The National Development and Reform Commission Press Conference in Beijing, China, August 4, 2023. /CFP

China's economy will maintain stable and positive growth in the second half of this year, following a sustained recovery in the first half as a raft of policies have begun to take effect, China's top economic planner said at a press conference Friday.

Yuan Da, director of the Department of National Economy at the National Development of Reform Commission (NDRC), highlighted positive changes in various economic indicators for July, such as faster growth in power generation, improving market expectations and a two-month rise in the manufacturing purchasing managers' index.

The government's policy mix effectively addressed the challenges that China's economy is facing, including an increasingly adverse impact of the international environment as well as intertwined cyclical and structural issues, said Yuan.

Listing the country's measures, Yuan said first of all, China has taken steps to extend and strengthen favorable policies ranging from tax breaks for small firms to the exemption of the purchase tax for new energy vehicles. This has boosted the confidence of businesses and created a stable policy environment for them.

Secondly, a string of targeted new measures were also rolled out, including financing support for tech firms, incentives for automobile and electronics consumption, as well as measures to bolster the private economy.

In addition, in response to new economic changes in the second quarter, another batch of measures, which are aimed at bringing down interest rates, stimulating consumption, renovating urban villages in cities and expanding the issuance of real estate investment trust products in the infrastructure sector, is being put into force in a timely manner, offering strong policy support for continued economic recovery, according to Yuan.

Going forward, policymakers will continue "to plan and study a batch of more targeted and stronger reserve policies," which will be rolled out when needed, he added.

These reserve policies will focus on six major aspects, including expanding domestic demand, spurring the real economy, promoting technological self-reliance, deepening reform and opening-up, improving people's livelihood, and defusing major risks.

Specifically, efforts will be made to spur auto purchases and private investment, as well as to meet the housing demand of the people.

Small-and-medium enterprises will receive more fiscal and financial support. Industrial upgrades will be accelerated, while the focus will be given to fostering strategic emerging sectors. More firms will also be encouraged to actively participate in crucial technological breakthroughs.

Additionally, efforts will be made to boost the private economy and advance institutional opening-up.

Fresh college graduates and key job-seeking groups will be given more assistance, and the social security net will be strengthened.

Risks and problems in the real estate sector, local government debts, and finance will be effectively managed, in an effort to diffuse any potential systemic risks.

(With input from Xinhua)