BEIJING (Reuters) – China will step up measures to support the economy as war in Ukraine and a spike in COVID-19 cases heighten risks, the Communist Party of China’s political bureau said on Friday, boosting markets.
Beijing has set an economic growth target of 5.5% this year, which economists say will be difficult to achieve without significant stimulus.
State media reported details of a Politburo meeting on Friday, which sent Chinese stocks, especially internet-related stocks, hurt by crackdowns last year.
China will adopt measures to help industries and small businesses affected by COVID-19, state media said, citing the meeting chaired by President Xi Jinping.
“COVID-19 and the Ukraine crisis have brought greater risks and challenges. The complexity, severity and uncertainty of China’s economic development environment have increased,” the Politburo was quoted as saying. official new China news agency.
Financial markets have been hit hard in recent weeks by fears that the lockdowns could damage the Chinese economy and derail the global recovery.
China’s benchmark stock index jumped more than 2% and the technology-focused STAR50 index rose more than 4%. Hong Kong-listed tech stocks rose, with the Hang Seng Tech index gaining more than 7%.
The Politburo said authorities would continue their zero COVID-19 policy.
China will expand domestic demand, boost investment and accelerate infrastructure construction, said the Politburo, which pledged to ensure smooth transportation, logistics and supply chains.
It will also strive to keep economic growth within a reasonable range and achieve its social and economic targets for 2022, he said.
Analysts say more action will be needed if the government is to meet its growth target of around 5.5% for 2022.
(Reporting Kevin Yao and writing from Beijing; French version Valentine Baldassari; editing by Kate Entringer)