China will implement counter-cyclical adjustments “in a timely and appropriate manner”, while the pro-active fiscal policy will become more forceful and effective, and the prudent monetary policy will be neither too tight nor too loose, it said.
For this year, the government has unveiled tax and fee cuts amounting to 2 trillion yuan ($424 billion) to ease burdens on firms, while the central bank has cut banks’ reserve requirement ratios (RRR) five times since early 2018 to spur lending.
Further policy easing is widely expected.
On Friday, the politburo reiterated that the government will in effect support the private economy and the development of small- and medium-sized firms.
Authorities would strike a balance between stabilising economic growth, promoting reforms, controlling risks and improving people’s livelihoods, the politburo said.
China would push forward structural deleveraging and prevent speculation in the property market, it said.
“We should adhere to the orientation that houses are used for living, not for speculation,” the politburo said, reaffirming a city-based approach in controlling the property sector.
China’s economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed last week, as sluggish demand at home and abroad weigh on activity despite a flurry of policy support measures.