Report: China is considering approving new support packages worth over 10 trillion yuan.

On Tuesday, the American news agency Reuters published a report - based on some of its sources familiar with the matter - stating that the Chinese government is currently considering approving the issuance of more than 10 trillion yuan in the form of additional debt instruments over the next few years, in order to provide more stimulus packages to revive economic conditions.

The agency's sources indicated that the package is expected to be further enhanced if former U.S. President Donald Trump wins the upcoming American elections scheduled for early next week, on November 4 and 5.

In this context, Reuters sources explained that a meeting of the National People's Congress - China's highest legislative body - is set to take place next week, where it is scheduled to convene to discuss the matter, with the announcement of the discussions' outcome expected on November 8.

Two sources added that the package under consideration by China includes 6 trillion yuan raised through special sovereign bonds, in order to address local government debt risks, along with another 4 trillion yuan related to the real estate sector. However, the sources cautioned that these plans are not finalized yet and remain subject to change.

This comes at a time when Chinese stocks have been struggling to gain some momentum since China's return from the Golden Week holiday; therefore, this news could lead to a significant improvement in investor sentiment towards Chinese stocks.