MARKET OUTLOOK: China May Take More Aggressive Financial Measures by 2025

Forex - Nomura analysts have argued that China may adopt a more aggressive stance on fiscal measures by 2025. Officials at both the December Politburo meeting and the Central Economic Work Conference indicated that they would have a more proactive fiscal policy, similar to the approach used in early 2020 to address disruptions caused by the pandemic. Policymakers at the CEWC meeting stated that the fiscal deficit ratio would be raised next year, and in line with Nomura's expectations, more special bonds would be issued by both central and local governments.