Will enhance the coordination of fiscal and monetary policyTo optimise the structure of fiscal expenditureWill keep liquidity ample, improve sustainability of government financesTo keep exchange rate basically stable, enhance flexibility of the yuanWill release the full potential of services consumptionWill boost effective investment, balance attraction of foreign investmentTo greatly boost self-reliance in science and technologyWill boost high quality development of real estateTo promote healthy and stable housing market developmentWill promote high-quality and adequate employmentTo enhance advantages in rare earths, metals, and also use of strategic mineralsWill encourage internet platforms, AI firms to expand overseas applicationsTo reasonably adjust import tariffs, expand imports of agricultural productsTo improve supply safeguards for grain and important agricultural products
All of this builds on the earlier announcement here. There is a lot more to it but these are arguably the more relevant points for markets to take note of. Again, the main message here is basically a high-level and top-down outline of what they are trying to achieve. You’d hardly see lawmakers and policymakers dive into much detail when providing this overview as they begin the annual session this week.
The most important takeaway so far is that China is outlining that it will be setting out a 2026 GDP target of 4.5% to 5.0%. Analysts were expecting the target to be around there with some estimating that it could just even be set at 4.5%. It is a slight step down from the 2025 GDP target of 5.0%. But if we know Beijing and I’m sure we all do, expect China to be able to meet this new target by hook or by crook.
This article was written by Justin Low at investinglive.com.