China’s Communist Party central committee adopts resolution on further deepening reforms

News
  • To adopt resolution on further deepening reform comprehensively
  • Must consciously place reform in a more prominent position
  • Reform tasks set out in this decision to be completed by 2029
  • Will implement measures to prevent, defuse risks in key areas such as real estate, local government debt, and small and medium-sized financial institutions
  • Will raise the level of party’s leadership in further deepening reforms across the board and promoting Chinese-style modernisation
  • To further coordinate reforms in key areas such as finance and taxation
  • To deepen the reform of foreign trade system
  • To carry out social security risk prevention and control network, effectively maintain social stability
  • To deepen the reform of management system for foreign, outbound investments
  • Will deepen supply-side structural reform, establish and development new growth drivers

The pledges offered here are what you would expect, being very on the surface and involving a more macro-oriented outlook. They did make mention on reforms to curb debt risks and trying to bolster key economic areas. But markets might be more comforted if there were more specifics instead.

For now, this will have to do. I would argue that the lack of details would do little to bolster market confidence. But then again, China has a knack for wanting to look after their image. They already set out more short-selling curbs ahead of the Third Plenum this week to make this all “look good”.

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