In a departure from previous policy announcements – characterised by a steady trickle of incremental changes – China is rallying its top economic planner to move in step with other state agencies as Beijing mobilises everything at its disposal to achieve headline targets and revive consumer and investor confidence.
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At a press conference scheduled for Tuesday morning, observers anticipate the National Development and Reform Commission (NDRC) will unveil a wide-ranging action plan. Timed for the first workday after a weeklong break and set to be led by commission chairman Zheng Shanjie, the conference has stoked intense speculation on the part of markets and analysts alike.
Measures to boost consumption and expedite the green transition are among those predicted to take priority. Retail sales rose 2.1 per cent year on year in August – slower than the 3.4 per cent growth observed in the first eight months of the year – as weak sentiment and uncertainties in the stock markets and real estate weighed on spending.
“China needs a big announcement to move out of a cul-de-sac, or an impasse,” said Alicia Garcia-Herrero, chief economist for Asia-Pacific at French investment bank Natixis in Hong Kong. “China was doing this already, but with less conviction. It has taken [a long time] for Beijing to get its act together. Now the market is expecting much more.”
In advance of the conference, Hong Kong’s Hang Seng Index rose 1.49 per cent Monday afternoon to 23,077, and the Hang Seng Tech Index gained 2.73 per cent.
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A policy bundle of the size some have projected would make the commission the latest of several high-level state bodies to publicise its sweeping remedy for China’s ailing economy. The wave began in earnest on September 24, when China’s central bank and financial and securities regulators launched a flurry of reforms to stem a decline, particularly in stock exchanges and property markets.