Overview
- China's Politburo pledged stepped-up macro support on Thursday after official data showed second-quarter GDP growth slowed to 4.3%, the weakest in more than three years.
- Leaders directed faster fiscal spending, use of monetary tools 'as appropriate', and tighter coordination between fiscal and financial authorities to boost domestic demand.
- The statement stressed restraint on large-scale stimulus, ordered measures to curb industrial overcapacity, and called for indebted local governments to keep spending within their means.
- Economists cited by the coverage said accelerating already-budgeted national infrastructure projects could stabilise activity in the coming months without materially widening the fiscal deficit.
- The Politburo set the fifth plenary session for October and flagged a campaign to tackle damaging 'involution' competition, a move that links near-term economic choices to the political calendar and signals caution on long-term debt buildup.