Strategy Note /

CN : Strategy - Policy tone set for 2022

    Mark Po
    Mark Po

    Research Analyst

    13 December 2021
    Published byCGS-CIMB

    A memo was released after the annual Central Economic Work Conference (CEWC) (the meeting) which is in line with the release at the Politburo meeting. The memo set the policy tone for 2022, which makes growth stability the top priority, given mounting downward pressure on economic activity. Key targets are set to be released at the National People’s Congress meeting next March. The meeting reiterated the “housing is not speculation” stance but emphasized healthy development in the property industry, which in our view, implies modest policy easing will be implemented to limit the downturn. The Chinese government is expected to emphasize sustaining economic growth (household income and employment). The memo also mentioned the impact of new reform measures including full implementation of the registration-based IPO system, the three-year action plan for SOE reform, and reforms in the power grid and railway sectors.