China’s Politburo: Will continue to implement prudent monetary policy

Following the meeting of China’s Communist Party's Politburo on Monday, Chinese state media released the readout of the meeting.

Key takeaways

China's economy faces new difficulties and challenges.

Will continue to implement prudent monetary policy.

Will continue to implement proactive fiscal policy.

Will implement macro adjustments in a precise and forceful manner.

Keep Yuan exchange rate basically stable.

Domestic demand is insufficient.

Some companies face difficulties in operations.

Will adjust and optimise property policies at appropriate time, promote sound and stable development of property market.

To meet demand of rigid and improving housing needs.

Will effectively prevent risks in local govt debt.

Will form and carry out basket of measures to resolve local govt debt issues.

Will continue to deepen reform and opening up, improve development environment for private firms.

Will promote healthy and sustainable development of platform companies.

Will promote secure development of artificial intelligence.

Will actively expand domestic demand.

Will boost consumption of auto, electronics and household products, promote tourism consumption.

Market reaction

The Chinese proxy, the Australian Dollar, seems to receiving a fresh boost from the above headlines. AUD/USD is trading at daily highs near 0.6750, adding 0.27% on a daily basis, at the press time.