China said it's confident in reaching its economic targets this year and promised further support for growth, although it held back in unleashing more stimulus in a disappointment to investors looking for more fuel for a world-beating stock rally.
Officials in the National Development and Reform Commission, the country's economic planning agency, said Tuesday they would speed up spending while largely reiterating plans to boost investment and increase direct support for disadvantaged groups, such as orphans and new graduates. They added that China would continue to issue ultra-long sovereign bonds next year to support major projects and invest 100 billion yuan ($14 million) on key strategic areas.
“We're fully confident in realizing our goals for the whole year,” Zheng Shanjie, the NDRC's chairman, told reporters in the first briefing following a weeklong national holiday. He noted that China is facing a more complex environment at home and abroad.
A rally in onshore Chinese stocks on their return from a week-long holiday fizzled quickly as traders questioned Beijing's resolve to add more stimulus. The benchmark CSI 300 Index was up just about 2% an hour into trading on Tuesday after surging almost 11% in the opening minutes. A gauge of Chinese shares listed in Hong Kong tumbled almost 10% after having rallied nearly 11% during the holiday period.
The press briefing is being closely watched for further steps to lift the economy after Chinese leaders signaled a desire to draw a line under the nation's growth slump. The barrage of measures raised expectations for additional fiscal stimulus worth trillions of yuan to boost confidence, although skepticism lingers over whether they could sustain growth.
China's leaders aim to achieve around 5% growth this year, but economic data in recent months show that would be hard to reach as consumer spending remained sluggish and a property downturn persisted. Rising trade tensions are also threatening new growth drivers such as exports of electric vehicles.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
