China: Foundation for economic recovery is not solid

Citing Chinese state media, Reuters is reporting headlines from China's annual Central Economic Work Conference.

Key takeaways

"Foundation for China's economic recovery is not solid."

"China's economy faces  relatively big pressures from shrinking demand, supply shock and weakening expectations."

"China will implement prudent monetary policy in 2023."

"China will implement proactive fiscal policy in 2023."

"China's monetary policy will be precise and forceful."

"China will keep liquidity reasonably ample."

"China should better coordinate epidemic prevention and control and economic and social development."

"China will step up macro economic adjustments, strengthen policy coordination."

"China will expand domestic demand, prioritise consumption recovery."

"China will continue to give full play to the role of exports in supporting the economy."

Market reaction

Markets remain risk-averse with the US stock index futures losing around 1% following these comments.