Su Yue Highlights China's Commitment to Economic Stability Without Large Stimulus Plans

China's Economic Strategy: Stability Without Major Stimulus

In recent discussions led by Su Yue, principal economist for the Economist Intelligence Unit (EIU), it has been made clear that China's commitment to economic stability remains robust, even without the anticipated large-scale stimulus. The National Development and Reform Commission (NDRC) has stated that achieving the growth target of around 5% for this year is feasible without excessive monetary stimulus.

Ongoing Policy Support

• Reassurance from the NDRC: The NDRC has reiterated that existing policies will be effectively implemented to ensure economic growth.
• Incremental Measures: Authorities anticipate further announcements aimed at stabilizing growth and expectations throughout the year.
• Focus on Systematic Measures: Analysts noted that a careful, targeted approach to economic management will be maintained to support growth without rapidly depleting policy tools.

Growth Focused Initiatives

During a study session chaired by Premier Li Qiang, the government sought feedback from economic experts to shape future initiatives. This reflects a broader mandate from the Communist Party leadership to prioritize economic recovery amidst challenges in various sectors.

• Investment in Urban Infrastructure: There are plans for significant investments in urbanization projects, which could further support economic growth.
• Support for SMEs: Financial backing will be extended to small and medium-sized enterprises, enhancing their operational capabilities.

As outlined by Sophie Xu, a retail investor from Shenzhen, there remains optimism in the stock market, particularly following recent policy insights. With analysts forecasting fiscal support up to 3 trillion yuan aimed at invigorating the economy, the prospects for the latter part of the year appear cautiously optimistic.