国内英语资讯:China pledges stability, reform in 2017 as key economic meeting ends_时事

国内英语资讯:China pledges stability, reform in 2017 as key economic meeting ends

Zhou Hao, Senior EM Economist Asia with Commerzbank, expects the target to be at 6.5 percent for 2017.

Despite a troublesome start, the Chinese economy is ending 2016 on a firm footing, with encouraging signs of growth being on track to meet the this year's target.

In the first three quarters, the economy expanded 6.7 percent, steady with the first half of the year and within the government's target range of between 6.5 and 7 percent.

However, Friday's statement warned of problems in the economy, including persistent industrial overcapacity and accumulating financial risks.

The key to resolving structural imbalance lies in pushing supply-side reform, the meeting agreed, specifying five major tasks: cutting industrial capacity, destocking, de-leveraging, lowering corporate costs and improving weak links.

Fiscal policy should be more proactive and effective and budgets better planned to accommodate supply-side structural reform, cutting business taxes and ensuring incomes.

On the risk side, curbing asset bubbles will assume more importance in 2017 as the property market has raised fears of risks to financial stability.

To combat downward pressure, China adopted a multi-pronged growth policy last year, including cuts in interest rates and lower deposit requirements.

The stimulus has fueled growth in real estate and investment, two sectors that have proved critical growth drivers, but not without unwanted outcomes. For example, house prices in major cities have soared in an unreasonable manner and required tightening measures.