China expected to ramp up municipal special debt quotas at next week's parliament meeting

China's annual parliament meeting begins next week:

• China's annual parliament, the “Two Sessions,” starts next week.

A snippet from Goldman Sachs on some key points to watch for:

• estimates the special debt quota municipalities would be allowed to issue will be increased to 4.7 tn yuan, from 3.9 trillion yuan in 2024
• keeping employment growing will be a key goal, Goldman Sachs are looking for a jobless rate target of around 5% (vs. around 5.5% last year)

UBS:

• estimates the special debt quota municipalities would be allowed to issue will be increased to 4.5 tln yuan

The backdrop to this meeting is a challenging one.