The Central Committee of the Communist Party of China, chaired by President Xi Jinping, discussed the country's economic situation and planed for future work. The leadership emphasized the need for macroeconomic policy adjustments, including enhanced fiscal and monetary policy, such as lowering the reserve requirement ratio and introducing targeted measures to stabilize the real estate market.

The meeting also highlighted the importance of stimulating domestic demand, supporting the stock market, and improving the overall business environment, particularly for private enterprises. Additionally, it stressed the significance of safeguarding public welfare, addressing employment challenges for key groups, and ensuring the stability of food and energy supplies. The Central Committee called for an increased focus on high-quality development and innovation, urging party officials to take responsibility and foster a favorable environment for economic recovery and sustainable growth.

Comments from Keywise Capital

It is uncommon for the Central Politburo to hold a meeting right before the National Day, and this meeting specifically focused on the current economic situation. Additionally, we have heard that significant fiscal stimulus measures, such as large-scale consumer vouchers, will be introduced, with the initial launch expected in Sichuan Province. In conjunction with the stronger-than-expected monetary easing policies introduced yesterday, we believe this marks a significant shift in China's economic policy. We expect substantial fiscal stimulus measures to follow, aimed at boosting demand and economic growth. If those methods are successfully implemented, The Chinese stock market will stabilize and my go higher.