China pledges 2025 stimulus for economic revival

The measures mentioned also included a pledge to stabilise markets, the property sector and boost consumption. All part of a broad effort to bolster economic growth and domestic demand.

Economists expect the announcements will translate into further rate cuts, asset buying and a wider fiscal deficit at Beijing's annual legislative session in March, but remain cautious about execution.

The numbers: The announcements came as November inflation data showed consumer prices rose 0.2% year-on-year, while producer prices fell 2.5%, reflecting deflation pressures.

Markets responded positively, with Hong Kong’s Hang Seng Index gaining 2.8% after the Politburo announcement, its best day in weeks. China’s 10-year bond yields also fell to a record low of 1.92%.

What they said: “Difficulties and challenges arise every year, but we have always developed in the baptism of wind and rain,” President Xi Jinping told officials, according to Xinhua.

“The wording in this Politburo meeting statement is unprecedented,” said Zhaopeng Xing, senior strategist at ANZ. “The policy tone shows strong confidence against Trump threats,” he added.

“For a sound economic performance in 2025, more proactive and impactful macro policies should be adopted,” Xinhua cited the Politburo statement as saying.

The committee, chaired by President Xi Jinping, “urged implementing a more proactive fiscal policy and a moderately loose monetary policy,” the state agency said.

“It is necessary to enrich and improve the policy toolkit, strengthen unconventional counter-cyclical adjustments, intensify the coordination of various policies, and make the macro regulation more forward-looking, targeted and effective, the meeting noted. The country should vigorously boost consumption, improve the investment efficiency, and expand domestic demand on all fronts, it said,” according to Xinhua.