This cannot be achieved without “a healthy monetary policy and complete financial regulatory framework and staying away from systemic financial risks”, Xi said in the speech, according to domestic press.
Deleveraging − reducing China’s growing credit market risk − “gets a fleeting mention but no extended treatment”, according to Bloomberg economists who issued a statement after the speech.
The statement reported that Xi said “from now till 2020 is the decisive period for completing construction of a moderately prosperous society.”
They believe that “implies no change in the target of 6.5% annual GDP growth in the years ahead – required to achieve a doubling of GDP from 2010 to 2020”.
On the topic of China’s financial system internationalisation, the local press reported that Xi said the reform concerning “market-isation” of interest rate and currency market will continue. Authorities will also strengthen protection of onshore foreign capital and foreign investors’ legal rights and accelerate the expansion of Chinese participation in international economic cooperation.
Against the backdrop of China’s ageing society, Xi highlighted the expansion of the pension space and pledged to revamp the healthcare protection scheme.
The party will also provide support for developing innovation projects in fields such as technology and internet services, Xi said.