BEIJING, CHINA – NOVEMBER 9: Chinese President Xi Jinping meets with Indonesian President Prabowo Subianto (not pictured) at the Great Hall of the People on November 9, 2024 in Beijing, China.
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China confirmed recent policy shifts and highlighted plans to boost growth at a high-level economic planning meeting that ended on Thursday, according to CCTV’s daily evening news report.
The report was released after markets closed in mainland China. this iShares China Large Cap ETF (FXI) It rose 0.8% in pre-market trading.
The annual economic planning meeting chaired by Chinese President Xi Jinping called for aggressive fiscal policy next year, increasing the deficit and issuing more ultra-long-term bonds, according to state media reports. The meeting also confirmed China’s plans for moderately loose monetary policy, it added.
The sentiment echoed Monday’s high-level meeting of the Politburo, the second most powerful body in the ruling Chinese Communist Party. Since this announcement, there has been no news of using “moderately loose” monetary policy. The depth of the global financial crisis 2008.
China usually announces full-year growth targets and fiscal deficits at its annual National People’s Congress meeting in March.
Politburo Monday swear In 2025, “more proactive” fiscal tools and “moderately loose” monetary policies will be implemented, while “unconventional countercyclical adjustments” will be stepped up to boost domestic consumption “all-round” Report from the state-run Xinhua News Agency.
Since late September, Chinese officials have stepped up stimulus measures, including cutting interest rates multiple times, easing home purchase requirements, providing liquidity support for the stock market and 10 trillion yuan ($1.4 trillion) stimulus package A package to ease local government debt problems within five years.
However, recent economic data suggests these measures will not be enough to offset persistent deflationary pressures in the economy, fueling investor hopes that Beijing will further increase stimulus measures to revive growth.
The national consumer price increase dropped to November hits five-month lowWholesale prices continue to be deflationary, with the producer price index falling for 26 consecutive months.
Chinese authorities reiterated Beijing’s intention to stimulate consumption throughout the year. Almost no policies have been introduced, except for Subsidy program to incentivize trade Used home appliances and electronics.
Although policy details and specific figures will not be announced until next March’s National People’s Congress, Beijing is widely expected to Maintain GDP growth target for next year “About 5%.”
Policymakers may also set higher-than-usual budgets Deficit target as high as 4% Some economists predict this will lead the central government to increase borrowing to support the weakening economy.
