China ends planning meeting with vows to stabilize its economy, but gives no details on stimulus

BANGKOK -- Chinese leaders wrapped up a two-day planning meeting in Beijing on Thursday with pledges to take a more proactive approach in pepping up the world's second-largest economy, but gave no details on new stimulus measures.

A state-run CCTV report on the annual meeting mainly reiterated a strategy outlined earlier in the week after a session of the ruling Communist Party’s powerful Politburo at which leaders pledged to loosen monetary policy and adopt a more proactive fiscal approach.

Markets in China have climbed recently on renewed hopes for a stronger dose of stimulus to help counter weak consumer spending that has kept the economy growing this year at a rate slightly slower than the government's official target of about 5%.

The promise of “moderately loose” monetary policy showed a shift from a more cautious “prudent” approach that had prevailed for a decade, after China’s recovery from the global financial crisis.

But so far, the measures taken this year to jolt the economy out of its post-pandemic doldrums have been broad in scope but more incremental and technical than the dramatic stimulus that investors have been hoping for.

The CCTV report said China would raise its fiscal deficit and continue to issue “super-long” government bonds to help finance additional spending. It gave no details on the amount of money to be spent or size of the deficit.

Leaders pledged to stabilize the property market, which has been mired in a downturn after a crackdown several years ago on excess borrowing by property developers.

They also promised to boost consumer spending by countering weakness in the job market and seeing that wages keep pace with economic growth.

The party also was drafting longer-term strategies for the country's next five-year plan, which will provide a blueprint for policies in the coming years that will likely align with President Xi Jinping's emphasis on developing advanced technologies and “higher quality” growth.

Several months ago, the Chinese central bank and other regulators began rolling out various policies aimed at encouraging businesses and households to spend more money. A statement issued after the Politburo meeting mostly reiterated the same broad promises.

Beijing also has launched programs to pay subsidies for trade-ins of old cars and appliances that are replaced by new, more energy efficient ones.

The scheme has helped boost auto sales, one of the brighter areas of the economy, according to the Chinese Association of Automobile Manufacturers.

The industry body said this week that passenger car sales jumped 17.5% in November compared to a year ago, the second straight month of double-digit growth following a 10.7% rise in October.

“We continue to call for the extension of relevant policies that promote auto consumption,” the association said, noting positive policy signals from the Politburo meeting.

Exports have also shown signs of strength, though rising tariffs imposed on electric vehicles and other Chinese products pose a threat to trade-led growth.

Meanwhile, the property market has shown signs of recovering from its prolonged downturn, though economists say a full recovery will take time.

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Associated Press writer Ken Moritsugu and researcher Yu Bing in Beijing contributed to this report.