Chinese Communist Party kicks off 5th plenum focused on economy

Top-ranking Chinese officials kicked off a four-day assembly on Monday to set the country’s policy agenda for the next five years.

The 376 highest ranking members of the country’s Communist Party will hold their fifth plenum in Beijing between 26-29 October.

Seven plenary meetings of the Communist Party's central committee are scheduled regularly between the party congresses that are held every five years.

China-watchers expected the gathering of policymakers to focus on measures to reduce the state’s footprint in the economy and the need for further structural reforms as the Asian giant attempted to transition away from exports and infrastructure investment.

In particular, markets were focused on the target for gross domestic product growth which would come out of the meeting, with some bandying about the possibility a rate of expansion of 6.5% being set as the objective for the coming five-year plan.

"China’s Fifth Plenum will set out the medium-term plan for the economy to address its structural problems, but will not solve the problems immediately," said RBS's analyst Alberto Gallo.

"This means emerging economies that are dependent on China and commodities will remain challenged over the long term. Nevertheless, positive headlines from the meeting could temporarily overshadow these fundamental weaknesses."

The meetings are taking place against a large anti-corruption drive on the part of Beijing, which some said may have been diverting attention from economic matters.

The one-week delay in the date of this plenum versus those in other party congresses triggered speculation that some reshuffling of personnel might be taking place, although there were contradictory reports as to whether any of the party’s key figures might be affected.

The results of the plenum are usually announced at the end of the meetings, on 29 October on this occasion, by the state media.