China: Structural reforms will help stabilise the economy - ANZ

Analysts at ANZ are expecting that the Chinese policymakers are likely to continue to support the economy through proactive policies.

Key Quotes

“China’s top decision-making body, the Central Politburo of the Communist Party, released a statement 19 April outlining the country’s economic situation. The statement confirms that growth in the first quarter of the year has been better than expected. It also deems structural factors to be contributing to ongoing downward pressures. The statement also highlights the following:

  • Supply-side structural reforms will continue to be the policy priority, and the authorities will carry on with structural deleveraging to control overall risks.
  • The development of high quality manufacturing will be key to stabilise the economy.
  • Houses are for living, not for speculation.”

“We expect Chinese policymakers to continue to support the economy through proactive policies. However, as the statement did not mention “keeping liquidity reasonably ample” as it did previously, we believe that going forward the People’s Bank of China (PBoC) will be more prudent in order to control macro leverage. Thus, the likelihood of a cut in the required reserve rate (RRR) for all commercial banks before June has become diminished.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.


GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.


Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.