- It will implement a more proactive fiscal policy and fairly loose monetary policy
- To strengthen and develop the policy toolbox
- Domestic demand must be expanded in all directions
- Consumption must increase strongly
- To widen opening up to the outside world, stabilize foreign trade and investment
- It will post “unconventional” anti-cyclical changes
- It will develop support to improve people's livelihoods
- To stabilize property and stock markets
The big change here is that China says it will move towards a “medium loose” monetary policy. That is a sign that they will go even further on mitigation measures to enter next year.
That is breathing some life into Chinese assets, with the Hang Seng now turning losses into gains after domestic markets closed. Meanwhile, AUD/USD has also increased from around 0.6385 earlier to 0.6405 currently.
It is a special change on the part of Beijing because they are working rather urgently to try to revive the situation of domestic demand. But again, this is a high-level statement and further easing is expected on the part of the PBOC. The question for some time now is how much fiscal support the government can deliver together. And that remains to be seen.
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