First, Sophie claims that the Chinese government has decided to adopt a “pro-growth” approach and says: “The policy makers adopted a ‘pro-growth’ position at the Central Economic Work Conference (CEWC) held in December, and they are expected to reiterate once again their priority to support growth, focusing In supporting local demand, stabilizing the housing market and restoring market confidence. Therefore, the overall fiscal and monetary policy is expected to remain expansionary and with a similar intensity to last year.”
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She further adds that: “Quite unlikely, is a widespread increase in monetary support and fiscal policy to boost growth. Economic growth will naturally recover this year thanks to the lifting of restrictions related to Covid-19 that have disrupted people’s lives and the economy for the past three years. Therefore, the government will prefer focus on targeted support in the areas mentioned above.”