More Signals on Stimulus Expected from China's Annual Central Economic Work Conference

Forex - Allan von Mehren from Danske Bank mentioned that China might send more signals regarding stimulus at the annual Central Economic Work Conference. The event, which is attended by Xi Jinping and other leaders, sets economic priorities for the upcoming year. Allan von Mehren stressed that while a growth target may not be formalized until March, it is likely to be set. This target will be closely monitored. Government advisors have stated that the 2025 target should be around 5%, and von Mehren indicated that this would mean continuity in stimulus measures and confidence in the economy. However, he also highlighted the potential reluctance to achieve such a high target if Trump significantly escalates the trade war, raising the risk that the target may not be met. "However, in my view, companies and local governments need to demonstrate that growth is a high priority, so my bet is on a target of 5%," he said.