Needs to call for more effective, proactive fiscal policyTo continue to expand domestic demandTo implement appropriately loose monetary policyWill ensure liquidity conditions remain ampleWill keep yuan exchange rate basically stableTo improve energy security, stabilise property market and price of agricultural productsTo orderly resolve risks related to local government debt
The readout reaffirms their existing policy path but there is a subtle leaning towards favouring stabilisation and security. If anything, that suggests a more consolidative tone in being more guarded against the narrative of a global growth slowdown. That especially as the US-Iran conflict has threatened the world economy on multiple fronts.
But if anything, it reaffirms that Beijing is continuing to hold more easy policy in general to try and stimulate the local market environment. Trying to prop up domestic demand conditions remain their biggest challenge and will continue to be the case in the years to come still. That ever since the collapse of the property market since the Covid pandemic.
This article was written by Justin Low at investinglive.com.