Beijing: Chinese officials are facing pressure to back up their reassuring rhetoric on the economy with more concrete action.
Shares in China slid for a third week in a row, with the yuan trading near an eight-month low and concerns rising over the country’s credit market. while the premiere li qiang Promising Thursday to “leave no time” in implementing the targeted stimulus, he offered none of the specifics investors were demanding.
During a meeting with economists, Li said the government would introduce a package of “targeted, comprehensive and well-coordinated” measures to stabilize growth and employment and contain risks “in a timely manner”. A readout of the event was published by the official Xinhua news agency.
Li also said that the country is “in a critical period of economic reform and industrial upgrading.” Those comments suggest that officials are willing to stay on the course set at an economic meeting between top leaders in April, said Bruce Pang, chief economist at Jones Lang LaSalle Inc.
“Policies are still being made, but no big stimulus is likely,” Pang said. He said the government needs to strike a balance between stabilizing growth in the short term and avoiding any long-term structural risks.
Shares in China and Hong Kong declined on Friday amid broader weakness in Asia. A gauge of Chinese shares listed in the financial hub fell as much as 0.7% in early trade, while the onshore CSI 300 index is down about 0.4%. The offshore yuan edged up 0.1% to 7.2481 per dollar, set for its first weekly gain in three.
Li also indicated that officials are committed to addressing the pain felt by private and foreign firms, which have seen their profits decline and market access restricted in recent years amid regulatory action and rising US-China tensions. Is. A “regular communication mechanism” would be built with the region, he said without giving further details.
Expectations of a government stimulus announcement have been rising in recent weeks as the pace of reform has slowed. The property market is weak, youth employment is at a record high and household and business confidence remains sluggish.
The central bank last month cut policy interest rates for the first time in nearly a year, indicating looser monetary policy. But the policy lending rate was cut by only 10 basis points, and additional measures have been marginal, such as steps to increase tax incentives for people to buy electric cars. Economists have been warning that the scope of any stimulus measures will be limited.
Meanwhile, investor gloom grew after a private survey indicated weak momentum in services sector growth, and geopolitical tensions escalated after China announced export controls on key metals.
The Communist Party’s all-powerful Politburo will get a chance to discuss the stimulus later this month when it is expected to gather for a major economic meeting. The authority’s July meeting is usually when it sets economic policy for the rest of the year.
Shares in China slid for a third week in a row, with the yuan trading near an eight-month low and concerns rising over the country’s credit market. while the premiere li qiang Promising Thursday to “leave no time” in implementing the targeted stimulus, he offered none of the specifics investors were demanding.
During a meeting with economists, Li said the government would introduce a package of “targeted, comprehensive and well-coordinated” measures to stabilize growth and employment and contain risks “in a timely manner”. A readout of the event was published by the official Xinhua news agency.
Li also said that the country is “in a critical period of economic reform and industrial upgrading.” Those comments suggest that officials are willing to stay on the course set at an economic meeting between top leaders in April, said Bruce Pang, chief economist at Jones Lang LaSalle Inc.
“Policies are still being made, but no big stimulus is likely,” Pang said. He said the government needs to strike a balance between stabilizing growth in the short term and avoiding any long-term structural risks.
Shares in China and Hong Kong declined on Friday amid broader weakness in Asia. A gauge of Chinese shares listed in the financial hub fell as much as 0.7% in early trade, while the onshore CSI 300 index is down about 0.4%. The offshore yuan edged up 0.1% to 7.2481 per dollar, set for its first weekly gain in three.
Li also indicated that officials are committed to addressing the pain felt by private and foreign firms, which have seen their profits decline and market access restricted in recent years amid regulatory action and rising US-China tensions. Is. A “regular communication mechanism” would be built with the region, he said without giving further details.
Expectations of a government stimulus announcement have been rising in recent weeks as the pace of reform has slowed. The property market is weak, youth employment is at a record high and household and business confidence remains sluggish.
The central bank last month cut policy interest rates for the first time in nearly a year, indicating looser monetary policy. But the policy lending rate was cut by only 10 basis points, and additional measures have been marginal, such as steps to increase tax incentives for people to buy electric cars. Economists have been warning that the scope of any stimulus measures will be limited.
Meanwhile, investor gloom grew after a private survey indicated weak momentum in services sector growth, and geopolitical tensions escalated after China announced export controls on key metals.
The Communist Party’s all-powerful Politburo will get a chance to discuss the stimulus later this month when it is expected to gather for a major economic meeting. The authority’s July meeting is usually when it sets economic policy for the rest of the year.