Mainland sticks to stable growth

The new central leadership yesterday hinted that economic stability and continuity would be its priority, dashing hopes for a big-bang stimulus for the time being.

A statement released after the first Politburo meeting warned that the domestic economy is still facing challenges amid the global slowdown and the government would continue to strengthen macro policies and adjust the growth model.

Growth slowed to a 14-quarter low of 7.4 per cent in the third quarter, but economists broadly expect China to meet its full-year target of 7.5 per cent growth this year, with some quarters even expecting 8 per cent.

Yi Xianrong, a researcher at the institute of Finance and Banking at the Chinese Academy of Social Sciences, said he does not expect radical changes in the economic policy if the top priority of the new administration is maintaining stable growth.

"A large stimulus package is also unlikely," he said, adding the country will be able to maintain the current growth pace next year.

While the Politburo meeting, chaired by new party chief Xi Jinping, did not depart from the general direction of the current policy, the statement, however, said: "We will fine-tune macroeconomic policies and launch pre-emptive measures at the appropriate time."

Some experts believe the economy may be bottoming.