Beijing signals more stimulus alongside trade data disclosures

The news: Beijing hinted that more liquidity support for China’s economy is likely during a briefing on Wednesday, and unexpectedly provided disclosures around the country’s trade-data performance.

The numbers: An economic official said China had started the year on a strong note, with exports growing around 10% year-over-year in January and February. The data was disclosed one day before the country is due to publish its official trade data for January and February. Earlier this week, Beijing announced its 5% growth target for 2024.

The context: At the news conference on Wednesday, governor of the People’s Bank of China, Pan Gongsheng said that there is room to cut banks’ reserve requirements, while committing to prop up consumer prices and keeping the yuan stable. “China has a plentiful monetary-policy toolbox,” Pan said. “And its monetary policy still has ample space,” vowing to support prices and keep the Chinese yuan stable.

The country experienced an 8.2% jump combined exports and imports, but despite the strong start, officials also noted that global trade conditions remain challenging and that global growth is expected to remain stifled this year.