NDRC Chairman’s Economic Plans: Assurance Without Action 

Zheng Shanjie, chairman of China’s National Development and Reform Commission (NDRC), outlined plans to enhance the nation’s economic stability during a press conference on Tuesday. However, his failure to announce significant new stimulus measures left investors disappointed, dampening the recent rally in mainland Chinese markets.

Zheng highlighted that the government would expedite the issuance of special-purpose bonds to local governments to drive regional economic growth. He confirmed that local projects have received 1 trillion yuan in ultra-long special sovereign bonds and pledged to continue issuing these bonds in the coming year.

NDRC Chairman’s Economic Plans: Assurance Without Action 

Additionally, the central government is going to release a 100 billion yuan investment plan for 2024 by the end of this month, ahead of schedule, signaling proactive measures to bolster the economy. This announcement coincided with the reopening of markets following the Golden Week holiday, which began on September 30.

Despite initial enthusiasm, the CSI 300 blue-chip index saw its gains shrink to around 5% after surging over 10% at the open. The Shanghai Composite Index and the SZSE Component Index also dialed back their early gains to approximately 5% and 8%, respectively.

Zheng expressed confidence in achieving the full-year economic growth target while emphasizing the need for measures to support the property market and boost domestic consumption. Yue Su, a principal economist at the Economist Intelligence Unit, noted that the absence of specific figures shouldn’t be viewed negatively, maintaining a growth forecast of 4.7% for this year and 4.8% for 2025.

However, concerns linger among investors. Shaun Rein, managing director at China Market Research Group, stated that many Western investors are likely to take profits, awaiting further details on fiscal stimulus to sustain the rally. “If there’s no fiscal stimulus with real meat and details, the rally will fade,” he warned.

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