China kept its GDP growth target for 2014 unchanged, lowered its fixed-asset investment (FAI) target and signalled its determination to push through key reforms on the opening day of the annual National People’s Congress in Beijing. While the commitment to key reforms – including greater private-sector investment, SOE reform and financial liberalisation – should help to partially offset slowing investment growth, the 7.5% YoY GDP target for 2014 appears ambitious given the current credit climate and may require a relaxation of deleveraging efforts in order to be achievable.

The reform agenda that was set out following the third plenum is set to be implemented unevenly and according to varied timescales. Here is our take.

The Communist Party of China (CPC) announced today that it will “completely abolish residency restrictions in townships and small cities”, as part of a wide-ranging series of reforms, including an expansion of the social welfare system. We think that these reforms, alongside a series of other initiatives outlined in a 21,000-word document released today, represent one of the most ground-breaking developments in China’s reform process since 1979.

The Communist Party of China (CPC) announced today that it plans to raise the share of the profits that China’s state-owned enterprises (SoEs) transfer to the central government to as much as 30% by 2020 from the current 5% to 20%. We think this reform, seen as a bellwether for the strength of Beijing’s intentions to reform SoEs, adds more evidence to interpretations that the third plenum was as a landmark in China’s reform process.

The recently concluded third plenum set up a groundbreaking list of reforms that could have a historic effect on China’s economy, governance and society. We set out the key quotes contained in the communique and the potential implications for reform.

We see huge significance in the third plenum’s likely reform agenda.

Much hope for liberalisation attends the launch of the Shanghai Free Trade Zone, but the devil may be in the lack of detail.

Local commentators debate the arrests of a slew of high-ranking officials on corruption charges.