China’s Politburo on Thursday signaled it will continue to rely on existing policy tools rather than unveil large-scale stimulus, emphasizing the need to “fully use” current measures. While no major easing appears imminent, leaders pledged stronger countercyclical adjustments and “pragmatic, effective” actions when appropriate, though without specifying a timetable.
The authorities said they would accelerate fiscal spending and the use of bond proceeds to bolster demand and improve the supply side, while intensifying support for breakthroughs in advanced technologies, future industries, and emerging sectors. The leadership also reaffirmed its commitment to stabilizing the property market, safeguarding employment, addressing local government debt risks, reforming smaller banks, and deepening capital-market reforms.
This cautious approach was broadly anticipated after Beijing trimmed its 2026 growth target to 4.5%–5%, even as the second quarter delivered the weakest quarterly expansion in more than three years.
