[Click eStock] "Zhongyanghui, Moderate Level... Willingness for Economic Stimulus"

Ebest Investment & Securities evaluated on the 6th that the China Two Sessions event was at a moderate level and that the Chinese government reiterated its commitment to economic stimulus.

Researcher Baek Gwan-yeol said, "The China Central Government Two Sessions opened on March 4-5, 2024," and added, "The Chinese government set the 2024 gross domestic product (GDP) growth target at 5%, the same as the previous year."

Researcher Baek stated, "The Chinese government pointed out that achieving this year's target will not be easy and ordered each department to actively implement policies," adding, "They emphasized further enhancing the flexibility and timeliness of fiscal and monetary policies."

One of the key implications is the strengthened commitment to economic stimulus. The Chinese government set the fiscal deficit-to-GDP ratio target at 3%. This is lower than the previous year's raised level of 3.8%. However, China also announced plans to issue special government bonds over the next few years, with issuance planned at around 1 trillion yuan this year. This indicates a response to long-term risks such as real estate and local governments. Reconfirmed measures to boost consumption and real estate, as well as the expansion of foreign investment attraction, are also noteworthy.

Researcher Baek said, "This year's Two Sessions resulted in a moderate outcome, with the Chinese government's economic stimulus stance becoming clearer. As can be seen from the stock market returns on the day, downward rigidity was also confirmed," and analyzed, "The conditions for the stock market to continue its upward trend will be the preparation of follow-up policies and whether economic indicators improve according to the effects of these policies."

This content was produced with the assistance of AI translation services.