The Central Economic Work Conference was held in Beijing to anchor the direction of economic development. According to CITIC Securities Research, judging from the requirements of the conference, policies pay more attention to policy coordination and implementation effects. In terms of fiscal policy, the conference maintained the tone of “implementing a more active fiscal policy,” reducing “increasing the deficit rate” compared to last year's statement, but increasing “maintaining the necessary fiscal deficit, total debt size, and total expenditure”. It is expected that next year's budget deficit rate may remain at around 4%. The size of special treasury bonds and new local special bonds may increase slightly; in terms of monetary policy, it is expected that there will still be a window of interest rate cuts in the first half of next year, but considering the natural decline in real interest rates due to commercial banks' interest rate spread protection demand and rising inflation, the policy interest rate decline may be 10 bps. Structurally, attention is being paid to technological innovation, technological reform and upgrading, and expansion of refinancing instruments in the direction of service consumption and pension.

The Central Economic Work Conference was held in Beijing to anchor the direction of economic development. According to CITIC Securities Research, judging from the requirements of the conference, policies pay more attention to policy coordination and implementation effects. In terms of fiscal policy, the conference maintained the tone of “implementing a more active fiscal policy,” reducing “increasing the deficit rate” compared to last year's statement, but increasing “maintaining the necessary fiscal deficit, total debt size, and total expenditure”. It is expected that next year's budget deficit rate may remain at around 4%. The size of special treasury bonds and new local special bonds may increase slightly; in terms of monetary policy, it is expected that there will still be a window of interest rate cuts in the first half of next year, but considering the natural decline in real interest rates due to commercial banks' interest rate spread protection demand and rising inflation, the policy interest rate decline may be 10 bps. Structurally, attention is being paid to technological innovation, technological reform and upgrading, and expansion of refinancing instruments in the direction of service consumption and pension.