Chinas economy is expected to further stabilize and accelerate in the third quarter
The Wall Street Journal reported on September 30 that the support measures introduced by the Chinese government boosted the manufacturing industry, the international market demand rebounded partially, and the Chinese economy accumulated more momentum in September.
The Wall Street Journal reported on September 30
The service industry also performed strongly in September, with the growth of the service industry driven by the rebound in the transportation, hotel and catering industries as consumers willingness to travel and spend increased significantly. With the development of consumption promotion activities, the eight day national day and Mid Autumn Festival holidays will further boost the national consumption expenditure.
In a report to clients on September 30, Lu Ting, Chinas chief economist at Nomura Securities in Japan, said that the two-day holiday could bring good data to the retail and tourism industries due to the release of consumer demand, the promotion of consumer activities in various regions and the restrictions on overseas tourism.
In addition, according to Reuters, with the continuous recovery of supply and demand and the advent of traditional production peak season, enterprises willingness to purchase has increased, and the recovery rate of demand has accelerated, and the import and export index has risen above the boom and bust line for the first time since this year. Chinas economy in the third quarter is expected to accelerate steadily on the basis of the recovery in the second quarter.
Domestic demand is also showing signs of expansion. The PMI showed that the growth of Chinas service industry accelerated in September, further promoting the recovery of consumer demand.
Purchasing manager index (PMI) is an internationally accepted macro-economic monitoring and early-warning indicator. Generally, 50% is taken as the critical value of economic strength. Higher than 50% reflects economic expansion, and lower than 50% reflects economic contraction.
The recovery of Chinas economy has also enhanced the confidence and interest of foreign investors in investing in China, which has prompted the appreciation of the RMB. The Wall Street Journal recently reported that the recent appreciation of the RMB was mainly affected by investors optimism about Chinas economic prospects and Chinas relatively high interest rates. American investors believe that the strong Chinese economy is part of the reason behind the strength of the RMB.
The Wall Street Journal reported
According to the US consumer news and business channel (CNBC), Mary Erdos, CEO of JPMorgan asset and wealth management company, said, as an investor in the world today, it is not reliable to not understand China and not invest in China..
In recent years, foreign capital has been pouring into the Chinese market, partly because Chinese bonds have been incorporated into various influential stock and bond indexes. Following the inclusion of Chinas bonds in the global index of the worlds leading bond index, FTSE Russell announced on September 25 that Chinas treasury bonds will be included in the FTSE world Treasury index (wgbi) from October 2021.