Episode Details

Top policymakers pledged on Monday that China would adopt an even more proactive fiscal policy and a moderately loose monetary policy in 2025, as part of broader moves to boost the recovery of the world's second-largest economy and strengthen the living standards of the people.

The pledge came as the Political Bureau of the Communist Party of China Central Committee, the Party's core leadership, met to map out economic priorities and plan anticorruption efforts for next year.

Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting.

Analysts noted that China's policymakers have signaled a greater resolve to stabilize growth, in order to embrace uncertainties next year with enhanced policy measures.

The meeting vowed to roll out more proactive and effective macro policies to boost domestic demand and spur sci-tech innovation, highlighting the need to ensure the stability of stock markets and the real estate sector.

The prevention and defusing of risks in key sectors and external shocks were also stressed by policymakers, aiming to stabilize expectations and stimulate the vigor of the economy.

They also pledged to enrich and improve the policy toolkit, strengthen "unconventional countercyclical adjustments", intensify the coordination of various policies, and make macro regulation more forward-looking, targeted and effective.

Zhang Jun, chief economist of China Galaxy Securities, said the nation's embracing of a "moderately loose monetary policy", a major shift in stance since 2011, could entail greater strides in rate cuts and reductions in the reserve requirement ratio by the People's Bank of China next year.

Meanwhile, an even more proactive fiscal policy could point to a greater emphasis on consumer spending and the real estate sector, Zhang said.

The meeting reaffirmed the importance of lifting consumption and improving investment efficiency, saying that domestic demand should be expanded across the board.