China’s economic powerhouses, tasked with lion’s share of GDP growth, vow deeper reforms
- Measures rolled out by local authorities across China could offer a glimpse at national policies expected at midyear Politburo meeting
China’s economic powerhouse provinces are benchmarking their first-half performances against the national goal while redoubling efforts to contribute to the nation’s economy, after central leadership mandated in their recent third plenum communique that this year’s targets must be attained.
Measures being rolled out by some regional authorities – including steps to boost domestic demand and prepare projects awaiting long-term bond financing – could be a hint of national policies to be rolled out at an upcoming Politburo meeting, analysts said.
On Tuesday, the central province of Henan released a 40-point circular calling to “persistently unleash effective demand”, and provincial leaders vowed to spur growth by adopting measures that focus on infrastructure projects and new local government special bond issuances.
Henan also has a batch of strategic projects in the pipeline to create favourable conditions and obtain support from ultra-long-term special treasury bonds. Other measures include expanding the home “trade-in” programme in its provincial capital.
The Chinese economy saw slower-than-expected growth of 4.7 per cent in the second quarter, casting doubt on whether the annual target of around 5 per cent can be reached.
