Investors' rising confidence in China boost for global recovery

Recent economic and financial data show that in September, China's consumer price index was flat year-on-year, up 0.2 percent month-on-month, and the producer price index fell 2.5 percent year-on-year, but rose 0.4 percent month-on-month; the yuan loans increased by 2.31 trillion yuan ($317.43 billion), 176.4 billion yuan less than the same period last year, but social financing increased by 4.12 trillion yuan, 563.8 billion yuan more than the same period last year.

Judging from these macroeconomic indicators and the general trend of economic development, the fundamentals of China's development have not changed, and the advantages of its economy continue to improve rather than worsen, and the new economic drivers are growing faster.

As the "combination" of a series of pro-growth policies gradually work, China's economic resilience will be further enhanced, and its economic recovery further consolidated.

First of all, the purchasing managers' index, a leading indicator of the economy, has taken the lead in releasing positive signals. In September, China's manufacturing PMI, nonmanufacturing business activity index and composite PMI output index were 50.2 percent, 51.7 percent and 52 percent, respectively, up 0.5 percentage points, 0.7 percentage points and 0.7 percentage points from August, showing a rebounding economic prosperity level. The development index of China's small and medium-sized enterprises also returned to the rising range in the third quarter. That, together with the macroeconomic sentiment index that reflects business confidence standing at 98.9, up 0.5 points from the previous quarter, indicates a rising confidence and investment willingness of SMEs.

China's improving economic data has further strengthened international confidence on its economy. A number of international financial institutions recently raised their growth forecasts for China's GDP to about 5 percent this year. In its World Economic Outlook 2023, the International Monetary Fund predicted that China still remains the largest engine of global economic growth.

However, China's economic development still faces numerous challenges. It still needs to strengthen the combination of macro policies, improve the precision of policies, accelerate the implementation of adopted policies and foster new drivers and advantages for high-quality development. All those will provide strong support for achieving its economic and social development goals, and inject continuous impetus into world economic recovery.