China targets 2024 GDP growth of around 5%, according to Official Work Report

Economy / Targets

• Sees 2024 CPI at around 3% (exp. around 3%)


• Sees 2024 national budget deficit at CNY 4.06tln with budget deficit seen at 3% of GDP.


• Favourable conditions outweighing unfavourable ones for China economy in 2024.


• Must not lose sight of 'worst-case scenarios' for economy.


• China aims to create over 12mln new urban jobs in 2024.


• China aims to keep survey-based urban jobless rate at around 5.5% in 2024.


• China should maintain adequate liquidity at appropriate level.


• China will continue to implement proactive fiscal policy and prudent monetary policy.


• China should intensify cross-cyclical and counter-cyclical adjustments through macro policies.


• Achieving this year's economic growth target for China will not be easy.


• China's 2024 growth of total social financing and money supply will match expected goals on economic growth and CPI increase.


• China will improve tax and fees policies to make them more targeted and effective.


• China will intensify efforts to attract foreign investment in 2024.


• China will launch a year-long program to stimulate consumption and roll out a "worry-free consumption" initiative to improve the consumption environment.

Debt / Issuance / Risks

• China will issue CNY 1.0tln in ultra-long-term special treasury bonds in 2024.


• China sets 2024 quota on local government special bonds at CNY 3.9tln (prev. 3.8tln in 2023)


• China ultra long bonds will be used for implementing major national strategies and building security capacity in key areas.


• China will make concerted efforts to defuse local government debt risks.


• China will take tough measures against illegal financial activities.


• China will improve the system of financial regulation and raise capacity for preventing and controlling financial risks.


• China will diffuse risks in real estate and local government debt.


• China will implement a package of measures to diffuse risks caused by existing debts and guard against risks arising from new debts.


• China will take prudent steps to defuse risks of small and medium-sized financial institutions in some localities.


• Will fend off risks in key areas.

Real Estate

• China will move faster to foster a new development model for real estate.


• China will scale up the building and supply of government-subsidized housing in 2024.


• China will improve the basic systems for commodity housing to meet people's essential need for a home to live in.


• China will refine real estate policies and meet justified financing demand for real estate enterprises under various forms of ownership on an equal basis.


• China will promote steady and healthy development of the real estate market.


• China will support urban renewal initiatives and ramp up the renovation of old residential communities in cities.


• China will make progress on three types of major projects including govt-subsidized housing, public infrastructure for emergency use, and reconstruction of urban villages.

Energy

• China aims for around a 2.5% fall in energy consumption per unit of GDP in 2024.


• China plans to accelerate the innovative development of hydrogen and other future energy industries.


• China intends to create a national platform for research into clean energy and energy storage.


• Will tighten rules over fossil fuels consumption.

EVs

• China will build on and expand China's strength in new energy vehicles.


• China to encourage new energy vehicle industries to perform better and stronger.


• China to improve long-term mechanisms for easing production overcapacity.

Agriculture

• China to spend CNY 140.63bln on stockpiling grain, edible oils and other materials in 2024 which is up 8.1%.


• China targets grain output of over 650mln metric tons in 2024.

Defence / Geopolitical

• China 2024 defence spending is to increase 7.2% Y/Y (prev. 7.2% growth target in 2023).


• China said on Taiwan, will 'be firm in advancing the cause of China's reunification'.

Analysis details (23:58)

• The growth target is in line with expectations and is unchanged from China's 2023 GDP growth target.

04 Mar 2024 - 23:56- Fixed IncomeData- Source: Newswires