Lujiazui Photo:VCG

China’s economy is projected to grow around 5 percent in 2024, contributing to nearly 30 percent of global growth, Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs said on Saturday.  

Han made the remarks at an annual economic conference held by the China Center for International Economic Exchanges.

Han said that China’s economy has achieved remarkable progress this year, and is on track to meet its main economic and social development goals. 

He noted that the employment, prices, and international balance of payments remained stable, with foreign exchange reserves staying above $3.2 trillion. 

Speaking about the just-concluded annual Central Economic Work Conference, Han said that China will implement more proactive and effective macroeconomic policies in 2025, which means adopting a more proactive fiscal policy and a moderately loose monetary policy. 

“This marks a notable shift from previous years. These changes will enhance counter-cyclical adjustments, better address the unstable and uncertain factors in economic operations, and provide the strong policy support for achieving the annual goals,” Han said, adding that specific measures will be detailed and unveiled at the two sessions in 2025.

When it comes to implementing the moderately loose monetary policy, Han said it is necessary to leverage monetary policy tools, while reducing the reserve requirement ratio and interest rates at an appropriate time, using open market operations effectively and maintaining abundant liquidity. The central bank will explore expanding its macroprudential and financial stability functions, innovate financial instruments, and ensure the stability of financial markets. 

The annual Central Economic Work Conference was held in Beijing from Wednesday to Thursday as Chinese leaders decided priorities for the economic work in 2025.

Han said risks in key areas have been effectively managed, with the real estate market showing positive changes. Transaction volumes and prices have shown positive signs since October. Risks associated with local government debt and small and medium-sized financial institutions have also been effectively alleviated, mitigated, and managed. 

As of the end of November, 3.24 million housing units were delivered nationwide as part of efforts to ensure housing delivery, and loans approved for projects on the country’s “whitelist” housing projects reached 3.6 trillion yuan ($494.77 billion), Dong Jianguo, vice minister of housing and urban-rural development, said at the conference. 

Meanwhile, Zhao Chenxin, a vice chairman of the National Development and Reform Commission, China’s top economic planner, stressed the importance of stabilizing the country’s stock market at the same conference. 

Zhao stressed the need to advance capital market reforms, remove barriers for medium- and long-term capital entering the market and enhance the inclusiveness and adaptability of the capital market system.

Global Times