China Central Politburo Meeting: Expanding Domestic Demand, Stabilizing the Property Market, and Developing Smart Economy

On April 28, the Political Bureau of the CPC Central Committee convened an economic situation analysis meeting, releasing numerous important policy signals.

The meeting stated that the economy has started strongly this year, with main data exceeding expectations, but the foundations for a stable and upward trend are not yet solid, and difficulties and challenges remain.

Regarding finance, there is a continued optimization of spending structure, ensuring that grassroots wages, operations, and basic livelihoods do not encounter problems. In terms of money, it emphasizes "moderately loose" policy, maintaining sufficient funds in the market while also keeping the RMB exchange rate fundamentally stable.

The meeting clearly proposed to build six "webs" well, which are water networks, new power grids, computational power networks, new-generation communication networks, urban underground pipelines, and logistics networks. All of these are large infrastructure projects that can both drive investment and lay a foundation for the future economy. At the same time, more good products and services are encouraged to be provided to make people willing to spend money.

Firstly, "AI+" is fully launched to develop the smart economy; secondly, it specifically targets the rectification of "involution-style" competition, which is to prevent enterprises from engaging in price wars and vicious competition that deplete profits; third is to continue advancing state-owned enterprise reforms. In the face of external pressures, it emphasizes "responding to external uncertainties with our own certainty."

In terms of real estate, the goal is to "stabilize" while promoting urban renewal; regarding local debt, risks are to be resolved in an orderly manner, and the longstanding issue of governments' overdue payments to enterprises must be resolved; in terms of the capital market, confidence is to be stabilized, and reforms of small and medium banks are to be promoted.

Regarding people's livelihoods, employment is placed first. There is increased investment in education, healthcare, child care, etc., and the prices of agricultural products, particularly pork, need to be stabilized to firmly prevent large-scale return to poverty.