Nomura China's chief economist Lu Ting believes that next year's fiscal policy will be more proactive, but the direction of fiscal spending is more important than the scale of fiscal stimulus itself. Money should be spent on solving the most critical issues, particularly in clearing up the debt chain accumulated over the past few years, especially in the Real Estate Industry. Next year's deficit rate will be significantly higher than this year (the fiscal deficit rate in 2024 is expected to be 3%), possibly reaching around 4%; the issuance quota for ultra-long-term government bonds is expected to increase from 1 trillion yuan this year to 1.5 trillion yuan; the issuance quota for new local government special Bonds is also expected to see a noticeable increase. Lu Ting noted that government financing will certainly rise significantly next year, with an increase of about 3.5 trillion yuan compared to this year, which is about 2.6% of GDP, reflecting a more proactive fiscal policy. Regarding monetary policy, Lu Ting stated that under the current strong devaluation pressure on the yuan, there is limited room for interest rate cuts. He anticipates two interest rate cuts next year, totaling a reduction of 0.3 percentage points.