CHINA SHIFTS TO 'MODERATELY LOOSE' MONETARY POLICY, FIRST TIME SINCE 2011, AND PROMISES 'MORE PROACTIVE' FISCAL STIMULUS FOR 2025 🇨🇳 $BABA (-2,95 %)
China’s
Politburo, the top decision-making body of the Communist Party led by President Xi Jinping, has made a major policy shift, adopting a “moderately loose” monetary policy for 2025 – the first time it’s moved away from its “prudent” stance since 2011. The body, made up of 24 senior officials, also pledged to roll out a “more proactive” fiscal policy to boost spending and stabilize growth.
The move comes as Beijing looks to shore up confidence amid sluggish growth and brace for potential economic headwinds, including Donald Trump’s proposed tariffs on Chinese exports. Officials are doubling down on stabilizing property and stock markets while emphasizing “extraordinary counter-cyclical policy adjustments” – basically, rolling out bigger, targeted measures to support the economy.