BEIJING: China stressed it will aim to keep the economy expanding in a stable manner next year as it looks to counteract the effects of a housing market slump and slower growth.

       “Ensuring stability is the top priority for next year’s economic work,” the Communist Party’s top decision makers said at the end of a three-day annual Central Economic Work Conference.

       The government will “support commercial housing markets to meet residents’ reasonable needs,” according to a report of the meeting on the official wire service Xinhua Friday.

       The most important word for economic policy in 2022 is “stability,” Han Wenxiu, a senior economic official of the Communist Party, said.

       “All regions and agencies must take responsibility to uphold economic stability, actively introduce policies that can help stabilise the economy, and be cautious in imposing measures that will have a contractionary effect,” Han said during an online seminar explaining the meeting’s decisions.

       Led by the Politburo Standing Committee, the economic conference is a precursor to next year’s parliamentary meeting, where detailed targets are disclosed.

       Analysts are watching closely for clues of further monetary and fiscal stimulus, and whether regulations on debt and the property market will be relaxed to help support a slowing economy.

       The meeting signals that “stabilising growth is the bottom line, and for the next 12 months growth will be on top of the Communist Party’s agenda,” said Bruce Pang, head of macro-economy and strategy research at China Renaissance Securities Hong Kong Ltd.

       The statement mentioned the words “stability” or “stabilise” 25 times compared with 13 last year.

       Officials reiterated the phrase that housing is for living in and not speculation, which Pang said clarifies market sentiment and “overly optimistic views” about outright easing of property policies. “I don’t think China will completely relax property policies,” he said.

       Monetary policy will be kept flexible and appropriate and fiscal policy will be effective, targeted and sustainable.

       Officials pledged to properly advance infrastructure investment. China will enhance effective regulation of capital and will support development of the private sector.

       The government will introduce different policies for different cities and promote the healthy development of the industry. Common prosperity is set to be achieved in a stable manner, and is seen as a long term process. It will also formulate policies to resolve financial risks.

       After focusing policy most of this year on curbing financial risks and reducing debt in the economy, Beijing is starting to shift its focus to supporting growth.

       The elite Politburo leaders earlier this month signalled a dovish tilt in property policies, while the central bank has also raised expectations of further monetary easing with its decision to cut the reserve requirement ratio for banks.

       “We must acknowledge that our country’s economy faces the triple forces of contracting demand, a supply shock, and weakening expectations,” according to the statement on Xinhua. — Bloomberg