BEIJING, Sept. 28,
2024 /PRNewswire/ -- The Political Bureau of the
Communist Party of China (CPC)
Central Committee held a meeting on Thursday to analyze the current
economic situation of China and
make further plans for economic work. Xi Jinping, general secretary
of the CPC Central Committee, presided over the meeting, the Xinhua
News Agency reported.
While noting the fundamentals of the Chinese economy, and
favorable conditions such as a vast market, strong economic
resilience and great potential remain unchanged, the meeting
emphasized it is necessary to take a comprehensive, objective, and
calm view of the current economic situation, confront difficulties
directly, and remain confident.
Following China's recent
rollout of numerous policy measures aimed at boosting economic
growth, the Thursday meeting further highlighted the country's
determination to achieve annual development targets, providing
further confidence in China's
economic trajectory, and reinforce the intensity and effectiveness
of these policies, economists said on Thursday.
The top meeting noted that the Chinese economy has posted a
generally stable performance this year, making progress while
maintaining stability. New quality productive forces have developed
steadily, and solid efforts have been made to ensure people's
livelihoods. Positive progress has also been achieved in preventing
and defusing risks in major areas, according to Xinhua.
Notably, the meeting called for effectively implementing
existing policies, stepping up efforts to roll out incremental
policies, further tailoring policy measures to be more targeted and
effective, and striving to meet this year's economic and social
development goals.
Comprehensive, targeted efforts
"The economic policies discussed at the meeting are
comprehensive and targeted, covering areas such as fiscal policy,
monetary policy, real estate, and living standards. The policy
intensity is significantly greater, demonstrating the country's
resolve to boost economic growth," Xi Junyang, a professor at the
Shanghai University of Finance and
Economics, told the Global Times on Thursday.
Xi Junyang noted that the Chinese economy has maintained
relatively favorable conditions, and the positive effects of
various policy measures will further boost optimism for the growth
prospects, despite some downward pressure.
In addition to an overall analysis of the Chinese economy, the
meeting also emphasized policy measures in various critical areas.
On macro-policies, the meeting called for efforts to strengthen
counter-cyclical adjustments by leveraging fiscal and monetary
policies, including lowering the reserve requirement ratio (RRR)
and implementing significant interest rate cuts.
On Tuesday, Chinese officials rolled out a package of major
policy measures to support the country's economy, the housing
market and the stock market. Crucially, it was announced that
China would cut the RRR - the
amount of cash that banks are required to hold as reserves - by 0.5
percentage points in the near future, and RRR could be cut by
another 0.25-0.5 percentage points within the year depending on the
market liquidity situation. Additionally, the interest rate of
seven-day reverse repos will be reduced from 1.7 percent to 1.5
percent.
Then on Wednesday, the People's Bank of China, the country's central bank, announced
that it would cut the rate on 300 billion
yuan ($54.7 billion) worth of
one-year medium-term lending facility (MLF) loans to some financial
institutions to 2 percent, from the previous 2.3 percent.
The policy measures have significantly boosted confidence, with
markets responding positively to the announcements. Amid the strong
policy signals, Chinese stocks closed significantly higher on
Thursday, with the benchmark Shanghai Composite Index surging 3.61
percent to above the 3,000 level, while the Shenzhen Component
Index rose by 4.44 percent.
"The meeting marked another momentous point in that following
the meeting, policy intensity will be greatly strengthened, further
boosting the growth trend," Tian
Yun, a veteran economist based in Beijing, told the Global Times on Thursday.
"It also provides a clear economic outlook for everyone."
The Political Bureau meeting also called for efforts in various
key aspects to further boost the Chinese economy, including the
real estate market, the capital market, and the support of
enterprises.
In addressing the real estate market, efforts must be made to
address public concerns, adjust housing purchase restrictions, and
reduce existing mortgage interest rates, improve land, fiscal and
taxation, financial and other policies, and promote the formation
of a new model of real estate development, the meeting
concluded.
The meeting also called for efforts to boost the capital market
including actively guiding medium- and long-term funds into the
market, and removing barriers for social security, insurance, and
wealth management funds to enter the market.
It is necessary to support mergers and acquisitions and
reorganizations of listed companies, steadily promote the reform of
public funds, and study and introduce policies and measures to
protect small and medium-sized investors, according to the Thursday
meeting.
Also on Thursday, the Office of the Central Financial Commission
and the China Securities Regulatory Commission jointly issued
guidelines on guiding medium and long-term funds into the capital
market in a bid to boost overall capital market.
The meeting also pointed out that efforts are needed to help
enterprises to overcome difficulties, including the adoption of law
for the promotion of private economy. It also urged to increase
income for low- and middle-income groups, and cultivate new
consumption formats. Greater efforts are also needed to attract and
stabilize investment, including the rapid implementation of
reforms, particularly in opening up the manufacturing sector to
foreign investment.
Positive impact
"There are many measures for various aspects of economic and
social development, and the focus on policy intensity is quite
significant," Xi Junyang said. "All of these measures certainly
have a positive impact on the economy."
With strong policy support and solid economic fundamentals, many
Chinese economists said the country is on track to achieve its
annual growth target of around 5 percent.
"With such policy intensity, I expect the fourth-quarter GDP
growth rate will reach above 5 percent, which is crucial for
achieving the annual growth target," Tian said.
In addition to major economic measures, the Political Bureau
meeting on Thursday also called for efforts to safeguard people's
livelihoods, focusing on key groups such as new college graduates,
migrant workers, and those newly lifted out of poverty.
Notably, on Wednesday, the CPC Central Committee and the State
Council issued a 24-point guideline to implement an
employment-first strategy aimed at improving job quality and
achieving reasonable growth in employment numbers.
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SOURCE Global Times