Beijing commits to 'more proactive' stimulus measures

(Sharecast News) - China's leadership committed to "more proactive" fiscal measures and a moderately looser monetary policy for 2025, it emerged overnight on Monday, in a bid to bolster domestic consumption and stabilise key markets. The announcements, outlined in a key politburo meeting led by president Xi Jinping, set the stage for broader economic priorities to be determined at the upcoming Central Economic Work Conference scheduled for 11-12 December.

According to CNBC, the politburo emphasised strengthening "unconventional counter-cyclical" adjustments while stabilising the property and stock markets.

The measures were reportedly intended to mitigate challenges including a sluggish housing sector, weak consumer spending, and external pressures such as trade tensions with the United States.

While China's official economic targets for 2025 would not be unveiled until March, expectations were that the GDP growth target would remain at around 5%, mirroring this year's level or slightly lower.

President Xi had called for "full preparation" to achieve the country's 2025 economic goals despite facing significant uncertainties.

Recent data highlighted mixed economic signals - annual consumer inflation dipped to 0.2% in November, a five-month low, reflecting tepid demand.

Hong Kong's Hang Seng Index rebounded sharply following the policy announcement, while the offshore yuan and China's benchmark 10-year bond yields both saw modest movements.

Reporting by Josh White for Sharecast.com.