DeepDive: Signs of Stimulus

With the abrupt lifting of zero-Covid restrictions in China, focus has now shifted to stimulating the economy. Our quantitative textual analysis in this DeepDive edition, which focuses on Politburo readouts between 2012 and 2022, identifies patterns in relation to fiscal and monetary policy to provide an assessment of where policies may be headed next year. It also addresses concerns about a potential return of anti-graft campaigns. While the Politburo gets together about once a month, the readouts analysed are from the gatherings in April, July and December, which predominantly discuss the current state and outlook of the economy.