(Yicai Global) April 29 -- Stock markets in China rallied today as investor sentiment improved after the Communist Party’s Political Bureau gave a positive assessment of the country’s economic performance so far this year and vowed further action to steady the economy.

The leading benchmarks all climbed. The Shanghai Composite Index rose 2.4 percent to 3,047.06 points, back above the psychological 3,000 level, while the tech-heavy Star 50 soared 4.9 percent to 947.15. The Shenzhen Component Index jumped 3.7 percent to 11,021.44, and the ChiNext Index surged 4.1 percent to 2,319.14.

Shares related to the e-commerce, education, and data security sectors led the advance, with more than 200 individual stocks soaring by the daily trading limit of 10 percent.

The Politburo meeting stressed the need to intensify macro policy adjustments to stabilize the economy, realize the goal of economic and social development for the whole year, and keep the economy operating within a reasonable range, according to a briefing note released by Xinhua News Agency at noon.

That means Beijing will stick to the 5.5 percent economic growth target for this year despite the resurgence of Covid-19 in China and the Russia-Ukraine conflict, Li Zongguang, chief economist at China Renaissance, said in an interview with Yicai Global.

To hit the target, the government will bring out more policies, use various policy tools, and increase regulation, while maintaining support for the economy, Li noted.

To provide support for the economy, China must step up infrastructure building and bring consumption into full play to drive the economic cycle, the briefing note pointed out.

The Politburo meeting reaffirmed that housing is for living, not for speculation, adding that the central government agreed that local authorities can adjust policies based on their actual situations to meet local housing needs.

This is the first time that the central government has proposed to support the demand for improved housing, Li noted. Local authorities will implement policies according to their particular circumstances, further easing property market curbs, he predicted.

Regarding Covid-19 control, the Politburo stressed that local governments must have a coordinated national response to ensure the smooth flow of transport and logistics. They must also guarantee the normal running of key supply chains and businesses that supply essentials and vital infrastructure.

The meeting also reiterated that the central government would issue a package of bailout and support policies for industries, micro, small and medium-sized enterprises, and individual businesses that have been seriously affected by the coronavirus.

China will stick to its dynamic zero-Covid strategy because it can “protect people’s lives and health to the greatest extent and reduce the pandemic’s impact on economic and social development as much as possible,” the briefing note said.

Editors: Tang Shihua, Peter Thomas