Chinas economy to maintain stable, positive trend in H2: official

The Chinese economy will maintain its stable and positive trend in the second half (H2) of this year, following a sustained recovery in the January-June period, an official said Friday.

During a press conference, Yuan Da, from the National Development and Reform Commission (NDRC), highlighted positive changes in various economic indicators for July such as faster growth in power generation, improving market expectations, and a two-month rise in the manufacturing purchasing managers' index.

The government's policy mix that continues to take effect will promote economic improvements, according to Yuan.

China has taken important steps to extend and strengthen favorable policies for enterprises this year. These measures range from providing tax breaks for small firms to the exemption of the purchase tax for new energy vehicles, thus creating a stable policy environment and boosting the confidence of businesses.

A string of new measures were also rolled out, including financing support for tech firms, incentives for automobile and electronics consumption, and measures to bolster the private economy.

In response to new economic changes in the second quarter, another batch of measures is being put into force in a timely manner to offer strong policy support for the continued economic recovery, Yuan said.

These measures encompass bringing down interest rates, stimulating consumption, renovating urban villages in cities and expanding the issuance of real estate investment trust products in the infrastructure sector, according to Yuan.

Looking forward, Yuan said the NDRC will plan and prepare a more targeted and forceful policy reserve that can be implemented fast according to changes in the economic situation.

The policy reserve will be focused on six areas: expanding domestic demand, bolstering the real economy, promoting technological self-reliance, deepening reform and opening-up, improving people's livelihood, and defusing major risks.

Specifically, efforts will be made to spur auto purchases and private investment, as well as meet residents' rigid and improved housing demand. Small firms will receive more fiscal and financial support, and industrial upgrades will be accelerated.

The focus will be on channeling more energy into innovation, encouraging tech firms to actively participate in technological breakthroughs. Additionally, efforts will be made to boost the private economy and advance institutional opening-up.

Fresh college graduates and key job-seeking groups will be given more assistance, and the social security net will be strengthened.

Risks and problems in the real estate sector, local government debts, and finance will be effectively managed, in an effort to diffuse any potential systemic risks.