China's monetary policy will not be too tight or too loose next year as authorities try to sustain a reasonable pace of growth in the economy, which faces considerable headwinds, a statement issued after the Central Economic Work Conference on Thursday stated.
The statement did not give a specific growth target for 2015, which is usually made public in March, but said China will be “reasonable” when setting up goals and maintaining the flexibility of its macro-control policies.
The economy faces relatively big downward pressure in 2015, Xinhua News Agency cited the government as saying after its annual Central Economic Work Conference, where authorities chart the growth blueprint for the following year.
Investment will remain a key driver of growth as authorities ensure that exports, consumption and investment — also known as the three horses of China’s wagon of economic growth — play equal parts in powering the economy, Xinhua said.
“There will be greater focus on monetary policy being appropriately tight or loose,” Xinhua cited the government as saying as it reiterated that monetary policy will be kept “prudent” and fiscal policy “pro-active.”
Policies would be fine-tuned in a targeted way, Xinhua said, without further details.
China will accelerate reforms in nine areas next year including the capital market and the market access for private banks, the statement said.
The country will also speed up reforms of administrative approval, investment, pricing, monopolized industry, franchise operation, government purchased service, and outbound investment.
Dragged down by a slowdown in the housing market, softening domestic demand and unsteady export, China’s growth slid to a low not seen since the 2008/2009 global financial crisis in the third quarter. In the first three quarters, China’s gross domestic output expanded by 7.4 percent.