Plenum Explained 1: Implications for China’s Finance and Economy

Core to the reforms set in motion at the meeting are stabilizing the capital markets, reviving the ailing property sector and relieving indebted local governments

Reforms to address existing economic challenges, including stabilizing the capital markets, reviving the ailing property sector and relieving indebted local governments, are at the core of a plan released Sunday following the conclusion of the Third Plenum of the 20th Central Committee of the Communist Party.

Some market observers see the dozens of reform measures that make up the resolution as broadly sticking to the top leadership’s vision for the world’s second-largest economy.

“What’s coming out of the 3rd Plenum is largely a reiteration of existing policy stances,” economists at Macquarie Group Ltd. wrote in a Sunday analysis.

However, there are nuanced signals and new statements worth noting.

Stabilizing the capital markets

Capital markets are a key concern for foreign investors.

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