Foreign banks more bullish on Chinese mkt

BEIJING — As the raft of incremental policies implemented by the Chinese authorities since late September, as well as earlier policies aimed at vitalizing growth momentum, have started making a sustained and positive impact, foreign banks are becoming increasingly bullish concerning the Chinese market.

Bill Winters, group chief executive of Standard Chartered, told Xinhua News Agency that policy measures introduced by the Chinese authorities have been highly impactful in reducing financing costs, especially in the property sector, while such initiatives are also sending a signal that the country's leadership is prepared to act if there are any signs of concern.

"The policy measures had the desired effect of changing the sentiment around, both within consumers and investors in China," Winters noted.

Economists and analysts believe these policies will have profound and far-reaching implications for the Chinese economy.

"We expect the strong policy measures since September, ranging from rate cuts to public outlays, will help the Chinese economy maintain 5 percent growth in 2024," said Ji Mo, chief China economist of DBS Group Research, adding that Chinese policymakers are focused both on the short-term and providing the foundations for long-term continued growth.

Being more bullish about the Chinese economy, multiple foreign institutions have revised their China 2024 growth forecasts upwards.

UBS raised its China 2024 growth forecast to 4.8 percent from 4.6 percent, while Goldman Sachs lifted China's GDP growth prediction this year from 4.7 percent to 4.9 percent. Nomura also raised its China annual GDP growth forecast to 4.8 percent from 4.7 percent.