The neighbouring country is going to hold a briefing on fiscal policy on Saturday. Currently, investors are looking for some more measures to stimulate the world's second largest economy. The State Council Information Office has announced this program in a statement. According to the notice, Finance Minister Lan Foan will take steps to strengthen fiscal policy with the aim of promoting growth and will answer questions from reporters.

China's CSI 300 index suffered narrow losses on the news. Meanwhile, the country's 30-year government bond futures erased gains of up to 0.8% but were unchanged on speculation that the country could announce fiscal stimulus at the briefing. The offshore yuan meanwhile extended gains, trading up 0.2%. China's stock rally slows The announcement comes as China's stock rally has lost momentum after its economic planning agency announced weaker-than-expected stimulus measures at the government's first briefing after a week-long holiday.

Stock investors are hoping for more fiscal spending to avert a recession that puts the country's 5% growth target at risk. "This is a high-profile briefing because fiscal policy has been a focal point for the market," said Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Inc. "Only if the finance ministry spends money can the projects announced by the NDRC be started and monetary easing can have an impact on the real economy," he said, referring to China's economic planner, the National Development and Reform Commission. Banks expect 2 trillion yuan stimulus Banks including Morgan Stanley and HSBC Holdings PLC expect a stimulus of 2 trillion yuan ($283 billion), while Citigroup Inc. has put the amount at 3 trillion yuan. China's Prime Minister Li Keqiang on Tuesday vowed to "listen to the market" while formulating economic policies to take into account the concerns of the private sector and investors. The Dragon is currently trying to get back on track after the economy grew at the slowest pace in five quarters.