CHINA CEWC readout states priorities for 2024 policy; will plan new round of fiscal reforms; will speed up construction of new model for real estate development

ECONOMIC COMMENTARY:

• To 'establish first before demolishing' for economic work next year.
• To insist on seeking progress while maintaining stability and to promote stability with progress.
• Necessary to overcome some difficulties and challenges in promoting the economic rebound.
• Says economy is recovering and improving.
• China will consolidate and enhance economic recovery.
• Will fend of risks in key areas.
• Will improve the resilience of supply chains.
• Will promote the development of private firms.

MONETARY POLICY:

• Will strengthen counter-cyclical and cross-cyclical macro policy adjustments.
• Will keep liquidity reasonably ample.

FISCAL POLICY:

• China will implement structural tax and fee reduction policies, and fiscal sustainability.
• Will plan new round of fiscal and tax institutional reform, implement financial institutional reform.

BANKING/REAL ESTATE:

• To encourage development of VC and equity investment.
• Will speed up construction of new model of real estate development, coordinate the resolution of local debt risks and stable development.
• Will accelerate construction of affordable housing.
• Will diffuse local debt risks.
• Necessary to coordinate and resolve risks of real estate, local debt, small and medium-sized institutions.
• Will crack down in illegal financial activities.
• Will guide financial institutions to boost science and technology innovation, green transformation, small and medium-sized enterprises, and digital economy.

TECH:

• Will promote new industrials, develop the digital economy, accelerate development of AI.

AGRICULTURE:

• Will ensure stable and secure supply of food and other important agricultural products.