Premier Li underscores economic challenges at econ-focused symposium

On Tuesday, Premier Li held a symposium on the economy with a group of experts and entrepreneurs.

Heads up: This meeting wasn't focused on the upcoming Third Plenum – the Plenum's reform agenda will have been finalized weeks ago.

• Instead, the symposium was held to solicit policy advice ahead of the Politburo's econ-focused July meeting.

The Premier acknowledged that economic headwinds are still strong:

• “We must clearly see that the factors affecting economic growth are more complex than before.”
• “The difficulties and problems…need to be solved with great efforts.”

Get smart: These comments likely reflect the wider mood among top leadership.

• Weak confidence among households and businesses continues to dog the economy.
• And the property market mess remains a massive drag on overall macro performance.

The upshot: The July politburo meeting gives officials an opportunity to announce moderate cyclical support for the economy, such as ramping up the property buy-back scheme or expanding the scope of the consumer trade-in initiative.

Get smarter: But next week's Third Plenum reforms present the real opportunity to reignite confidence among ordinary people and businesses.

• If leaders stay cautious on the reform front, the broader economic mood will further sour regardless of whether short-term support is announced in July's Politburo meeting.