomes of the stimulus.