China changes course: first step towards monetary easing in 14 years

For the first time in 14 years, China's leaders have revised their monetary policy, choosing a course towards easing. The decision caused a significant increase in stock and bond prices, indicating investor optimism and recognition of the seriousness of the economic challenges facing the country. This is reported by the Financial Times.

A government statement published on December 9, 2024, outlined the main priorities for the coming year. Communist Party leaders called for the implementation of "more proactive fiscal policy and moderately loose monetary policy." This approach is intended to support the country's economic growth in the face of global instability.

One of the key tasks of the government has identified is to increase the efficiency of investment and stimulate domestic demand. This involves the introduction of measures aimed at strengthening domestic consumption, as well as supporting the development of real estate and stock markets.

The decision was met with optimism in the markets. For the first time in a long time, the actions of the Chinese leadership demonstrate a willingness to make significant policy changes aimed at overcoming current economic difficulties. Investors saw this as a signal of a serious attitude to the accumulated economic problems.

After the government’s statement was published, the Hong Kong Hang Seng China Enterprises stock index rose by 3.14%. Such growth indicates a quick reaction of investors to the announced changes and their belief in the positive consequences of the new course.

The policy change is an important signal to the international community. In the context of a slowdown in the world economy and instability in global markets, China is demonstrating a willingness to be flexible and rethink strategic approaches, which can become a catalyst for stabilizing the economic situation both in the country itself and in the international arena.