China's cabinet repeats call to step up counter-cyclical policy support
State radio reports the cabinet's statement carries no new fiscal or monetary figures attached to it
Published
China's cabinet said it should step up counter-cyclical adjustments in macroeconomic policy, according to state radio. The statement did not include new spending figures or specific measures.
Similar language has surfaced repeatedly over the past year. A Communist Party leadership meeting on July 30 urged intensified counter-cyclical adjustment and expanded domestic demand ahead of the 15th Five-Year Plan period, according to Xinhua. China's National Development and Reform Commission made a similar pledge at a mid-year work conference the same day, alongside promises on private investment support and faster AI legislation, without naming new incremental measures, according to China Daily Brief. The People's Bank of China separately promised stronger countercyclical adjustments in August, according to China Daily. PBoC governor Pan Gongsheng also holds the Communist Party committee secretary post that carries influence over the central bank's direction, according to FXStreet.
Markets have generally treated this kind of language as a signal of intent rather than a trigger for policy, since it has recurred without a specific new stimulus figure attached over the past year. With no fresh fiscal or monetary detail accompanying Monday's statement, it reinforces the easing bias already priced into China-linked assets rather than shifting it, leaving the near-term outlook largely unchanged.