China leadership pledges to boost 'tortuous' economic recovery

China's top leadership has pledged to boost domestic consumption, help private businesses and bolster the struggling property sector as the world's second-largest economy makes a “tortuous” recovery post-COVID. 

According to CNN, the assurances were made by the decision-making body Communist Party’s 24-member Politburo which led to the improvement of stocks in China-related companies on Tuesday. 

In its response, shares in the country's property developers have also soared. 

In a meeting chaired by President Xi Jinping, the leaders agreed that the current economic recovery was making “tortuous” progress.

"Currently, China's economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment," Xinhua quoted the Politburo as saying. 

Following the meeting which included the country's most senior officials, the investors had been hoping there would be more concrete stimulus measures.

However, the report said that the top leaders were serious about making more decisive policy actions, said Stephen Innes, managing partner at SPI Asset Management. 

“Investors now believe the Politburo meeting sets an encouraging tone for more substantial and comprehensive policy easing down the road,” he wrote in a research note.

“Why is it different this time? Because the lawmakers acknowledged the problem. And to fix any problem, you must acknowledge there is a problem,” Innes wrote.