MARKET OVERVIEW - Nomura: China May Implement Stronger Financial Measures Next Year

Foreks - Nomura analysts believe that China may adopt stronger fiscal measures next year. In a note, they state that during the December Politburo meeting and the Central Economic Work Conference, Chinese policymakers pledged to adopt a more proactive fiscal policy, similar to the language used in early 2020 when combating the pandemic. Nomura forecasts a 3.6 trillion yuan increase in borrowing for 2025 and expects the fiscal deficit to rise from this year's 3.0% to 4.0% of GDP. The brokerage reiterates its view that China is not in a normal downturn cycle, suggesting that more than the recent stimulus may be needed to revitalize the economy.