1. Enhancing confidence by fiscal policy

 

This year, China continues to implement a proactive fiscal policy and prudent monetary policy, which is an important deployment to deal with risks and challenges and improve the overall economic performance. At present, as the international environment is more complex and severe, the triple pressure of domestic demand contraction, supply shock and weakening expectation has increased, and the foundation of economic recovery is not yet solid. Increasing macro-adjustment efforts has become the inevitable requirement to stabilize the fundamentals.

 

2. Leveraging stock market to stabilize expectations and promote investment 

 

Stock market plays a major role in stabilizing expectations and promoting investment. We should deepen system reform, focusing on information disclosure, investor structure, long-term investment incentives, and public supervision, etc., to improve market valuation system and enhance the market's investment attractiveness, innovation drive and all-round competitiveness. This year, the Chinese stock market will continue to play an active role in the listing and financing of enterprises, mergers and acquisitions, and the optimization of the industrial and supply chain.

 

 

1. Recently, the Ministry of Commerce and the People's Bank of China jointly issued the Notice on Further Supporting Foreign Trade Enterprises to Expand the Cross-border Use of RMB to Facilitate Trade and Investment, which requires facilitating the use of RMB denominated settlement for all types of cross-border trade and investment and promoting banks to provide more convenient and efficient settlement services.

 

2. The Guide to the Innovative Development of Intelligent Computing Centers jointly issued by the State Information Center and relevant departments shows that more than 30 cities are currently building or proposing to build intelligent computing centers, and the investment in intelligent computing centers can drive the growth of the core artificial intelligence industry by about 2.9-3.4 times during the 14th Five-Year Plan period.

 

3. Recently, 17 departments including China National Intellectual Property Administration have issued opinions on accelerating the high-quality development of intellectual property services, and by 2030, there will be more than 2,000 major organizations engaging in intellectual property services, and the industry's business income will exceed RMB 500 billion.

 

1. According to the People’s Bank of China, as of the end of the third quarter of 2022, a total of 214.093 billion bank accounts were opened, an increase of 0.85% compared with the previous quarter. Among them, a total of 14.002 billion personal bank accounts were opened, an increase of 0.84% compared with the previous quarter.

 

2. Data from the State Administration Foreign Exchange showed that as of the end of December 2022, China’s foreign exchange reserves stood at USD 3127.7 billion, increasing 0.33%, USD 10.2 billion from the end of November.

 

3. According to the State-owned Assets Supervision and Administration Commission of the State Council, in 2022, the annual operating revenue of central administered SOEs reached RMB 39.4 trillion, up 8.3%; with total profit of RMB 2.55 trillion, up 5.5%, and net profit of RMB 1.9 trillion, up 5%. The growth rate of economic benefit is higher than that of GDP.   

 

4. According to the Ministry of Commerce, from January to November 2022, China’s service trade reached RMB 5404.61 billion, up 15.6% year on year. 

 

5. According to China General Chamber of Commerce, China’s Retail Prosperity Index in January 2023 was 50.3%, up 1.6 percentage points compared with the previous month, ending the previous decline. 

 

6. As of the end of November 2022, the total assets of local administrated SOEs amounted to RMB 205.5 trillion, up 10.1% year on year, with operating revenue of RMB 33.7 trillion, up 8.1% year on year.

 

7. Data from China Association of Automobile Manufacturers showed that China’s auto production and sales reached 27.021 million units and 26.864 million units respectively, rising 3.4% and 2.1% respectively year on year. 

  

8. Data from the People’s Bank of China showed that in 2022 it used a variety of monetary policy tools to maintain a reasonable abundance of liquidity, and two RRR (requirement reserve ratio) cuts released long-term liquidity of more than RMB 1 trillion. 

 

9. Report from China Federation of Logistics and Purchasing showed that in December 2022, prices of most key commodities rose. Among them, the prices of iron ore spot, iron ore futures, and rebar futures rose 15.74%, 10.89%, and 10.38% respectively from previous month.

 

10. According to the Report on the Operation of Supermarket Chains (2022) released by China Chain-Store & Franchise Association, in 2020 the number of  member stores of major brands was less than 40, in 2021 the number was more than 120 stores, and in 2022, it is expected to be more than 180.

 

(Information Source: Economic Daily)