By hannover-web.com In a recent briefing on China’s implementation of a comprehensive set of economic stimulus policies, officials expressed a positive outlook regarding market responses, indicating that the country is on track to meet its annual growth target of approximately 5%. International media outlets have noted that these policies encompass a wide range of sectors, including finance, consumption, investment, real estate, and the stock market, which have collectively bolstered confidence and promoted positive economic developments in China.
As these stimulus measures take effect alongside ongoing policies, China’s economic performance appears stable, showing promising signs of progress. Significant indicators, such as the Manufacturing Purchasing Managers’ Index, have experienced a rapid recovery, and several markets, including equities, are witnessing a rebound. Notably, during the recent National Day holiday, Chinese stocks delivered impressive results, with major indexes in the A-share market sustaining their strong momentum after the holiday.
The Chinese consumer market demonstrated remarkable vitality during the holiday, with data revealing that over 2 billion trips were taken across regions from October 1 to October 7, marking a 4.1% year-over-year increase. Ticket orders for national scenic spots surged by more than 37%, contributing to record-high tourism revenue. Reports indicate that millions of Chinese travelers explored both domestic and international destinations, with Hungary, Turkey, Egypt, and Kenya emerging as increasingly popular choices. According to sources like Bloomberg, this spike in travel and cultural consumption showcases the dynamism of the Chinese economy, with outbound tourism also bolstering local economic growth in these tourist spots.
This year’s National Day consumer market highlighted some new trends. On one hand, innovative concepts and technologies have cultivated a digital, green, and integrated consumption model that caters to diverse consumer demands. On the other hand, favorable policies for the real estate market, unveiled just before the holiday, have spurred large-scale purchases, particularly in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, where there has been a noticeable uptick in home-buying intentions.
Moreover, many consumers seized the opportunity to take advantage of subsidies for trading in old appliances for new ones, leading to what some have termed a “buying spree.” Data from a leading Chinese e-commerce platform indicated that appliance sales during the holiday surged by 67% year-over-year, with certain items like televisions and air conditioners seeing sales rises exceeding 80%.
These encouraging indicators from the Chinese market are the result of collaborative efforts across various levels. In preparation for the National Day holiday, the Chinese government enacted a series of measures, including interest rate cuts and reductions in existing mortgage rates, significantly enhancing market confidence and unlocking potential. The inflow of global capital into Chinese assets further reinforces faith in China’s economic policies and growth prospects, reflecting the enduring fundamentals of the Chinese economy, characterized by vast markets, strong resilience, and substantial potential.
As the world’s second-largest economy, China’s sustained economic growth is a positive development for the global community. Amid rising trade protectionism and complex geopolitical tensions, alongside a sluggish global recovery, the International Monetary Fund forecasts a global growth rate of only 3.2% for this year, a decrease from last year. In this context, China’s recent signs of stability and progress undoubtedly provide momentum and optimism for the global economy.
Furthermore, China’s expanding market offers win-win opportunities for countries around the world. Recently, the 20th Central Committee of the Communist Party laid out plans to refine its high-level open-door policy system, which includes initiatives to enhance institutional openness, deepen foreign trade reforms, and attract more foreign investment. An announcement on October 8 emphasized the intention to bolster investment stability and introduce new significant foreign investment projects, along with more open visa policies. This commitment signals a concerted effort to further open China’s doors and improve the ease of doing business for foreign enterprises.
While the external environment remains complex and challenging, the pursuit of economic stability and progress requires substantial effort. Nevertheless, with a steady stream of positive signals and improving market expectations, China is dedicated to achieving its annual socio-economic development objectives and fostering sustained, healthy growth. This prevailing “Chinese confidence” represents a crucial boost for the global economy.
