MNI: China Pledges Steady Econ Course, Reforms Over 3 Yrs:CEWC

--Reining In Financial Risks, Continued Supply-Side Reforms Remain Top Goals

--'Prudent And Neutral' Monetary Policy To Continue

     BEIJING (MNI) - China on Wednesday pledged to fully implement a series of

policy prescriptions over the next three years in line with President Xi

Jinping's "Socialist Economic Thought," focused on financial deleveraging, a

"prudent and neutral" monetary policy, continued supply-side reforms,

environmental protection and various market-opening measures.

     The government also said in a communique at the end of its three-day

Central Economic Work Conference, which sets the course of the country's

economic policies, that it was prepared to promote private investment and

continue to tamp down on the country's red-hot property market in order to

prevent a bubble, while at the same time more fully opening its housing system

and encouraging renting. 

     The statement said China would "fight the critical battle of addressing

major risks with the priority on managing and preventing financial risk,"

according to Xinhua News. 

     "Prudent monetary policy should be kept neutral, the floodgates of monetary

supply should be controlled, and credit and social financing should see

reasonable growth," the statement said. "Meanwhile, the proactive orientation of

fiscal policy will be maintained, while the structure of fiscal spending should

be optimized."

     Overall, the statement said, China would focus on quality over quantity in

its economy while keeping GDP within a "reasonable range" and continue to cut

industrial overcapacity and push new growth drivers. The party will also start a

"targeted" poverty-reduction campaign, it said.

     The closed-door meeting, which was attended by more than 400 top government

officials, also stressed that China will continue to strengthen state-owned

enterprises and improve its SOE reform plan.

     The country will also make a concerted effort to cut the cost of the real

economy and guide outbound investment at an "efficient" pace, the statement

said.

     The CEWC goals hew closely to those set out at the 19th Communist Party

Congress in October and to the three economic "battles" identified by the

Standing Committee Politburo earlier this month -- tackling financial risks,

cutting down on pollution and reducing poverty. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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