China | 2022 "Two Sessions" prioritizes stabilizing growth

Summary

We outlined the main take-aways of the "two sessions" and analyze the policy initiatives and growth targets promulgated. Structural reforms will give way to growth priority in 2022.

Key points

• Key points:
• GDP growth target for 2022 at “around 5.5%” and other economic targets are also promulgated.
• Expansionary fiscal policy stance to stimulate growth.
• Accommodative monetary policy to stabilize growth but will refrain from resorting to a deluge of strong stimulus policies.
• The government work report also highlighted the potential risks in 2022 and outlined the long-term Chinese new growth model.
• Structural reforms, "common prosperity", carbon neutrality target and regulatory storms will give way to growth priority.

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