On September 28, 2023, Chinese President Xi Jinping attended a reception dinner held at the Great Hall of the People on the eve of National Day in Beijing, China.
Gao Yu | Pool | via Reuters
China’s leaders pledged on Monday to adopt “more proactive” fiscal measures and “moderately” loose monetary policy next year to boost domestic consumption official reading A major policy meeting outlines upcoming economic priorities.
According to CNBC, the Political Bureau of the Communist Party of China Central Committee stated that it will stabilize real estate and stock markets while strengthening “unconventional countercyclical” adjustments.
The high-profile meeting sets the stage for the annual Central Economic Work Conference, which will reportedly be held between December 11 and 12.
During the two meetings, senior policymakers Gather together to review economic performance And determine the current year’s policy implementation status and determine key tasks for the next year.
Central government will also discuss growth targets and budgets for 2025, partly to provide guidance for local governments in setting their own targets ahead of the annual parliamentary session early next year.
Growth trajectory
Although specific details will not be announced until March, Beijing’s GDP growth target for next year is widely expected to remain at “around 5%” – the same level set this year – or even drop slightly.
China’s state-run Xinhua News Agency reported late on Monday that Xi Jinping urged “to be fully prepared” to achieve the country’s economic goals for 2025 despite “many uncertainties and challenges.”
According to CNBC, Xi Jinping said at a symposium on December 6 that “we must strengthen our confidence” and “actively create an external environment that is conducive to us.”
While China’s economy is expected to hit its growth target this year, it still faces challenges from a protracted slump in the real estate market, tepid domestic consumption and the potential for escalation in U.S.-China trade tensions as President-elect Trump prepares to return to the United States in January. question.
China’s latest economic data showed that China’s annual consumer inflation rate fell to a five-month low of 0.2% in November. The National Bureau of Statistics announced on Monday.
After the news was announced, Hong Kong’s Hang Seng Index reversed early losses and rose 2.8%, while China’s offshore yuan strengthened slightly to 7.2776 against the US dollar.
Hong Kong-traded iShares FTSE China A50 exchange-traded futures soared more than 3%.
Data from the London Stock Exchange showed that China’s benchmark 10-year government bond yield also fell by about 2 basis points to 1.935%, a record low.
iShares FTSE China A50 ETF
