China's NDRC to issue new incremental policies as needed to keep economy in range
In short
At its October press conference on 20 October, the National Development and Reform Commission (NDRC) said it will issue new incremental policies in good time as needed to keep the economy within a reasonable range. Zuo Gang (左刚), a deputy director in the commission's national economy department, also said it would speed up existing policies and implement recently announced financial support measures.
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The National Development and Reform Commission (NDRC) held its October press conference on 20 October. Zuo Gang (左刚), deputy director of its Comprehensive Department of National Economy, said the commission will work with relevant departments to introduce and implement incremental policies in good time. He said existing and incremental policies should work together and make the most of the combined effect of macroeconomic policies, in an effort to achieve a good start to the 15th Five-Year Plan period. [ 1 , 2 , 3 , 4 ]
Zuo described two lines of work. The first is to raise the effectiveness of existing policies. According to the reports, this means pushing major projects under the 15th Five-Year Plan and the "six networks" implementation plan to start construction, preparing projects to a high standard, strengthening resource guarantees and speeding up approvals. It also means coordinating with relevant parties to speed up the release of funds from new policy-based financial instruments. Yicai added that project preparation includes reviewing, one by one, the early-stage progress of projects that have not yet started. [ 1 , 3 , 4 ]
Private investment is also to be encouraged by bringing private capital into major nuclear power, hydropower and water conservancy projects. The NDRC will further refine policies such as promoting key industries across the whole chain and optimising the layout of computing power facilities. It will also push forward inspection and renovation of old reservoirs and continue to promote construction of high-standard grain storage. [ 1 , 3 , 4 ]
The second line is to introduce practical incremental policies promptly. Zuo said the NDRC will carry through measures announced recently: lowering the pledged supplementary lending rate, increasing the relending quota, subsidising interest on residents' home loans, and financial support for the development of the services sector. He said the aim is to get them to take effect. He added that the NDRC will monitor the economy with early warning and, according to Yicai, also prepare policy research and reserves, and will issue new incremental policies as needed to keep the economy within a reasonable range. [ 1 , 2 , 3 , 4 ]
Jiemian added background. Data from the National Bureau of Statistics released on 19 October showed GDP up 4.6% year on year in the first three quarters, with third-quarter growth of 4.5%, 0.2 percentage points faster than in the second quarter. Jiemian said a State Council executive meeting on 28 September had set out steps including faster issuance and use of local government bonds. It quoted Zhang Di (张迪) of China Galaxy Securities' research institute as saying policy may be relatively restrained this year, and Luo Zhiheng (罗志恒), chief economist at Yuekai Securities, as recommending that existing policies be implemented faster and incremental policies introduced when appropriate in the fourth quarter. [ 4 ]
Why it matters
The statement signals that the NDRC is prepared to add policies if needed, but the documents give no new measures or dates. Jiemian placed it after the previous day's GDP data and quoted analysts who differ on how much new policy to expect.
Key facts
- The NDRC held its October press conference on 20 October. [ 1 , 2 , 3 , 4 ]
- Zuo Gang, deputy director of the NDRC's Comprehensive Department of National Economy, said the NDRC will work with relevant departments to introduce and implement incremental policies in good time, aiming for a good start to the 15th Five-Year Plan period. [ 1 , 2 , 3 , 4 ]
- He said the NDRC will make existing policies more effective, including pushing major projects under the 15th Five-Year Plan and the "six networks" implementation plan to start construction and speeding up the release of funds from new policy-based financial instruments. [ 1 , 2 , 3 , 4 ]
- Private capital is to be brought into major nuclear power, hydropower and water conservancy projects. [ 1 , 3 , 4 ]
- The NDRC will push implementation of recently announced measures: a lower pledged supplementary lending rate, a larger relending quota and interest subsidies on residents' home loans, alongside financial support for the services sector. [ 1 , 2 , 3 , 4 ]
- The NDRC will monitor the economy with early warning and issue new incremental policies as needed to keep growth within a reasonable range. [ 1 , 2 , 3 , 4 ]
Confirmed by several sources
- The NDRC said it will issue new incremental policies in good time as needed to keep the economy within a reasonable range. [ 1 , 2 , 3 , 4 ]
- The NDRC will push implementation of recently announced measures including a lower pledged supplementary lending rate, a larger relending quota and home loan interest subsidies. [ 1 , 2 , 3 , 4 ]
- The NDRC will speed up the release of funds from new policy-based financial instruments and encourage private investment. [ 1 , 2 , 3 , 4 ]
- Private capital is to be brought into major nuclear power, hydropower and water conservancy projects. [ 1 , 3 , 4 ]
Still unclear
- Which new incremental policies will be introduced, and when. The documents quote only a general commitment to act as needed and name no new measures or dates.
- Whether grain-storage upgrades cover existing storage buildings or existing factory buildings. Yicai refers to upgrading existing storage buildings, while CLS and Jiemian use wording that refers to existing factory buildings.
- How much new policy to expect this year. Only Jiemian reports analyst views: Zhang Di expects policy may be relatively restrained, while Luo Zhiheng recommends introducing incremental policies when appropriate.