The support package came after smaller measures were announced to jump-start growth. Economists said it was not big enough to address China’s sluggish economy.

China top legislative body approved a bill on Friday to allow local governments to issue 6 trillion yuan ($838.8 billion) in bonds to swap for off-balance sheet or "hidden" debt over three years, as policymakers sought to spur the sluggish economy.

China Friday announced a $1.4 trillion economic stimulus that includes a three-year local government re-finance plan for what was described as hidden debt. But it fell short of what many investors believe is needed.

Friday's announcement is the latest in a string of stimulus measures China has taken to turn around its ailing economy.

China kicked off a fresh round of fiscal support on Friday for its sputtering economy with a package that eases debt repayment strains for local governments, with Finance Minister Lan Foan signalling further stimulus in the pipeline.

China has unveiled a $1.4T stimulus package over five years to ease the heavy debt burdens of local governments and support economic growth. The measures were announced after the parliament ended its five-day meeting in Beijing on Friday.

China on Friday unveiled some of its most ambitious plans in years to lift local government debt and boost its economy, following a meeting of lawmakers eyeing the possibility of