Data show economy on path to steady recovery

That China's GDP grew by 4.6 percent, higher than the 4.5 percent market expectations, in the third quarter shows government policies are having the desired effect, even though the growth rate was slightly lower than the 4.7 percent in the second quarter, according to the macroeconomic data released by the National Bureau of Statistics on Friday.

Compared with previous periods, the latest round of policies has increased in intensity and scope, as the authorities have taken steps to boost market confidence through measures such as reducing the reserve requirement ratio and interest rates, lowering the interest rate on existing housing loans, and issuing a stimulus package.

According to a NBS survey that covered about 100,000 large enterprises, the percentage of industrial enterprises above designated size optimistic about their performance in the fourth quarter increased by 1.3 percentage points month-on-month and 0.9 percentage points year-on-year. Also, the condition of some key enterprises, both in the traditional and emerging industries, has improved significantly, reflecting that market expectations are turning positive.

The financial market, too, has reacted positively, with the stock market seeing a reversal, with the transaction volume in the Shanghai and Shenzhen stock exchanges increasing by 32.7 percent in September after declining 15.3 percent in August.

Besides, the real estate sector is becoming more active, as the narrowing decline in sales in terms of area and amount shows.

In fact, incomplete data for October show that both new and secondary housing transaction volumes in key cities have seen a significant year-on-year increase, which means the real estate sector is showing early signs of stabilization.

However, China's exports may continue to decline in the fourth quarter. But the stimulus package issued by the government will help boost the country's economic recovery. As the effects of these policies unfold, recovery is likely to stabilize in the fourth quarter and help China realize its GDP growth target of about 5 percent.