MNI POLICY: China to Pursue Growth with `Reasonable Quantity'

     BEIJING (MNI) - China will pursue a "reasonable quantity and steady

improvement in quality" of growth next year, with policies kept stable at the

macro level and flexible on the micro scale, according to a statement released

by Xinhua News Agency on Thursday following the Central Economic Work

Conference.

     Here are major takeaways:

     - China must be firm in preventing systemic risks. The economy's leverage

ratio must be stabilised. China will accelerate financial system reform, and

focus on improving the quality of both listed companies and of delisting

mechanisms. Authorities must guide banks to serve the real economy and support

small businesses.

     - Monetary policy will continue to be prudent and more flexible while

keeping liquidity at a reasonable and ample level. The expansion of aggregate

financing and credit should be in line with growth and funding costs should be

reduced.

     - Fiscal policy will continue to be active, with improved quality and

efficiency while emphasising structural adjustment. China will consolidate and

expand the effectiveness of tax cuts and fee reductions and optimise the

structure of fiscal expenditure.

     - The country will deepen financial supply-side reform, smooth the

transmission of monetary policy, boost financing to manufacturing and tackle

high financing costs. It will address the difficulties faced by private and

small and medium-sized businesses.

     - China must adhere to the principle that housing is for living, not for

speculation, promote stable and healthy development of the real estate market,

allow different measures in different cities, and implement long-term management

to stabilise land and home prices and property market expectations.

     - China will stabilise total employment, improve job structure and quality,

and focus on the employment of major groups. Each family should have at least

one person employed.

     - China will continue to open up, step up protection of foreign investment,

lower overall tariffs and push forward the development of Hainan Free Trade

Port. China will actively participate in global economic governance and WTO

reforms. It will speed up negotiations with others on multilateral and bilateral

free trade agreements.

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

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

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

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MC$$$$,MI$$$$]