As it seeks to combat the effects of a housing market collapse and slower growth, China reiterated that it will strive to keep the economy growing at a stable pace next year.
The Communist Party's annual Central Economic Work Conference committed to ensuring the housing market better satisfies "reasonable" household demand. It also stated that monetary policy will remain flexible and appropriate, and that fiscal policy will be effective, targeted, and sustainable.
The economic conference, led by the Politburo Standing Committee, is a precursor to next year's parliamentary meeting, when detailed targets will be revealed. Analysts are looking for signs of more monetary and fiscal stimulus, as well as if debt and property market controls may be loosened to assist support a weakening economy.
Other highlights from the conference include: officials promised to properly advance infrastructure investment, China will improve effective regulation of capital, It will aid in the development of the private sector, reiterates that houses are meant to be lived in and not for speculation, common prosperity is a long-term process that must be reached in a stable manner.
Beijing is beginning to shift its focus to supporting growth after focusing policy for the most of this year on managing financial risks and decreasing debt in the economy. The elite Politburo leaders signalled a dovish slant in property policy earlier this month, and the central bank's decision to lower the reserve requirement ratio for banks has fuelled hopes of more monetary easing.
Because of a worsening property market slump, weak consumption growth, and recurring outbreaks of Covid-19, which have harmed businesses and consumers' confidence, the economy has slowed in recent months. Economists predict that growth would slow to 3.1% in the current quarter, down from 7.9% in April-June and 4.9% in the previous quarter.