🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

China signals boost in economic growth efforts

Published 12/12/2024, 14:38
© Reuters.
FXI
-

China has confirmed its commitment to stimulating economic growth following a top-level economic planning meeting that concluded on Thursday. The meeting, which was reported by state-run CCTV after the mainland China market had closed, emphasized the government's intention to adopt a proactive fiscal policy. This includes plans to increase the deficit and issue more ultra-long bonds in the coming year.

The iShares China (TSX:XCH) Large-Cap ETF (NYSEARCA:FXI) experienced a 0.8% rise in premarket trading, although it later reduced those gains. The annual economic conference, presided over by President Xi Jinping, also indicated a willingness to moderately ease monetary policy by lowering interest rates.

This approach mirrors the stance taken during a Politburo meeting held on Monday, which marked the first time since the global financial crisis in 2008 that the term "moderately loose" monetary policy was used. This language suggests a significant focus on bolstering China's economy and bracing for a possible trade conflict with the United States, in light of Donald Trump's return to the presidency.

The specific targets for annual growth and fiscal deficit are traditionally announced during China's parliamentary meeting in March. The recent meetings underscore China's proactive steps to navigate economic challenges and signal potential policy directions for the upcoming year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.