As the global economy faces headwinds, China is strategically implementing incremental policies to strengthen domestic demand and investment, essential for sustaining its economic momentum. Premier Li Qiang recently expressed confidence in meeting this year's GDP targets during the China International Import Expo, reflecting a positive outlook despite international uncertainties.
Shifting away from a heavy reliance on investment, China's latest policies emphasize a balanced approach that equally prioritizes consumption. This strategic pivot aims to significantly expand domestic demand, ensuring a more resilient and sustainable growth model. Key initiatives include enhancing macroeconomic policy efficiency, supporting enterprises, stabilizing the real estate market, and revitalizing the capital market. These measures are designed to drive long-term structural reforms rather than offering short-term solutions.
Early indicators from October's economic data suggest that these policies are effectively gaining traction. The manufacturing Purchasing Managers' Index (PMI) rebounded to 50.1, signaling a revival in production activities. Additionally, the real estate sector is showing signs of stabilization, with a notable increase in housing loans and a 3.9% year-over-year rise in new and second-hand home transactions. This marks a positive turn after eight months of decline.
Furthermore, the M2 money supply saw a 7.5% year-over-year increase, and social financing rose by 1.40 trillion yuan ($194 billion). These figures underscore a strengthened willingness among enterprises to produce and a heightened risk appetite among investors, contributing to a robust economic environment as China approaches the year's end.
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Incremental policies energize China's growth as year-end approaches
cgtn.com
