Event: the Political Bureau of the CPC Central Committee held a meeting on December 6 to analyze and study the economic work in 2022. The meeting proposed to continue to do a good job in the “six stabilities” and “six guarantees”, continue to improve people’s livelihood and strive to stabilize the macro-economic market. The meeting stressed that next year’s economic work should be stable and seek progress while maintaining stability. Macroeconomic policies should be sound and effective, and we should continue to implement an active fiscal policy and a prudent monetary policy. Active fiscal policies should improve efficiency and pay more attention to accuracy and sustainability. Prudent monetary policy should be flexible and appropriate, and maintain reasonable and abundant liquidity. We will implement the strategy of expanding domestic demand, promote the sustained recovery of consumption, actively expand effective investment and enhance the endogenous driving force of development. Micro policies should stimulate the vitality of market subjects. We should strengthen the protection of intellectual property rights. Structural policies should focus on unblocking the national economic cycle, improving the core competitiveness of the manufacturing industry and enhancing the resilience of the supply chain. We should promote the construction of affordable housing, support the commercial housing market, better meet the reasonable housing needs of buyers, and promote the healthy development and virtuous cycle of the real estate industry. We should accelerate the implementation of science and technology policies, continue to tackle key core technologies, strengthen national strategic science and technology forces, strengthen the dominant position of enterprises in innovation, and realize a virtuous cycle of science and technology, industry and finance. From the full text released after the meeting, we believe that there are the following points:
1. Clarify the tone of steady growth. Compared with the July meeting, the “six stabilities” and “six guarantees” were re mentioned, the “efforts to stabilize the macro-economic market” was added, and the word “stability” was added before the “seeking progress in stability”. Steady economic growth will be strengthened.
2. Active fiscal policy and prudent monetary policy. On the whole, fiscal policy and monetary policy continued the keynote of the Politburo meeting in July, but stressed that “macro policies should be stable and effective”. In terms of monetary policy, in addition to emphasizing “maintaining reasonable and sufficient liquidity”, add “flexible and appropriate”; The fiscal policy added “precision and sustainability”.
3. Real estate is slightly positive. Compared with the July meeting, before the “healthy development” of real estate, a “stable” and a “virtuous circle” were added. On the premise of no speculation in real estate, it was generally positive. In terms of methods, it is also clearly proposed to “promote the construction of affordable housing and support the commercial housing market to better meet the reasonable housing needs of buyers”. It is expected that promoting the construction of affordable housing may become one of the important driving points of finance, and housing loans may focus more on the first house purchase.
4. Expand domestic demand. The phrase “implement the strategy of expanding domestic demand, promote the sustained recovery of consumption, and actively expand effective investment” was added. It is expected that relevant policies to support the recovery of consumption may be issued in the future, and the investment center may focus on “new infrastructure”.
5. A virtuous circle of science and technology, industry and finance. The meeting proposed that “we should speed up the implementation of science and technology policies, continue to tackle key core technologies, strengthen national strategic science and technology forces, strengthen the dominant position of enterprises in innovation, and realize a virtuous cycle of science and technology, industry and finance”. The capital market serves the real economy and promotes the development of high-tech industry is an important path to achieve high-quality economic development in the future.
On the whole, the Politburo meeting set the tone that the intensity of steady growth will be strengthened next year. The policy environment is stable and loose, which is good for the market. We can pay attention to the investment opportunities in the fields of expanding domestic demand and the virtuous circle of science and technology industry and finance mentioned in the meeting.
