The State Council, or China's cabinet, on Wednesday reiterated that current economic policies will be maintained in order to stabilize market expectations.

China's economic condition is generally stable this year and the government can steadily proceed with measures that can balance short-term growth and structural adjustments for long-term benefits, according to a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

The State Council called for optimizing investment structures in order to channel more credit and social funds to areas that can create new growth impetus in a sustainable way, such as the renovation of run-down urban areas.

"China will push forward institutional innovation in order to unleash the dividends of reform and stimulate the market to help meet this year's growth target," the cabinet said.

Wednesday's meeting focused on accelerating the renovation of dilapidated neighborhoods in order to drive investment and consumption.

Ten million households in run-down areas will be renovated over the next five years, including 3.04 million households this year, the State Council said.

The government will offer financial support, as well as preferential tax and land policies, for the renovations, which the cabinet said will help improve people's livelihoods and boost investment and consumption demand.

The cabinet called for contractors to guarantee the quality of the renovations and ensure that they will be completed on time.

The cabinet also said the government will continue to regulate the property market to ensure its healthy development.