A meeting of the senior-most body of the Chinese Communist Party has said that Beijing will refrain from the use of the property market as a means of achieving short-term stimulus.
The meeting of the CCP Politburo convened on 30 July said that there are currently no “major irrigation” policy intentions, and that economic policy in the second half of 2019 will stress stable macro-economic policy alongside the effective implementation of active fiscal policy and stable monetary policy.
The Politburo also made reference for the first-time to “not making real estate a means of short-term stimulus of the economy.”
Supply-side structural reforms will remain a key areas of focus for China’s economic regulators, with more medium and long-term measures expected including upgrades to industrial infrastructure and industry chains, support for the development of private enterprise, and the expansion of external opening.
The meeting said that at present the Chinese economy faces new risks and challenges, and that downwards pressure on the domestic economy is on the increase.
According to the Politburo meeting it will be necessary to “strengthen awareness of hidden hazards, grasp broad, long-term trends, seize key contradictions, excel at transforming crisis into opportunity and properly attend to one’s own affairs.”