"The measures listed by the meeting will improve confidence of entrepreneurs, encouraging them to increase investment, as well as encourage consumption of individuals," he said. "The fiscal policy will be very significant in boosting domestic demand and stabilizing economic growth in the next year," Bai said.

As local governments are encouraged to issue more special bonds next year, financing for infrastructure construction will speed up, which will be a key measure in implementing the proactive fiscal policy, he added.

Monetary policy should be "prudent" and strike an "appropriate" balance between tightening and loosening, according to Xinhua.

The term "neutral", which appeared in the wording of previous high-profile meetings describing monetary policy, was dropped from Friday's statement — a change that analysts said signals moderate loosening of the monetary policy stance.

The loosening would help maintain sufficient liquidity in the financial sector, which could keep corporate financing costs at a lower level, said Guan Tao, a researcher at the China Finance 40 Forum and a former senior official with the State Administration of Foreign Exchange.