CHINA DAILY
“Market sentiment and expectations are likely to have an impact on demand,” he said. “Currently, softening consumption and lackluster investment have something to do with market expectations. “In light of the current situation, the key to keeping economic growth stable and sustainable is to stabilize and improve market expectations while enhancing risk management.” In a note issued last month ahead of the two sessions-the annual meetings of China’s top legislature and political advisory body, which will begin in Beijing later this week-Liu said full assessments shall be made before public policies are rolled out, with stable growth and employment the priorities. “With noneconomic factors having an increasing impact on growth, all kinds of public policies, both economic and noneconomic ones, must work in sync to maximize the macro policy effect and deliver more tangible outcomes,” he said.
In a recently released monetary implementation report for the fourth quarter of last year, the People’s Bank of China, China’s central bank, said it would work to keep liquidity reasonably ample and step up financing support for key sectors and weak links of the economy. It said it would meet the reasonable financing demands of the real economy while not resorting to any flood-like stimulus. Some experts expect the intensity of fiscal and monetary policies will be increased this year as keeping growth stable has been confirmed as the priority for economic policies. Zhu Ning, deputy dean of the Shanghai Advanced Institute of Finance, said China’s economic growth faces continuing challenges this year, mainly induced by a slowing property sector that will also add to challenges in guarding against financial risks.
