China's president says the economy must adapt a "new normal" in the pace of growth. And that means Beijing is unlikely to step in with broad stimulus measures, analysts say.
The world's second largest economy is still in a "significant period of opportunity," but must take "timely countermeasures to reduce potential negative effects," Xi Jinping was quoted saying by the Xinhua news agency at the weekend.
"What is interesting about the 'new normal' is this line on forward guidance: 'the government must prevent risks and take timely countermeasures to reduce potential negative effects (on the economy),'" Evan Lucas, a market strategist at IG in Melbourne said in a note Monday.
"This is the clearest sign I have seen that a broad-based monetary stimulus to alleviate that current slowdown will not eventuate," he added.
Beijing last month unveiled some stimulus measures such as accelerating spending on railways and upgrading housing for low-income households to support a slowing economy.
A decision meanwhile to lower the reserve requirement ratio for some county-level rural commercial banks in April fueled talk of whether broader stimulus was in the offing.
Data released later this week are expected to show those measures have helped stabilize the economy.