UpdateChina's leaders vow steady growth - and some reforms

The nation's top leaders pledged to maintain steady economic growth while deepening fiscal and financial reforms, setting the tone for policymaking in the second half of the year.

The direction outlined in a Politburo meeting chaired by President Xi Jinping yesterday suggested Beijing remains committed to, and confident of, meeting its annual growth target but appeared to rule out any massive monetary or fiscal stimulus measures in the months to come.

Keeping policies stable with some fine-tuning should create a favourable environment for the annual policy conclave among Communist Party chiefs due to be held in the northern coastal resort of Beidaihe , where the leaders will discuss their policy agenda for a crucial party assembly this autumn.

"Conditions are there for the economy to develop continuously and healthily. In the second half, China's economy will maintain a generally steady development," the top leaders said in a statement posted on the government's website.

"Fine-tuning will be done with appropriate timing and appropriate magnitude."

In contrast to recent months, there were no expressions of concern about the "downward pressures facing the economy", which may bolster market confidence in the leaders' willingness to take action as needed to stabilise growth.

The statement also reinforces recent remarks by Premier Li Keqiang that the government would ensure that growth and employment stay above certain limits. A Xinhua article said the official bottom line for growth is 7.5 per cent this year and 7 per cent in the long run.