The Politburo, China's top decision-making body, declared that it will ensure the growth of its economy. The agency also said that it will even tweak policy if it is needed. The assurances were given to dispel doubts about the near-term economic outlook of the world's largest economy. Knowing that a slow economy could derail their efforts to reform, the main planning agency also said that enough funding would be given to its markets.
The country's slow growth, increasing credit, and unstable property markets have kept investors teetering on their seats. They are concerned that China would not be able to reach its 7.5% target growth this year which is already its lowest in 23 years. Its new leaders had earlier promised to get China off its expert addiction and growth fueled by credit. They pledged that their growth would be more consumption-driven.
In a note, Bank of America Merrill Lynch analysts said that the new statement underscored stability and the seriousness of Chinas' new leaders to undertake reform.
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