China post Central Economic Work Conference: bigger fiscal spending in 2025 to boost consumption, but no concrete details

– The two-day Central Economic Work Conference has ended with an announcement that was broadcasted by the state-run Xinhua News: officials will raise the fiscal deficit target in 2025 for only the second time in a decade to help lift consumption "vigorously" and stimulate overall domestic demand.

– The government also vowed to strengthen the social safety net with broad promises to bolster health care and pensions.

– While the tone of the conference was very supportive of growth, it lacked concrete details on policies, said Larry Hu, head of China economics at Macquarie Group (Bloomberg)

– The work conference traditionally only offers broad strokes of policy focus and direction without revealing much details. Specifics such as the growth target or the government’s budget will only be unveiled in March 2025 during the annual legislative sessions.

– The Hang Seng Index December futures fell as much as 1.9% overnight to 20,219 before this morning's 915AM open.

– China's focus on domestic consumption comes on the back of trade war fears since the re-election of Donald Trump which may lead to decline in Chinese exports

– Investors keen to trade any volatility in the China-related HSI may wish to consider using call and/or put warrants to do so.

– See how the trending call and put warrants move in the Live Matrix: