Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, presided over a meeting of the Political Bureau of the CPC Central Committee on Thursday, which analyzed and studied the current Chinese economic situation and made further arrangements for economic work, sending a strong signal to stabilize the world's second-largest economy's growth.

The fundamentals of the Chinese economy and favorable conditions such as a vast market, strong economic resilience and great potential remain unchanged, but at the same time there are some "new situations and problems" in the current economic landscape, according to the meeting.

"It is necessary to take a comprehensive, objective and calm view of the current economic situation, face the difficulties squarely and remain confident," noted the meeting.

China should effectively implement existing policies, step up efforts to roll out incremental policies, further make policy measures more targeted and effective, and strive to accomplish the targets and tasks for this year's economic and social development, stressed the meeting.

It was the first time that a meeting of the Political Bureau of the CPC Central Committee to arrange economic work was held in September, which signals the Chinese leadership's commitment to stabilizing growth and managing expectations, Founder Securities, a Chinese company that provides financial services, said in an analysis report hours after the meeting.

Here are some key takeaways from the meeting.

Fiscal and monetary policies

The meeting of the Political Bureau of the CPC Central Committee stressed the need to increase the counter-cyclical adjustments of fiscal and monetary policies.

It stressed the need to issue and make good use of ultra-long special treasury bonds and local government special-purpose bonds to better leverage the driving role of government investment and to lower the reserve requirement ratio (RRR) and implement impactful interest rate cuts.

China's central bank, the People's Bank of China (PBOC), on Tuesday announced a package of monetary easing policy measures that have surpassed market expectations.

PBOC governor Pan Gongsheng said Tuesday that China will cut RRR by 0.5 percentage points in the near future, providing about 1 trillion yuan (about $141.78 billion) in long-term liquidity to the financial market. Depending on the liquidity situation in the market, RRR may be further lowered by 0.25 to 0.5 percentage points within the year, releasing up to 2 trillion yuan in liquidity and potentially helping reduce banks' liability costs by about 8 billion yuan, said Pan.

The central bank will also reduce the interest rate of seven-day reverse repurchases from 1.7 percent to 1.5 percent. Pan said the reduction was aimed at guiding the loan prime rate and deposit rate to move downwards and maintaining stability in the net interest margin of commercial banks.

Property market

The meeting of the Political Bureau of the CPC Central Committee on Thursday also pledged to make more efforts to stabilize the property market and reverse its downturn.

China's large and medium-sized cities saw month-on-month declines in both new and second-hand home prices in August, data from the National Bureau of Statistics showed.

It is essential to strictly regulate the increase in commercial housing construction, optimize existing inventory and enhance quality, said Thursday's CPC leadership meeting, which also stressed the need to boost lending for "whitelist" projects and facilitate the revitalization of idle land.

By far, commercial banks have approved over 5,700 "whitelist" projects, with approved financing reaching 1.43 trillion yuan and supporting the on-time delivery of over 4 million housing units, Li Yunze, head of the National Financial Regulatory Administration, told a press conference on Tuesday.

Thursday's meeting also stressed the importance of responding to people's concerns. Efforts should be made to adjust the policy of housing purchase restrictions, lower interest rates on existing mortgage loans, promptly improve land, fiscal, tax and financial policies, and promote the establishment of a new model for real estate development, said the meeting.

The PBOC said on Tuesday that China will lower mortgage rates on existing home loans to a level similar to those of newly issued housing loans, with the average reduction in mortgage rates for existing home loans expected to be around 0.5 percentage points.

"The new policy, which is conducive to further reducing borrowers' mortgage interest expenses, is expected to benefit 50 million households, or a population of 150 million," said Pan, the PBOC governor.

This move is expected to reduce the total interest expenses for households by approximately 150 billion yuan per year on average, which will help boost consumption and investment, he added.

The minimum down payment ratio for both first and second homes will be unified, with the nationwide minimum down payment ratio for second homes being reduced from 25 percent to 15 percent.

(Cover: A file photo of a property development project under construction in Huai'an City,