China's Politburo held its mid-year meeting on the economy without announcing specific new policy measures, according to state news agency Xinhua. The readout dropped language describing major economic indicators as better than expected, used in April, and pointed to incremental measures and stronger countercyclical adjustment instead. Citi analysts said the tone matches their expectation of gradual measures rather than a major stimulus shift.
China's Politburo met on economic policy today and signaled readiness to add support without unveiling specific new measures, according to state news agency Xinhua. The readout kept a constructive tone overall.
Yet it also dropped the description of major economic indicators as better than expected that had appeared in April's statement. Beijing said it would fully utilize existing tools and deploy incremental measures when needed, calling for strengthened countercyclical adjustment.
The statement's reference to incremental policies marks a modest but positive change in language from prior meetings. It also mentioned strengthening new growth engines and an improving economic structure, without further detail.
Citi analysts said the readout aligned with their expectations of stronger policy language without major new actions. The firm still expects gradual policy measures to follow, though it said a major policy shift on the scale of September 2024 remains unlikely.
Source: Economy News (Investing.com)
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