Chinese stocks declined Tuesday after the country's Politburo called for boosting domestic demand for 2026 and hinted at a more metered fiscal policy.
The Shanghai Composite Index, the main gauge of Chinese stocks, lost 0.4% or 14.56 points to reach 3,909.52. The Shenzhen Component Index also fell by 0.4% or by 52.63 points to 13,277.36.
"We will adhere to the principle of prioritizing domestic demand and build a strong domestic market," according to a readout by the Politburo released by Xinhua News Agency Monday.
China also said, "a more proactive fiscal policy and a moderately loose monetary policy should continue to be implemented, giving full play to the integrated effect of existing and new policies, and increasing counter-cyclical and cross-cyclical adjustments."
Beijing is also signaling it is attempting to balance the loosening fiscal and monetary policy and ensuring debt sustainability is in check, Bloomberg reported separately, citing BNP Paribas Chief China Economist Jacqueline Rong.
Investors are awaiting the U.S. Federal Reserve's expected rate cut this week, Reuters reported separately.
In corporate news, JAC Motor's (SHA:600418) shares jumped 3% during market close. Its total output jumped 13% in November while sales increased 5.9% during the month.
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