China to keep macro policies prudent, effective in 2022: key meeting

China will continue implementing proactive fiscal policies and prudent monetary policies for steady economic progress next year, according to a statement released after the annual Central Economic Work Conference held in Beijing from Wednesday to Friday.

Proactive fiscal policies should be more effective and emphasize precision and sustainability, the statement said.

The meeting highlighted efforts to ensure the intensity of fiscal expenditure and accelerate the spending progress.

It also pledged to implement new tax and fee cut policies, strengthen support for small and medium-sized enterprises, individually-run businesses, manufacturing and risk-defusing, and take a moderately proactive approach in advancing infrastructure investment.

The statement urged local governments to resolutely curb new hidden debt.

Prudent monetary policies should be flexible and appropriate, and liquidity should be maintained at a reasonable and ample level, the statement said.

It underlined efforts to guide financial institutions to ramp up support for real economy, especially for small and micro enterprises, technological innovation and green development.

Fiscal and monetary policies should be coordinated, and cross-cyclical and counter-cyclical macro-regulation policies should be integrated, the statement said.

Efforts should also be made to fully implement the domestic demand expansion strategy and reinforce the endogenous growth momentum, according to the statement.