China’s Politburo pledges ‘escalated’ fiscal spending and support: analysts

With the end of the year fast approaching – and the window for China to meet its annual economic targets narrowing by the day – high-level policymakers have issued a call for swift action to shore up growth and build a foundation for sustained performance through 2025, analysts said.

“The meeting conveyed an unusual message of committed and escalated policy support,” said HSBC analysts Liu Jing and Erin Xin in a note on Monday.

They called it “a timely pledge”, as Donald Trump’s second term as US president brings greater uncertainties and deflationary pressures suggest domestic demand remains soft.

HSBC said fiscal policy should lead the way, with analysts expecting a “larger official fiscal deficit and ongoing issuance of special central government bonds,” complemented by “additional monetary easing”.