China’s commitment to economy not undermined, analysts say in absence of large stimulus

China’s top economic planner has solidified Beijing’s commitment to bolstering the economy, by reiterating confidence in achieving the full-year growth target, while the lack of a new big-bang stimulus that the markets had expected does not change the supportive policy direction, according to analysts.

Pundits added that more measures may be in store, as authorities have signalled that reviving the economy is the top priority.

“It is clear that Beijing does not want to exhaust its policy tools too quickly. There has been repeated emphasis on systematic, targeted and precise measures, and the overall message of the press conference remains positive,” said Su Yue, principal economist for China with the Economist Intelligence Unit (EIU) market research organisation.

At the widely watched conference on Tuesday, the National Development and Reform Commission (NDRC) expressed confidence that the growth goal of “around 5 per cent” for the world’s second-largest economy this year remained attainable with policy support, without unveiling highly anticipated large-scale additional stimulus.

Disappointment resulting from the lack of fresh stimulus firepower from the NDRC, after the quick-fire roll-out of easing at the end of September, should not undermine the significance of the pledge for an effective implementation of what is already in place, the analysts said.

“[The NDRC has] stressed that development is the key to addressing issues, and in the Chinese context, ‘development’ essentially means economic growth,” Su said.