China’s Politburo: Will implement active fiscal policy and prudent monetary policy next year

Chinese Communist Party’s Politburo held its annual meeting on December 6, with the key highlights reported by Xinhua News Agency.

Will implement active fiscal policy and prudent monetary policy next year.

China to seek progress while maintaining stability next year.

To optimize epidemic prevention and control measures.

Plan to allow home quarantine, to ease Covid testing.

Efforts should be made to expand domestic demand.

Necessary to effectively prevent and defuse major economic, financial risks.

Hold the bottom-line of preventing systemic risks.

Necessary to promote high-level opening up to the outside world, attract and utilize foreign capital.

Market reaction

AUD/USD is unfazed by the above comments, holding gains above 0.6700 ahead of Chinese trade data. Meanwhile, USD/CNY was last seen trading 0.29% lower at 6.9746.