**Despite Economic Headwinds, China's Fiscal Policy to Turn More Favorable in 2025**
According to recent reports, China's economy encountered increased difficulties in the past year, with slower-than-expected tax growth and a significant decline in land sales revenue. However, the implementation of a comprehensive fiscal policy package, particularly the 12 trillion yuan debt-to-equity swap program, helped to stabilize the country's finances overall. The nationwide fiscal working meeting has now outlined the government's more proactive fiscal policy for 2025, which includes increasing the fiscal deficit ratio, issuing larger volumes of government bonds, and boosting government spending. The focus will be on allocating funds to people-friendly and consumer-promoting sectors, while strengthening efforts to mitigate risk in key areas and drive a stable economic growth in the coming year. Furthermore, the government has vowed to usher in a series of robust fiscal and monetary measures to bolster the economy and maintain sustained growth.