Investors search for fresh China stimulus signs ahead of Xi Jinping’s economic conference
Increasing the government’s budget or support measures for consumption and the property market would be welcomed by investors
A date for the meeting has yet to be set, though media reports say it will be held on December 11 and 12. Stock traders are not sure what will emerge from the work conference, but any mention of increasing the government’s budget or support measures for consumer consumption and the property market would be considered welcome catalysts.
“There’s lots of uncertainty about whether the economy will stabilise eventually,” said Yuan Fang, an analyst at SDIC Securities. “So the market is paying great attention to the central economic conference. How the conference sets out the magnitude and pace of growth-stabilising policies will determine the direction of the equity market.”
Citic Securities, China’s largest listed brokerage, said the conference is likely to maintain a positive tone for macroeconomic policies in 2025, and leaders are expected to highlight local-government debt, the property market, consumption and technological innovation as the nation’s essential priorities.
More specifically, China will increase home purchases to build a reserve of affordable housing next year and encourage local governments to buy back idle land to prop up the property market, Citic Securities said last month. It also expects Beijing to deliver more mortgage-rate cuts to spur demand and push the tech industry to reduce its reliance on overseas sources.
