China Set to Introduce More Measures to Boost Domestic Demand in 2026 -- Market Talk

Dow Jones01-14

0733 GMT - China will roll out a range of subsidies this year to boost domestic demand, with fiscal policy set to take the lead and help lower financing costs in key sectors, HSBC analysts say in a note. While policymakers signaled that the consumer subsidy program will continue, its impact on consumption is likely limited. Plans to expand social welfare based on permanent residence could deliver a more sustained consumption boost. Public investment is also set to increase, with Beijing releasing its first comprehensive plan governing the layout of government investment funds. Meanwhile, China's rollback of export tax rebates could ease trade tensions. HSBC says the government's overcapacity crackdown may require clear antimonopoly guidance, further restrictions on preferential subsidies, and new urbanization initiatives to boost demand. (jason.chau@wsj.com)

 

(END) Dow Jones Newswires

January 14, 2026 02:33 ET (07:33 GMT)

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