The Politburo, the country's top decision-making body, "held a meeting to analyse and study the economic work of 2025", state news agency Xinhua said.
"We must vigorously boost consumption, improve investment efficiency, and comprehensively expand domestic demand," Xinhua quoted officials as having said.
"Next year we should... implement a more active fiscal policy and an appropriately relaxed monetary policy," they added.
The world's second-largest economy is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt -- all of which threaten Beijing's official growth target for this year.
Leaders are also bracing for the second term of Donald Trump in the White House, with the president-elect indicating he will reignite his hardball trade policies, fuelling fears of another standoff between the superpowers.
Beijing has unveiled a string of measures since September aimed at bolstering growth, including cutting interest rates, cancelling restrictions on homebuying and easing the debt burden on local governments.
And in October, the central bank said it had cut two key interest rates to historic lows.
But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China's economy as fears of a renewed trade war with the United States mount.
Seoul stocks dive on South Korea woes as Asian markets struggle
Hong Kong (AFP) Dec 9, 2024 -
South Korean stocks tumbled Monday as the country was racked with political uncertainty after President Yoon Suk Yeol escaped impeachment following his brief imposition of martial law last week.
The retreat came on a tough day for Asian markets despite another record on Wall Street, while traders were also awaiting a high-level economic meeting in China and keeping tabs on Syria after president Bashar al-Assad's removal.
Investors in Seoul were on edge after a near-total boycott of Saturday's impeachment vote by Yoon's People Power Party (PPP) doomed it to failure.
However, the main opposition party said Sunday it would try again, while police arrested the defence minister in charge of the martial law operation and the interior minister resigned.
They and Yoon are being investigated for alleged insurrection. The president was also hit Monday with a travel ban.
The crisis has fuelled concerns about Asia's number four economy, which was already struggling and faces further pain as Donald Trump heads back to the White House threatening to resume his hardball trade policy.
Michael Wan at MUFG said the hit to the country's markets "may include slower tourism inflows, weaker domestic demand, and a dent to corporate sentiment, especially if street protests become more vociferous and the Budget passage remains in stalemate".
"South Korea was already one of the more vulnerable forex markets in Asia to Trump 2.0's policies, and the political uncertainty also comes at a juncture just when leadership is needed to navigate these significant global policy shifts."
The won was trading at around 1,437 per dollar Monday, compared with 1,413 on Friday.
Shanghai and Hong Kong stocks dipped as top Chinese officials prepare to hold a two-day economic work conference this week to outline their targets and stimulus plans for next year.
The gathering comes as Beijing prepares for Trump's second presidency amid concerns of another painful trade war between the superpowers.
Data released Monday showed Chinese consumer prices rose less than expected last month, reinforcing the need for more support following a raft of measures at the end of September.
"Hopes are for a clear commitment to support the economic recovery and close the shortfall in domestic demand. Growth and deficit targets are likely to be discussed," said analysts at National Australia Bank.
Elsewhere in Asia, Tokyo, Taipei and Jakarta rose while Manila, Bangkok, Wellington and Singapore fell. Mumbai and Sydney were flat.
Traders had been given a healthy lead from Wall Street, where the S&P 500 and Nasdaq both ended at record highs after figures showed the US economy added more jobs than forecast last month.
Focus is now on the Federal Reserve's policy meeting next week when it is tipped to cut interest rates again.
Developments in Syria are also being tracked after Assad's fall at the weekend as rebels swept into Damascus, triggering celebrations across the country and beyond.
The government fell 11 days after the rebels began a surprise advance, more than 13 years after Assad's crackdown on anti-government protests ignited Syria's civil war.
The euro remained on the back foot but slightly stronger than last week when it took a hit after France's new government fell after a no-confidence vote, while the European Central Bank is expected to lower borrowing costs this week.
President Emmanuel Macron, who had faced calls to step down, lifted sentiment when he said would serve out his term and that a budget could be passed in the coming weeks.
Macron held talks with French political leaders on the left and right on Friday as he sought to quickly name a new prime minister after Michel Barnier's ouster over his 2025 budget plan.
Related Links
Global Trade News
| Subscribe Free To Our Daily Newsletters |
| Subscribe Free To Our Daily Newsletters |
