By ZHAO Wei, JIA Dongxu and Hou Qiannan

Since late September, China has been intensifying its macroeconomic policies. The financial policy has introduced a new iteration of "three arrows", namely credit, bonds and equity, while fiscal policy has rolled out incremental measures on four aspects. During a meeting of the Political Bureau of the CPC Central Committee in September, policymakers discussed the economic situation, and highlighted the need to "intensify counter-cyclical adjustments of fiscal and monetary policies" and "lower the reserve requirement ratio, alongside significant interest rate cuts". These remarks reflect a notably more proactive stance than prior meetings. Earlier, at a press conference on financial support for high-quality development, new financial measures - "three arrows" were unveiled, including reducing the reserve requirement ratio and policy rates, cutting mortgage rates for existing home loans, and introducing new monetary tools to stabilize the stock market. Shortly thereafter, the Ministry of Finance of the People's Republic of China introduced incremental measures across four areas, including significantly raising the debt ceiling to help local governments manage implicit debts; issuing special government bonds to support state-owned commercial banks in replenishing core tier-one capital; leveraging a mix of special bonds, special funds, and tax policies to stabilize the real estate market; and boosting support for key demographics.