In a recent interview, the discussion centered around China’s new stimulus policies aimed at revitalizing its economy. Observers have noted promising signs of recovery across several key sectors. The remarkable surge in the A-share market, coupled with robust growth in tourism during this year’s National Day holiday, underscores a significant economic rebound.
On the first trading day after the National Day holiday, the A-share market experienced a substantial boost, with the Shanghai Composite Index climbing by 4.59%. This increase continued a positive trend from before the holiday, as the index had already shown a remarkable rise of over 20%, marking its best performance in nearly 16 years.
Consumer confidence appears to be improving as well. Data from the Ministry of Transport indicates that during the National Day holiday from October 1-7, cross-regional travel reached 2 billion, reflecting a daily increase of 3.9% compared to the same period last year and a striking 23.1% rise relative to 2019. For example, Beijing reported record-breaking tourism arrivals and revenue during this holiday.
The recent positive momentum can largely be attributed to a series of growth-oriented policies rolled out by the government since late September. These policies aim to mitigate economic pressures stemming from slowing consumption, increasing local government debt, and ongoing vulnerabilities in the real estate sector.
Of particular interest are the new measures targeting the real estate market, a historically vital driver of China’s economic growth. Many provinces and cities have recently loosened property purchase restrictions in key markets, while the central bank has announced cuts to the reserve requirement ratio and efforts to lower interest rates on existing housing loans to relieve pressure on homebuyers.
Moreover, the government has committed to injecting additional funds into the capital market to bolster investor confidence and stabilize the market. On October 8, during a press conference held by the State Council Information Office, Zheng Shanjie, director of the National Development and Reform Commission, expressed optimism about achieving this year’s economic and social development goals, emphasizing a commitment to sustained economic growth.
“From a developmental perspective, the fundamentals of China’s economic development remain unchanged. We continue to benefit from our large market potential and strong economic resilience,” Zheng remarked.
To further stimulate investment, Zheng outlined plans to allocate 100 billion yuan from next year’s central budget and an additional 100 billion for “dual heavy” construction projects this year, aimed at facilitating local governments in accelerating project initiation and implementation. He also hinted at forthcoming measures to support small and medium-sized enterprises.
The recent developments signal that the Chinese government is well-equipped to stabilize the economy and foster growth, particularly in the face of increasingly complex global challenges. The government is prepared to deploy a variety of fiscal and monetary tools to ensure ongoing economic stability and progress.
With rising geopolitical tensions and a trend toward trade protectionism among many economies causing considerable volatility in international markets, China is proactively advancing reforms to optimize its economic structure and strengthen its economic foundation. As these policies are implemented, experts anticipate that China’s economy will not only rebound but also embark on a path toward high-quality development.
