- Needs to call for more effective, proactive fiscal policy
- To continue to expand domestic demand
- To implement appropriately loose monetary policy
- Will ensure liquidity conditions remain ample
- Will keep yuan exchange rate basically stable
- To improve energy security, stabilise property market and price of agricultural products
- To 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.
