'Big moment' missed but Beijing confident of hitting target

China says it is "fully confident" of hitting its growth target this year but has held off more stimulus, disappointing markets and fueling concern about a lack of detail on a raft of measures unveiled last month.

Beijing has struggled to reignite business activity as officials target around 5 percent expansion, which analysts say is optimistic given the numerous headwinds, from a prolonged housing crisis to sluggish consumption and local government debt.

Investors had hoped yesterday's much-anticipated news conference, led by National Development and Reform Commission head Zheng Shanjie, would see more boosting policies announced.

But officials refrained from laying out any new stimulus - instead reiterating that "the fundamentals of our country's economic development have not changed."

He added: "We are fully confident in achieving the goals of economic and societal development for the year. We are also fully confident in maintaining stable, healthy and sustainable development."

The press briefing "was supposed to be the big moment, the one where Beijing unleashed a stimulus bazooka," Stephen Innes, managing partner at SPI Asset Management, said.

"Instead, it was more of a pop gun. Beijing's reluctance to roll out a bigger package is raising serious doubts about the sustainability of this rally."

Analysts had hoped officials would unveil further fiscal support such as trillions of yuan in bond issuances and policies to boost consumption.

They warn that deep reforms to the economic system to relieve the debt crisis in the property sector and boost domestic demand are needed if Beijing is serious about resolving the fundamental obstacles to growth.

But HSBC economists Jing Liu and Erin Xin said "more patience" was needed, adding that the NDRC was "not in a position to announce the complete stimulus package or a specific number." More fiscal support may yet be revealed by the State Council and the finance ministry "to help sustain confidence and shore up growth," they said in a note.

Premier Li Qiang, meanwhile, called on all parties to work toward implementing the recent slate of measures, according to CCTV.

Li said during a meeting with economic experts and entrepreneurs that a batch of policy measures "to stabilize the economy and promote development will be studied and reserved" in conjunction with 2025 planning, to be introduced at an unspecified later date.

AGENCIES