China looks to transition from high-speed to high-quality growth

China looks to transition from high-speed to high-quality growth
Chinese President Xi Jiping has pledged further liberalization of the world's second-biggest economy, making China more open to foreign investors.

"China's open door will not be closed, it will be only opened wider," Xi said, speaking at the opening of the once every five years Communist Party Congress on Wednesday.

The government will "clean up rules and practices that hinder a unified market and fair competition, support development of private firms and stimulate vitality of all types of market entities," Xi added.

However, China remains a relatively closed market for foreigners, who own under two percent of equities and bonds, said Ben Luk, State Street Global Markets' global macro strategist.

While the Chinese president pledged support for smaller private businesses, he also urged for bigger and stronger state-owned companies.

The government will "promote strengthening, improvement, and expansion of state capital, (and) effectively prevent loss of state assets, deepen reform of state-owned enterprises, development a mixed-ownership economy and cultivate globally competitive world-class firms," Xi said.

As Beijing wants to spur further economic growth by consumers, Xi has announced an intention to boost the middle class and narrow the gap in development between rural and urban areas.

Investors in China are also worried that a mortgage boom in China has become more and more like the real estate bubble in the United States 10 years ago, which led to a global crisis. The Chinese are borrowing as much money as possible even though they cannot afford the repayments.

During his speech, Xi said China will keep to the principle that houses are for people to live in, not for speculation.