In this June 16, 2023 photo, visitors inspect automobile production lines inside a workshop in Fuzhou, Fujian province of China. (ZHU XINGXIN / CHINA DAILY)

BEIJING – China will adopt a raft of policy measures to sustain its economic recovery, according to decisions made at a State Council executive meeting chaired by Premier Li Qiang on Friday.

The meeting explored a basket of policy measures with a special focus on enhancing macroeconomic policy adjustments, expanding effective demand, bolstering the real economy and preventing and defusing risks in key sectors.

It was noted that China's economy has been maintaining overall recovery and growth. 

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The introduction and implementation of earlier policy measures have facilitated a gradual recovery in market demand, a continuous increase in production and supply, and overall stability in prices and employment. High-quality development has been moving forward in a well-paced manner.

To sustain the momentum of the economic upturn, the meeting stressed on more vigorous measures to strengthen drivers of development and improve the economic structure

That said, the growing complexity and severity in the external environment and the sluggish global trade and investment situation have a direct bearing on China's economic recovery, it was stated.

The meeting called for efforts to keep abreast of the shifting economic situation. More vigorous measures must be taken to strengthen drivers of development and improve the economic structure, so as to sustain the sound momentum of the economic upturn.

The meeting stressed that effective policy steps should be rolled out without delay and delivered on the ground as fast as possible. On top of this, the reserve of policy measures will be scaled up. The comprehensive effect of relevant policies should be brought out to the greatest extent.

The decisions were made after the National Bureau of Statistics on Thursday issued major economic indicators for May including fixed-asset investment, industrial output and retail sales, all of which posted slower year-on-year growth than that in the previous month.

Furthermore, the People's Bank of China, the country's central bank, also on Thursday cut the interest rate on its one-year medium-term lending facility by 10 basis points to 2.65 percent for the first time in 10 months.

The meeting also decided to step up financing for technology-based enterprises. Financial institutions will be guided to further optimize products and services for high-tech enterprises in light of their evolving needs at different stages of development.

Visitors learn about seafood at an exhibition area featuring the "Two Countries, Twin Parks" project, a joint project between China and Indonesia, in Fuzhou, Fujian province, June 16, 2023. (ZHU XINGXIN / CHINA DAILY)

The meeting said support will be channeled to high-tech startups on a priority basis. Greater efforts will be made to build such infrastructure as evaluation standards for scientific and technological innovation, intellectual property transactions and credit information systems. Financing support and risk prevention will be better coordinated to effectively maintain financial stability.

The meeting adopted the draft version of the Regulation on Supervision and Administration of Private Investment Funds, in an effort to better protect the legitimate rights and interests of investors and promote the standardized and healthy development of the sector.

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The meeting said that prominent issues will be identified and regulatory bottom lines will be drawn to deter financial irregularities such as illegal fundraising in the name of private equity.

Category-based oversight will be enforced over different types of private investment funds, especially venture capital funds. Specific policies to promote the development of VC funds will be introduced at a faster pace, according to the meeting.

Contact the writer at wangkeju@chinadaily.com.cn