From CNBC: 2025-04-25 04:33:00

Chinese President Xi Jinping chaired a meeting to discuss helping struggling businesses amid increased external shocks. Tensions with the U.S. have escalated, leading to major banks cutting China GDP forecasts. China plans financial support and interest rate reductions, with a focus on middle and lower-income groups, tech development, and fiscal policy flexibility.

The Politburo emphasized targeted measures to support businesses, including interest rate reductions and financial support. China raised its deficit target to 4% of GDP and local governments and businesses are redirecting exports to the domestic market. Beijing is prepared to launch new policies to address external economic shocks, but is not rushing large stimulus measures.

The CSI 300 and Hang Seng Index reacted to the Politburo meeting statement. The meeting reaffirmed State Council policies and government ministries’ collaboration. Policymakers are equipped to navigate uncertainties and a new private sector law is expected to improve the business environment. The National People’s Congress will review the new law to support the private sector.

Read more: China pledges to ramp up targeted support for businesses as U.S. trade war hits