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Zheng Shanjie, chairman of China’s National Development and Reform Commission, pledged a series of measures to support the country’s economy during a press conference. However, he did not announce any major new stimulus plans, which disappointed investors and dampened the mainland Chinese markets’ rally.

China will accelerate special purpose bond issuance to local governments to aid regional economic growth, according to the senior NDRC official. Zheng stated that 1 trillion yuan in ultra-long special sovereign bonds have already been allocated to fund local projects, with plans to issue more of these bonds next year. The central government will also unveil a 100 billion yuan investment plan for the upcoming year ahead of schedule.

The Chinese market rally lost momentum as policymakers refrained from introducing additional stimulus measures. The CSI 300 blue chip index saw gains reduced to 5%, down from over 10% at the opening. Similarly, the Shanghai Composite Index and SZSE Component Index scaled back gains to approximately 5% and 8%, respectively.

China expressed confidence in achieving its full-year economic growth target while promising support for the property market and domestic spending. Despite not providing specific figures, the country’s “pro-growth policy stance remains unchanged,” according to Yue Su, a principal economist at the Economist Intelligence Unit. She maintained her growth forecast for China at 4.7% for this year and 4.8% for 2025, anticipating potential additional fiscal support of 1 trillion to 3 trillion yuan to bolster the real economy.

Last month, China’s top leaders showed urgency in addressing a prolonged economic slowdown, prompting them to implement various stimulus measures aimed at boosting the economy and stabilizing the property market.

The stimulus initiatives come as the world’s second-largest economy grapples with lackluster domestic demand and a prolonged property downturn, leading to slower growth in the first half of the year. China’s latest economic data, including factory activity and consumer price index figures, have shown signs of contraction and missed expectations.

In March, Zheng emphasized the need to strengthen macroeconomic policies, involving coordination of fiscal, monetary, employment, industrial, and regional policies to support China’s economic growth. Despite acknowledging challenges in reaching growth targets, the NDRC chief remains committed to implementing necessary adjustments to achieve the desired outcomes.

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