China plans increased government spending and relaxed monetary policy to boost economy

Chinese leaders have outlined plans to boost government spending and ease monetary policy to stimulate the economy. This follows a two-day Central Economic Work Conference, where they addressed challenges posed by potential tariffs from President-elect Donald Trump. The government aims to increase its deficit beyond the current 3% of GDP and align wage growth with economic performance. They will also issue more long-term bonds to support these initiatives, although local debt remains a concern. Additionally, the People's Bank of China plans to adopt a "moderately loose" monetary policy, cutting interest rates to encourage investment and housing purchases. However, investors expressed disappointment over the lack of specific details from the meetings, leading to declines in stock markets.