China's reform package beyond expectation: Capital Economics

LONDON - The detailed blueprint issued by the Communist Party of China (CPC) Friday showed that the leadership of China is able to get backing for a meaningful package of reforms, said Capital Economics, a London-based economic forecaster.

The document, with the title "Decisions on Major Issues Concerning Comprehensively Deepening Reforms", is clear, wide ranging and does not shy aware from areas of contention, said Capital Economics in its latest China Economics Update released Friday night.

The document was approved by the Third Plenary Session of the 18th CPC Central Committee, a four-day key meeting which ended on November 12.

"China's reform package beyond expectation," Capital Economics said.

The "market-determined" reforms in the sectors including water, oil, natural gas, electricity, transport and telecommunications will create a more competitive environment in the former state-owned industries. Within the financial sector, however, interest rate and capital account liberalization will continue, interprets by Capital Economics.

"Taken together, these steps should significantly improve the ability of private firms to compete with state-owned counterparts," said the economic forecaster.

China will widen market access for foreign investors. The country will keep investment policy stable, transparent and predictable, according to the document.