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China promises more support to boost 'tortuous' economic recovery | CNN Business

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China’s top leadership has vowed to do more to support a “tortuous” economic recovery, which has lost steam after an initial burst of activity early in the year.

The assurances, made by the Communist Party’s 24-member Politburo — a top decision making body — boosted stocks in China-related companies on Tuesday. Shares in China’s property developers, currently mired in the industry’s worst slump on record, have soared in response. In Hong Kong, the Hang Seng Mainland Properties Index was 11% higher. Shares in Country Garden, China’s biggest developer by sales last year, were more than 14% higher.

China’s leaders agreed that “the current economic operation was facing new difficulties and challenges, mainly due to insufficient domestic demand, difficulties in operating some enterprises, many hidden risks in key areas, and complex and severe external environment,” it said. They added at a meeting chaired by leader Xi Jinping that the current economic recovery was making “tortuous” progress.

 

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