China to add fiscal stimulus in early 2022

According to the economists surveyed by Bloomberg, China is likely to begin expanding fiscal stimulus in early 2022 after the country’s top officials outlined counteracting growth pressures and stabilizing the economy as their key goals for the next year.

Key takeaways

“Curbs on the property industry are expected to remain while there could be fewer regulatory surprises.”

“Economists forecast growth to slow to 3.1% in the current quarter, a deceleration from 7.9% in the April-June period and 4.9% in the last quarter.”

“Beijing is also expected to guide banks to issue loans at a faster pace next year, after it omitted references to efforts to control debt levels in the economy from its summary of the meeting.” 

Market reaction

USD/CNY was last seen trading at 6.3685, down 0.11% on the day.