Loading Now

Chinese leaders pledge ‘moderately loose’ economic strategy, more back for slowing economy


BANGKOK — China’s top leaders have pledged to loosen economic strategy and provide more back for the slowing economy, while Premier Li Qiang swiped at threats of higher tariffs on Chinese exports, saying they hinder global growth.

Shares in Hong Kong jumped Monday after state media released a update on the conference by the ruling Communist event’s Politburo that said leaders would “implement more energetic financial policies and moderately loose monetary policies.”

The shift to “moderately loose” from the “prudent” monetary policies of the history 14 years was taken as a significant shift by trade players, unleashing a spate of buying that pushed the Hang Seng index up 2.8%.

“This marks a significant recalibration in their way, aiming to cushion the anticipated economic shocks” (from higher tariffs), Stephen Innes of SPI resource Management said in a commentary.

Several months ago, the Chinese central lender and other regulators began rolling out various policies aimed at encouraging businesses and households to spend more money. Overall, Monday’s statement mostly reiterated the same broad promises as usual.

“The readout leaves little question that the shift toward a more supportive policy stance that began in September is still alive and well,” Julian Evans-Pritchard said in a update. He noted that the last such shift was in late 2008, during the global financial crisis, and that it may be followed by faster gain rate cuts in the coming year.

Monday’s conference has set the tone for an annual economic planning conference later in the week that will reaffirm policies for the coming year.

China’s economy has growing a bit more slowly than the official target for a 5% expansion in annual terms this year, and the property trade is still in the doldrums. customer spending remains subdued, having never fully recovered after the COVID-19 pandemic, and the statement from the Politburo conference promised a “combination punch” of government spending and easier loan to assist boost consumption.

customer expense boost in November was a lower-than-expected 0.2%, the government reported Monday, down from 0.3% the month before mainly due to lower food prices. That leaves ample room for gain rate cuts, analysts said.

With youth unemployment still relatively high and many households feeling the pinch of lower housing prices and unstable jobs, the statement called for improving the “people’s sense of boost, joy and safety.”

“We must do a excellent job in people’s livelihood protection and safety and stability the ensure the stability of the overall social circumstance,” it said.

Also Monday, Li, who as premier has the traditional role of overseeing the economy, met with heads of the globe lender and other large international financial organizations.

Li did not refer to the United States by name, but took aim at countries that restrict trade through higher tariffs and other measures, in a veiled slam at Washington at a period when the U.S. has been tightening controls on exports of advanced technology, while President-elect Donald Trump is threatening to sharply hike import duties on Chinese products.

“If we look at the obstacles to economic globalization, some countries now easily resort to imposing additional high tariffs, erecting barriers of protection. There are more and more restrictive measures on trade,” Li said.

“The rationale why I’m talking about this issue is that under the background of frail financial expansion of the globe, this issue has further increased uncertainties and caused huge interference to the operation of the global economy,” he added.



Source link

Post Comment

YOU MAY HAVE MISSED