Key Points

• China’s leaders on Monday pledged “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption, according to an official CNBC-translated readout.
• Later this week, the Beijing administration is reportedly expected to review economic performance and policy implementation in the current year, while setting priorities for the following one.
• While specifics will not be announced until March, it is widely expected that Beijing will keep its next year’s GDP growth target at “around 5%” — the same level that was set for the current year — if not slightly lower.

China’s leaders on Monday promised “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption, according to an official readout of a key policy meeting that outlined upcoming economic priorities.

The Politburo, a top decision-making body led by President Xi Jinping, said it will stabilize the real estate and stock markets while strengthening “unconventional countercyclical” adjustment, according to the Communist Party’s CNBC-translated reading.

The high-profile meeting has set the stage for an annual Central Economic Work Conference, which is supposed to take place between December 11 and 12.

During both meetings, key policymakers meet to review economic performance and policy implementation in the current year, while setting priorities for the next.

The central administration will also discuss its growth target and budget for 2025, in part to provide guidance to local governments on setting their own targets ahead of the annual session of parliament early next year.

Growth trajectory

While specific details will not be announced until March, Beijing is widely expected to keep its GDP growth target for next year at “around 5%” – the same level it set for the current year – if not slightly below.

Chinese state media Xinhua reported late Monday that Xi called for “full preparation” to achieve the country’s 2025 economic goals, despite “many uncertainties and challenges.”

“We must affirm trust” and “actively build an external environment that is favorable to us,” Xi said at a symposium on December 6, according to a CNBC translation.

While China’s economy is on track to meet this year’s growth target, it still faces a prolonged housing crisis, tepid domestic consumption and a possible escalation of trade tensions with the United States, as President-elect Donald Trump prepares its return to the economy in January. White House.

China’s latest economic data showed the country’s annual consumer inflation fell to a five-month low of 0.2% in November, according to data from the National Bureau of Statistics released on Monday.

Hong Kong’s Hang Seng Index reversed earlier losses and rose 2.8% following the reading, while the offshore Chinese yuan strengthened modestly to 7.2776 against the dollar.

iShares FTSE China A50 exchange-traded futures trading in Hong Kong rose more than 3%.

Meanwhile, China’s benchmark 10-year yields fell around 2 basis points to 1.935%, a record low, according to LSEG data.