Editorial | Time will show worth of strategy laid out by China’s top economic planner
Plan unveiled by the National Development and Reform Commission adds to confidence that China’s 5 per cent growth target can be met
China has been battling this year to revive weak consumer and investor confidence and spur the economy to stronger growth. One by one, top regulators and ministries have been announcing stimulus and reforms.
The biggest came in late last month courtesy of the central bank, which slashed reserve ratio requirements and cut mortgage rates in a quantitative easing “bazooka”. Markets rallied.
Yesterday it was the turn of the National Development and Reform Commission (NDRC). Its chairman, Zheng Shanjie, announced China would keep issuing ultra-long treasury bonds next year to support major projects and bring forward to this year a 100 billion yuan (US$14.2 billion) investment on key strategic areas originally budgeted for 2025.
For markets expecting another specific policy bazooka from the news conference just after the National Day holiday, there was certain disappointment. Mainland markets rose but Hong Kong fell.
Patience may be required. The NDRC is in charge of planning for an economy geared to a five-year cycle, so hopes of swift, massive measures were perhaps misplaced.
Indeed, there was positive reassurance the direction had not changed, and the NDRC was doing its part to keep up the steady drumbeat of momentum.
