• PBOC will choose timing this year to reduce rates, RRR

• NDRC chief confident of achieving around 5% growth goal

• Finance ministry has ‘ample’ policy tools, space for uncertainty

• Says China to unveil special campaign to boost consumption soon

Investors kept a close watch on a joint media briefing by the nation’s top economic officials on Thursday afternoon for clues on fresh supportive measures. The press conference included the chiefs of the finance ministry, the central bank and the securities regulator.

NDRC’s Zheng Shanjie is talking up China’s achievements last year, emphasizing China’s contribution to global growth. Zheng says the economy’s recovery is becoming more obvious, and has laid a good foundation for this year. China’s economy went through quite an “extraordinary” journey last year with growth slipping before bouncing back, Zheng says. Zheng says he is confident that China can achieve the GDP target this year despite difficulties and challenges.

It’s worth noting Zheng also speaks about consumption-related measures, echoing the government work report yesterday, which listed boosting consumption as the top work priority this year.

Zheng builds up anticipation on this “special campaign” to boost consumption. China has been trying to shift from investment to consumption to drive economic growth.

Consumption makes up about 40% of gross domestic product, compared with 50% to 70% in more developed economies, leading to persistent imbalances and trade tensions. Investment, including in the manufacturing sector, also makes up about 40% of the economy —roughly twice as much as in the US, and at a historic level compared with the rest of the world.

Finance Minister Lan is answering the question of how fiscal policy will be more proactive. Lan said fiscal policy needs to be adjusted based on conditions, and will continue to be strengthened.

Indeed, Lan says China has “ample” policy tools and spaces for external challenges. Much to expect.

China’s monetary policy has been supportive and relatively loose, and the central bank will seek to further cut interest rates and banks’ reserve requirements this year at an appropriate time, PBOC governor Pan says.

Pan says China will “choose timing this year” to reduce rates

Pan reiterates the central bank will lower interest rates and reserve requirement ratio at appropriate time, instead of giving a more detailed timeframe as he did in September last year.

China’s stance on yuan exchange rate has always been consistent, that is to keep the yuan rate at an equilibrium level, says Pan.

Pan said the Chinese central bank will:

• Introduce tech board for bond market

• To support bigger technology firms to issue medium-, long-term bonds

• To expand tech-sector relending to 800 billion yuan to 1 trillion yuan from 500 billion yuan