The annual Central Economic Work Conference (CEWC) had come to an end. The conference statement said that China will strengthen counter-cyclical adjustments in its macro policy, continue to implement a proactive fiscal policy and a prudent monetary policy. A larger scale of tax and fee cuts will be carried out in order to boost consumer confidence and household spending. Furthermore, China will encourage technological innovation within manufacturing industry, accelerate the commercial use of 5G networks and also encourage investment in infrastructure of intercity transport, logistics, etc. However, the government failed to meet market expectation as no specific stimulus measures were carried out. A lack of stimulus measures, coupled with a slowing global economy, we anticipate more investors will step out of the volatile market until more specific stimulus measures are officially carried out. Investor should be suggested to remain low risk exposure and further reduce positions in equities if market presents a decent rebound.
Xinhua News Agency