China politburo avoids setting date for major economic meeting

Economic issues usually aren’t the focus of the Politburo’s January meeting, with the April, July, and December conclaves typically reserved for that topic. But a recent stock market rout, combined with a lingering property crisis, has left investors desperate for signals from Xi’s team about potential support measures.

The third plenum could offer clues about China’s longer-term plans to address structural issues facing the economy. Investors will be scouring the final readout for signals of potential policy pivots and future moves to steady the slowing economy.

The meeting normally comes in October or November, one year after China’s new leadership team is set. Delaying the meeting to 2024 marks the first time the third plenum has been held in an off-schedule year in over three decades.

Confidence in China’s economy has flagged in recent months despite efforts by the government to add stimulus, including via measures to unleash more long-term cash for banks, tighten rules on the lending of shares for short selling and broaden developer access to loans. Adding to the pessimism, China on Wednesday reported that factory activity contracted again in January.