China's Premier Li Qiang urges 'forceful' action to boost confidence

By Bloomberg News

Chinese Premier Li Qiang called for “pragmatic and forceful” action to boost the nation’s confidence in the economy, underscoring the government’s concern with a struggling recovery and stock rout.
 

Li used a meeting of the State Council, China’s cabinet, on Sunday to urge officials to “do more things that are conductive to boosting confidence and expectations, and ensure policymaking and execution are consistent and stable,” the official Xinhua News Agency reported.

Various departments should focus on solving practical problems faced by individuals and companies as the Lunar New Year holiday ends, Li said, adding that they need to “win the trust of the people with real work and achievement.” Xinhua didn’t outline any specific steps. 

Chinese leaders are hunting for ways to jump-start the economy, which faces headwinds from a property slump, weak business confidence and persistent deflationary pressures.

Authorities sought to stem the equities rout before the holiday, with state funds ratcheting up purchases, a slew of regulatory tweaks to reduce selling pressure and a surprise replacement of the securities regulator chief. A resurgence in travel over the break offered some early signs of consumer spending picking up.

Chinese stocks recorded modest gains as markets reopened on Monday, indicating doubts run deep over the longer-term prospects of the economy. Investors are awaiting further support from Beijing, including a potential cut to banks’ benchmark lending rates on Tuesday. 

The State Council meeting also discussed a draft government work report, according to Xinhua. The official report containing key growth targets for 2024 will be announced at the annual legislative sessions in early March.