China’s cabinet released economic reform priorities on Monday, calling 2015 “a crucial year for deepening reform.” The reform priorities range from administrative procedures to boosting the yuan’s global role, while more focus will be placed on promoting financial reforms to support the real economy.
The Chinese government aims to restructure the economy to revive consumption at the expense of exports and investment, while Beijing has implemented a series of reforms earlier. These include freeing up the workforce to liberalizing China’s growing financial market.
The document containing economic reform priorities contained few detailed measures and appeared to be more of a broader outline of the areas, rather than specific policy measures.
The guidelines target areas including the Shenzhen-Hong Kong stock connect, the initial public offering (IPO) system and yuan globalisation, revived investor interest in blue chip stocks and taxation.
After Beijing announced new guidelines, which prioritize further opening of the country’s capital market and restructuring of state enterprises, China stocks rose sharply off one week lows on Tuesday.
The CSI300 index rose 3.1 percent to 4,718.97 points at the end of the morning session, while the Shanghai Composite Index gained 2.7 percent and rose to 4,400.20 points.