China's Leadership Commits to Economic Growth, Housing Market Stability

Chinese leaders pledged to meet the 2024 economic growth target and address housing market declines. This comes after the release of major stimulus measures. The Politburo underscored the urgency of fiscal and monetary policy adjustments and committed to supporting government investments and addressing public concerns.

In a significant move, Chinese leaders on Thursday committed to achieving the 2024 economic growth target while tackling ongoing declines in the housing market, state media reported. This declaration followed closely on the heels of the largest economic stimulus package introduced by authorities since the COVID-19 pandemic.

The Politburo, the Communist Party's top decision-making entity, emphasized the need for robust "counter-cyclical" fiscal and monetary policy adjustments during their deliberations. They highlighted the emergence of new economic challenges, which necessitated a heightened sense of "responsibility and urgency."

In terms of actionable steps, the Politburo committed to ensuring necessary fiscal spending and leveraging ultra-long special sovereign bonds and local government special bonds to back government investment. They also outlined measures to stabilize the property market, including controlling new commercial home construction, adjusting housing restriction policies, and lowering existing mortgage rates. The central bank's governor indicated forthcoming reductions in the reserve requirement ratio and assertive interest rate cuts to spur income and consumption.

(With inputs from agencies.)