China Strengthens Policy Coordination to Boost Economic Momentum

People's Daily reports that an executive meeting of the State Council held in late September stressed the need to strengthen counter-cyclical macroeconomic adjustments. In addressing issues occurring in current economic operations, the meeting underscored the importance of deploying existing, incremental, and reserve policies to stabilize the macroeconomic climate, support predictable policy continuity, and fulfill annual economic and social development targets. To maximize existing policies, departments must accelerate the issuance and utilization of bonds, advance construction on major projects specified in planning frameworks, and carry out renovations on aging reservoirs and grain depots. Authorities are directed to strengthen project preparation, optimize fund allocation to avoid idle capital, implement interest subsidies to expand investment and consumption, and conduct through-train supervision from fund sources to end use. Recent incremental measures introduced by departments include reducing pledged supplementary lending interest rates, raising relending quotas, providing mortgage interest subsidies for residents, and offering financial support for service industry development. Future incremental policy formulation requires targeted fiscal spending focused on people-oriented investment and social security guarantees, combined with timely economic monitoring and early warnings. Reserve policy research aims to lift consumer spending in alignment with economic and social development goals. Key initiatives involve optimizing coordinated fiscal and financial measures, expanding the scope of interest subsidies, adding handling agencies, and encouraging qualified localities to pilot long-term mechanisms that spur private investment and residential consumption.

The overarching deployment across existing efficiency, incremental support, and visionary reserve policies signals policy certainty against external uncertainties, providing support to stabilize market expectations and drive development.