The 2026 National Two Sessions have concluded, with a clear tone for macro policies: advancing growth stabilization and high-quality transformation in parallel, charting the course for economic development. This year, China’s GDP growth target is set at 4.5%-5%, balancing practical feasibility and long-term development needs. Fiscal, monetary and industrial policies work in synergy to consolidate the foundation for economic recovery.
Fiscal policy is more proactive and effective, with accelerated issuance of ultra-long-term special treasury bonds. The scale of new local government special bonds reaches 4.4 trillion yuan, with funds accurately directed to new quality productive forces, new urbanization, livelihood projects and other fields. This not only stimulates short-term investment but also consolidates long-term development momentum. Meanwhile, tax and fee reduction policies continue to be optimized, focusing on easing the tax burden on manufacturing and micro, small and medium-sized enterprises to stimulate the vitality of market entities.
Monetary policy remains prudent and accommodative. The central bank comprehensively uses tools such as reserve requirement ratio cuts, MLF and open market operations to maintain reasonably ample market liquidity and promote a steady decline in financing costs for the real economy. For the real estate market, regulation and control policies are optimized in accordance with local conditions to support rigid and improved housing demand, resolve risks of real estate enterprises, and promote the stable and healthy development of the real estate market. Industrial policies focus on high-end, intelligent and green development, vigorously fostering emerging industries such as artificial intelligence, biomedicine and advanced manufacturing, promoting the transformation and upgrading of traditional industries, and cultivating new economic growth drivers.
This round of policy mix focuses on both current growth stabilization and risk prevention, as well as long-term transformation and momentum enhancement. With the implementation and effectiveness of policies, the sustainability of economic recovery will further strengthen, and the confidence of market entities will continue to recover.
