China's economy grew by 4.6 percent in the third quarter, down 0.1 percentage point from the previous three-month period, while consumption and factory output figures beat forecasts last month.

Officials addressing a post-data press conference on Friday expressed confidence the economy can achieve the government's full year growth target of around 5 percent, underpinned by further policy support and another cut to the amount banks must hold in reserve.

"Based on our comprehensive assessment, the economy in the fourth quarter is expected to continue the stabilisation and recovery trend that occurred in September. We are fully confident in achieving the full-year target," Sheng Laiyun, deputy head of The National Bureau of Statistics (NBS), told reporters.

The NBS also said in a statement that the economy was “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development.

China's growth rate in the first three quarters of the year was 4.8 percent.

On a quarterly basis, the economy expanded 0.9 percent in the quarter that ended in September, up from 0.7 percent growth in the previous quarter.

For the first three quarters, China's factory output rose 5.8 percent, while retail sales expanded 3.3 percent compared to the same period last year.

However, property investment sank 10.1 percent and the value of new home sales plunged 22.7 percent.

Ahead of the release of the new data, state media said China’s top banks had cut interest rates on yuan deposits for the second time this year as part of a move to boost lending.

Mainland policymakers have in recent weeks unveiled a raft of measures to funnel cash into the economy including a string of rate cuts and loosened restrictions on home-buying.

The central bank on Friday launched one such measure – a swap facility for funds and insurers with an "initial application quota exceeding 200 billion yuan", state media said.

The mechanism implemented by the People's Bank of China (PBoC) will provide greater liquidity for capital markets, which policymakers hope will offer support for the wider economy.

And in a possible sign of more relief to come, PBoC chief Pan Gongsheng said on Friday that officials were considering a further cut to the amount commercial lenders must hold in reserve before the end of the year.

Last week, China's finance minister pledged to "significantly increase" debt to revive growth, but left investors guessing on the overall size of the stimulus package. (Agencies)

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Last updated: 2024-10-18 HKT 13:21