MNI BRIEF: China's Politburo Eyes Additional Pro-Growth Policy

MNI (BEIJING) - Beijing will step up efforts to meet its 5% annual growth target by launching additional measures and improving policy effectiveness, according to the details of Thursday's Politburo meeting reported by the People’s Daily.

China must increase countercyclical adjustments, ensure fiscal spending and use government bonds to drive investment, while lowering the reserve requirement ratio and implementing strong interest-rate cuts, the Politburo stated. (See MNI: More RRR Cuts Would Pave Way For China Bond Sales-Advisors)

The real-estate market must also be stabalised by strictly controlling the increase in new construction and boosting loans to whitelisted housing projects, and authorities should also adjust home purchase restrictions and reduce existing mortgage interest rates, according to the Politburo. (See MNI: China Home Sales Likely To Languish Despite New Stimulus )

The top governing body also wants to boost the capital market by vigorously guiding medium and long-term funds, such as social security, insurance, and financial-management funds, into the market, the newspaper reported.