China's economy is the talk of the town this week in Beijing — at least for a couple of hundred top officials of the Chinese Communist Party and their alternates.
The four-day meeting is called a "plenum." Party leadership holds them on various topics in between the larger Party Congresses, which happen every five years.
Economic reform is the theme of this one — and economic news continues to be disappointing. Government figures that were released on Monday show slowing growth in the quarter ending in June — up 4.7%, which is below market expectations.
New home sales dropped sharply at the fastest pace in nine years.
The significance of China’s housing market is wide-ranging. It’s part of a broader picture, not only of stalled consumer demand and high unemployment but a property crisis with broader financial impacts. That includes the exposure of institutions to bad loans, not only regional banks but also local governments.
As for the plenum, most policy analysts are not expecting a short-term economic quick fix.
While the Communist Party’s Central Committee can advise, there’s no question the actual decisions remain firmly in the hands of Xi Jinping.
