CBN丨China to boost fiscal support for consumption, other key areas in 2025

Hi everyone. I’m Stephanie LI.Coming up on today’s programChina will implement a more proactive fiscal policy to boost demand and living standards next year;Central SOEs invest 2 trillion yuan in emerging industries in first 11 months.Here’s what you need to know about China in the past 24 hours China's Ministry of Finance unveiled plans to implement a more proactive fiscal policy in 2025, including increasing the fiscal deficit-to-GDP ratio and issuing larger-scale government bonds, as outlined in an official statement after the ministry's two-day national financial work conference held from Monday to Tuesday.China will implement a more proactive fiscal policy next year, with sustained and intensified efforts to deliver a well-coordinated package of measures aimed at ensuring economic stability and driving growth, said Finance Minister Lan Fo’an at the meeting."First, we will increase the fiscal deficit ratio, increase spending, and accelerate expenditure progress," said Lan.China set its deficit-to-GDP ratio at 3 percent for 2024 and the government deficit at 4.06 trillion yuan, an increase of 180 billion yuan from the 2023 budget figure. In 2024, 3.9 trillion yuan of special-purpose bonds for local governments would be issued, an increase of 100 billion yuan over 2023. In addition, 1 trillion yuan of ultra-long special treasury bonds was issued in 2024, according to this year's government work report released in March. In the Central Economic Work Conference, which was held earlier this month, Chinese leaders decided priorities for the economic work in 2025, including setting a higher deficit-to-GDP ratio and ensuring that its fiscal policy is continuously forceful and more impactful. Also, it said China will increase the issuance of ultra-long special treasury bonds and continue to support projects for implementing major national strategies and building security capacity in key areas.The ministry’s conference also highlighted boosting domestic demand as a key focus for 2025, aligned with the strategic objectives outlined at the Central Economic Work Conference.Key fiscal priorities for next year also include prioritizing people-centered policies, encouraging consumption and driving economic growth, as well as increasing transfers to local governments.China will also strive to prevent and resolve risks in key areas, and promote stable fiscal operations and sustainable development. Fiscal payments transfers to local governments will also be further increased to help strengthen local fiscal resources, the statement said.This meeting also called for the effective implementation of existing and new fiscal policies, promoting the development of science and technology leadership, and taking proactive measures to mitigate major risks in critical areas to achieve new progress and effectiveness in fiscal work.Greater Bay Area, Greater futureMacao is set to present a fireworks show in celebration of the 25th Anniversary of the Establishment of the Macao SAR at 9 pm on Wednesday. The event will unfold over the Macao Tower seafront, lasting approximately 15 minutes, and spectators will be able to watch at several prime locations in Zhuhai, Hengqin, and Macao.Shenzhen Futian Station and Hong Kong's West Kowloon Station will add 144 high-speed rail trips from Dec. 24 to Dec. 29 to meet the demand for public travel between the two places during the Christmas holidays travel rush, according to the China Railway Guangzhou Group on Tuesday.Next on industry and company newsChina's centrally administered state-owned enterprises (SOEs) invested 2 trillion yuan in strategic emerging industries in the first 11 months of 2024, marking an 18.7 percent year-on-year increase, data from the State-owned Assets Supervision and Administration Commission (SASAC) showed. CATL yesterday unveiled the Bedrock Chassis, the world’s first ultra-safe skateboard chassis. Engineered to endure 120 km/h frontal impacts without catching fire or exploding, it sets new standards for intelligent chassis safety, ensuring protection across all scenarios and speeds, the Chinese battery giant said.China Post set up a drone firm in Beijing with a registered capital of 100 million yuan, according to corporate info tracker Aiqicha. The new business will focus on R&D, manufacturing, and sales of drones, robots, and AI products.Shanghai has become a popular destination for South Korean citizens among other overseas tourists after China extended its visa-free policy to more countries last month. The number of travel bookings from South Korea to Shanghai has surged 180 percent since the visa exemption policy kicked in on Nov. 8, according to data from Chinese travel agency Ctrip.  Wrapping up with a quick look at the stock marketChinese stocks dipped on Wednesday. The benchmark Shanghai Composite ended flat while the Shenzhen Component slid 0.6 percent.