China to push ahead with fiscal reforms as it sets economic growth at 7.5pc

Premier Li Keqiang today signaled that China will push ahead with key fiscal and financial reforms that should eventually allow the country to cut its dependence on the fixed asset investment that currently drives economic growth and has inflated a damaging property market bubble.

In his first government working report to the National People’s Congress, Li outlined the key economic growth targets for the year and pledged to further overhaul the exchange rate, interest rate, and fiscal system.

He also said more private capital would be injected into state-owned enterprise sectors.

Most economic targets remained unchaged, with the economy predicted to grow 7.5 per cent, highlighting that China's priority remains to ensure stability.

No further steps were taken toward tightening the property market, although Li warned that real estate prices in some cities had been rising too fast.