China To Stabilise Growth Next Year

China will adopt more active pro-growth policies next year in line with he Politburo's meeting last week which emphasised "progress while maintaining stability," said Ming Ming, chief economist at CITIC Securities. The group's goal to "moderately increase the intensity" of fiscal policy may mean setting the budget deficit-to-GDP ratio at about 3.5%, a rise of 0.5 pp from 2023, as well as keeping the scale of new local government special bonds at about CNY4 trillion to uplift infrastructure investment and offset the impact of the real-estate downturn, adding CNY200 billion from the previous year, said Wang Qing, chief macro analyst at Golden Credit Rating. Monetary policy, meanwhile, will focus on improved effectiveness, such as guiding the pace and maturity requirements of credit supply to better match market entities' capital needs, said Liang Si, researcher at Bank of China Research Institute. (Source: Yicai)