China must work to strengthen its economy while also guarding against financial risks, the country’s top leaders said in a special meeting convened amid rising concerns about the near-term growth outlook.

The Politburo Standing Committee, the highest decision-making body in China, met to discuss economic policy two weeks after reporting that growth slid to 7.7 per cent in the first quarter, an unexpected decline from its 7.9 per cent pace in the final quarter of 2012. A survey of purchasing managers published by HSBC this week suggested that momentum has remained sluggish in April.

The politburo pledged to bolster domestic consumption and to make it easier for companies to gain approval for investment projects. At the same time, it vowed to standardise the financing mechanism for local governments, addressing concerns about the mountain of debt they have accumulated through backdoor channels.