Beijing plans infrastructure and consumer support after retail sales and investment slumped in April, while exports and housing showed resilience.
China’s April economic data revealed weakness in retail sales and investment, though exports and housing prices provided partial relief. Analysts anticipate targeted fiscal measures, including infrastructure spending, to counter the slowdown without large-scale stimulus.
The government allocated CNY800 billion from this year’s budget for public fixed-asset investments, with further boosts likely. Authorities remain cautious on broad monetary easing, maintaining a 4.6% GDP forecast for 2026, and may reassess policy after Q2 data in July.
Markets expect fine-tuning of fiscal support rather than aggressive intervention, as officials avoid panic-driven measures despite softening indicators.