China Signals It Will Ramp Up Economic Growth Efforts

China has reaffirmed its commitment to boosting economic growth following a high-level economic planning meeting that concluded on Thursday. In the meeting reported by state television CCTV after the close of the mainland Chinese market, the government's intention to adopt a proactive fiscal policy was emphasized. This includes plans to increase the deficit next year and issue more ultra-long-term bonds.

The iShares China Large-Cap ETF (NYSEARCA:FXI) rose by 0.8% in pre-market trading but later reduced those gains. The annual economic conference chaired by President Xi Jinping also indicated a willingness to moderately ease monetary policy by lowering interest rates.

This approach reflects the stance adopted during a Politburo meeting held on Monday and marks the first use of the term "moderately loose" monetary policy since the 2008 global financial crisis. This language suggests a significant focus on strengthening China's economy and preparing for a potential trade dispute with the U.S. in light of Donald Trump's return to the presidency.

Specific targets for annual growth and fiscal deficits are traditionally announced during the Chinese parliament's meetings in March. Recent meetings have highlighted that China is taking proactive steps to overcome economic challenges and signaled potential policy directions for the upcoming year.