MNI BRIEF: China Boosts Demand Via Positive Policy: Politburo

China will continue to boost domestic demand via accommodative fiscal and monetary policies and government investment will play a leading role to support the economic recovery, according to a statement on the latest Politburo meeting issued by Xinhua News Agency on Friday.

The Politburo reviewed Q1 economic performance to set the tone for the coming months during the high-level quarterly meeting, which stressed the lack of domestic drivers, weak demand, and challenges the economic transition faces. The meeting also focused on efforts to push high-quality growth to tackle difficulties, despite better-than-expected economic performance over Q1.

The Politburo will affirm its principle of “the house is for living in rather than speculating on”, ensuring the market meets demand from first and second house buyers, and it will establish a new model for healthy property market growth, the meeting said. Authorities will also enhance management of local government debt, strictly control new “hidden debt” and target risk from small- and mid-sized banks, insurance, and entrust institutions.