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CHINA: Consumers in Focus as Fiscal Spending to Come. 

CHINA
  • Following the Central Economic Work Conference in Beijing, state-run Xinhua News is reporting that officials have decided to raise the fiscal deficit in 2025.
  • Whilst policies announced year to date have had a tilt towards the property sector, the next phase for policy will focus on the consumer.
  • Consumer confidence has been in decline materially now for three years as a direct result of the decline in property sector.  
  • Additional policy actions are being discussed that will include a focus on a variety of social policies such as increasing pensions and health care.
  • These meetings are about the tone of policy not execution and often market participants miss that and claim them to be disappointing.
  • This meeting has only ever delivered broad outcomes, not direct policy and this week was no different.
  • Over the last week we have seen the tone shift in monetary policy to ‘moderately loose’ from ‘prudent’.
  • The March legislative sessions is where ministries will present their execution strategies to meet the objectives discussed over the last week. 
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  • Following the Central Economic Work Conference in Beijing, state-run Xinhua News is reporting that officials have decided to raise the fiscal deficit in 2025.
  • Whilst policies announced year to date have had a tilt towards the property sector, the next phase for policy will focus on the consumer.
  • Consumer confidence has been in decline materially now for three years as a direct result of the decline in property sector.  
  • Additional policy actions are being discussed that will include a focus on a variety of social policies such as increasing pensions and health care.
  • These meetings are about the tone of policy not execution and often market participants miss that and claim them to be disappointing.
  • This meeting has only ever delivered broad outcomes, not direct policy and this week was no different.
  • Over the last week we have seen the tone shift in monetary policy to ‘moderately loose’ from ‘prudent’.
  • The March legislative sessions is where ministries will present their execution strategies to meet the objectives discussed over the last week.