China is boosting market sentiment by playing up hopes for stimulus [Video]

China is playing up its economy as the US heads to the polls in a closely watched presidential election.

On Tuesday, Chinese Premier Li Qiang touted his country’s economy, saying he’s confident of hitting its GDP growth target of around 5% this year, according to state media.

He also drummed up market expectations for more economic stimulus, saying Beijing has “ample space for fiscal policy and monetary policy.”

Li’s remarks came just as the Purchasing Managers’ Index survey from Caixin and S&P Global showed October services activity in China expanded at its fastest pace in three months. Business confidence also rose to the highest level since May, the private-sector survey showed.

Wang Zhe, a senior economist at Caixin Insight Group, said China’s aggressive stimulus in late September has improved sentiment.

“The Caixin manufacturing and services PMI surveys showed that market demand stabilized and optimism improved, early signs of the new policies’ impact,” Wang said.

Deutsche Bank analysts wrote …