Chinese Leader Meet to Keep Growth Within Reasonable Range

Chinese leaders, meeting ahead of an agenda-setting conference, pledged on Monday to keep the country’s economic growth in a “reasonable range” in 2016 by expanding domestic demand and making supply-side improvements.

The pledge was reported by the official Xinhua news agency, which said the Politburo, a top decision-making body of the ruling Communist Party that President Xi Jinping chairs, convened on Monday.

No numbers were reported for what leaders see as “reasonable”, but Monday’s meeting signals that the annual Central Economic Conference – at which policymakers are expected map out 2016 economic and reform plans and targets – should open soon.

In 2014, there was a Politburo meeting on Dec. 5, and the pivotal economic conference was held Dec. 9-11.

In reporting Monday’s Politburo meeting, Xinhua said without elaborating that macro-economic polices will be kept stable while micro-policies will be flexible.

“While appropriately expanding aggregate demand, more efforts will be made to improve the quality of efficiency of the supply system,” Xinhua said.

Premier Li Keqiang recently pledged to step up “supply-side” reforms to generate new growth engines in the economy while tackling factory overcapacity and so-called zombie firms.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza