China: Premier Li Pledges Incremental, Modest Easing to Meet the Full-Year Growth Target

At the State Council meeting today (28 September), Premier Li pledged to "launch a package of pragmatic and effective incremental policy measures" and reaffirmed the commitment to "strive to achieve the full-year economic and social development targets." He highlighted the use of unspent local government bond issuance quotas accumulated from previous years, the expansion of targeted PBOC relending for technological innovation and small businesses, and further study of measures to stabilize the property and labor markets for future rollout. The package points to targeted and measured easing—primarily through fiscal and credit channels—rather than broad-based, significant stimulus. In the coming weeks, we expect the MOF to approve an additional local government bond issuance quota, the PBOC to modestly increase its relending quota, policymakers to further broaden the use of housing provident funds, and more large cities to introduce local housing easing measures. We expect the PBOC to ma