Analysis: Why April Politburo Meeting is Keeping Incremental Stimulus in Reserve
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At a Politburo meeting held on April 23 and chaired by President Xi Jinping, China’s top leaders assessed the current economic landscape amid rising external pressures, pledging to roll out more supportive policies.
However, the meeting stopped short of announcing any budget adjustments or large-scale stimulus policies.
With the steep U.S. tariffs imposed on China since April heightening export risks, markets had anticipated countermeasures, particularly fiscal measures such as adjustments to the budget deficit and expanded quotas for special-purpose and ultra-long-term government bonds.
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- China’s Politburo, led by President Xi, pledged to accelerate existing fiscal and monetary policies, without introducing new large-scale stimulus, despite rising U.S. tariffs.
- Significant fiscal headroom remains: only 28% of planned government bond financing was used in Q1, with further bond issuances ongoing; new stimulus may come mid-late Q3 if needed.
- Policy focus areas include expanding service consumption, refining real estate measures, and launching new monetary tools to support innovation and foreign trade.
- China Securities Co. Ltd.
- China Securities Co. Ltd. is a major securities firm in China. It provides a range of financial services, including securities brokerage, investment banking, asset management, and research. The company is known for its in-depth market analysis and plays a significant role in China’s financial markets. The chief macro analyst at China Securities Co. Ltd., Zhou Junzhi, authored the analysis in the article above.
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