July 18, 2024 at 09:40AM
To adopt resolution on further deepening reform comprehensively
Must consciously place reform in a more prominent position
Reform tasks set out in this decision to be completed by 2029
Will implement measures to prevent, defuse risks in key areas such as real estate, local government debt, and small and medium-sized financial institutions
Will raise the level of party’s leadership in further deepening reforms across the board and promoting Chinese-style modernisation
To further coordinate reforms in key areas such as finance and taxation
To deepen the reform of foreign trade system
To carry out social security risk prevention and control network, effectively maintain social stability
To deepen the reform of management system for foreign, outbound investments
Will deepen supply-side structural reform, establish and development new growth drivers
The pledges offered here are what you would expect, being very on the surface and involving a more macro-oriented outlook. They did make mention on reforms to curb debt risks and trying to bolster key economic areas. But markets might be more comforted if there were more specifics instead.
For now, this will have to do. I would argue that the lack of details would do little to bolster market confidence. But then again, China has a knack for wanting to look after their image. They already set out more short-selling curbs ahead of the Third Plenum this week to make this all “look good”.
This article was written by Justin Low at www.forexlive.com.