Chinas economic resilience drives global recovery

category:Finance
 Chinas economic resilience drives global recovery


Excellent economic recovery in China

The International Monetary Fund predicts that the global economy will shrink by 4.4% this year, and China will be the only major economy in the world to achieve positive growth.

First, the driving effect of innovation on development has been strengthened. Under the impact of epidemic situation and interference of some factors, the supply chain of industrial chain was blocked. At present, bad things are turning into good things. Enterprises and science and technology circles have comprehensively improved their ability to innovate in science and technology, worked hard to solve the neck sticking problem and promote industrial upgrading. In the process, we will continue to consolidate the international supply chain.

Second, more attention should be paid to the development of new industries around the final demand. Meeting the final consumption demand plays an important role in economic development. With Chinas per capita GDP moving forward to a higher level, the middle-income groups clothing, food, housing, transportation, education, medical care, etc. contain huge consumption potential. Investment is transforming in this direction, and the supply system to meet the basic and high-quality demand of people is gradually optimized.

Third, pay more attention to green development. The important enlightenment of epidemic situation is to promote the harmony between human and nature. We should promote green development, build a green, low-carbon and circular economic system, vigorously develop clean energy, renewable energy and green environmental protection industries, and enhance the sustainability of development.

Nomura China pointed out in the special report on Chinas dual cycle strategy (DCS) released on the same day that China can realize economies of scale and scope of many products with a huge unified market of 1.4 billion people. Dual cycle can be a realistic solution for China during the outbreak by emphasizing matching domestic demand with domestic supply.

The resilience of Chinas economy will also contribute to the recovery of the world economy

While the rest of the world is still trying to contain the epidemic and try to restart the economy, China has entered a new stage. Spain pioneer website published an article said.

For example, in the early stage of the epidemic, more than 7600 key enterprises directly involved in epidemic prevention were supported by the 300 billion yuan special re loan, which strongly supported the task of ensuring the supply of medical and living materials; in the stage of returning to work and production, the rediscount amount of 500 billion yuan of re loan supported nearly 600000 enterprises to resume work and production; in the stage of accelerating the recovery of production and life order, the rediscount amount of 1 trillion yuan of inclusive re loans was obtained It is expected to support more than 2 million enterprises and other market entities.

It is understood that, with the support of two monetary policy instruments that are directly connected to the real economy, banks are actively handling enterprise loans, deferred repayment of principal and interest, and inclusive credit loans for small and micro enterprises. As of the end of August, the bank has extended the loan principal of 1.57 million market entities and the loan interest of 810000 market entities, involving a total of 3.7 trillion yuan of loan principal and interest; from March to August, the bank has issued more than 30 million inclusive small and micro credit loans, totaling 1.89 trillion yuan, 630 billion yuan more than the same period of last year.

Liu he stressed that the next step is to continue to conform to the new trend, build a new pattern, and focus on several aspects of work.

The first is to adhere to moderate and flexible monetary policy. The second is to vigorously develop the multi-level capital market. We should adhere to the nine character policy of system building, non intervention and zero tolerance, improve the basic system of capital market, improve the quality of listed companies, optimize the market structure, and strengthen information disclosure and investor protection; third, we should build a multi-level banking institution system. We should speed up the optimization of the operation and development mode of big banks and improve their ability to serve the real economy. We will deepen the reform of small and medium-sized banks and improve the corporate governance structure. The fourth is to give full play to the role of financial science and technology. Big data, cloud computing, blockchain, artificial intelligence and other technologies are profoundly changing the future financial ecology. We should seek advantages and avoid disadvantages to promote the healthy development of financial science and technology; fifth, we should continue to promote the comprehensive opening up.

Chinas economy and finance are inseparable from the world, and the world is inseparable from China

Opening up and cooperation is the only way to achieve financial prosperity and development. It is impossible to cultivate truly competitive financial institutions and financial markets in a closed environment.

Chinas economy and finance are inseparable from the world, and the world is inseparable from China. We will continue to adhere to the principle of all-round opening-up, adhere to the principle of marketization, rule of law and internationalization, introduce more high-level international competitors in banking, insurance, securities, asset management and other fields, create a market environment of fair competition, and fully connect with international best practices. Liu he said.

This means that a new round of development and a higher level of reform and opening up are coming.

In fact, even novel coronavirus pneumonia is at its worst, the pace of Chinas financial opening to the outside world has not stopped. Prior to that, more than 50 opening-up measures in the financial sector have been gradually implemented and effective. The first wholly foreign-owned insurance holding company, a wholly foreign-owned life insurance company and a foreign-owned financial management company have been approved to set up.

Guo Shuqing, Secretary of the Party committee of the central bank and chairman of the China Banking and Insurance Regulatory Commission, said at the Financial Street Forum that the next step is to unswervingly expand the opening of the financial service industry, continuously optimize the institutional arrangements of the financial market, deepen international economic and financial cooperation, and continuously enhance the competitiveness of the financial system in the process of opening up. We welcome foreign institutions with good market reputation and credit history, especially those with characteristics and expertise in risk control, pension management, consumer finance, wealth management and health insurance to enter China, so as to stimulate market vitality. We also support Chinese funded financial institutions to go global and develop their business in the host country in accordance with the law.

Liu he stressed that it is very important to strengthen international cooperation under the current situation. We must foster a strong sense of a community of common destiny for mankind, reform and improve global economic governance and promote financial deepening, adhere to multilateralism, promote world economic development, and maintain lasting peace for mankind. In particular, we should strengthen cooperation in response to the epidemic situation, strengthen macro policy coordination, and promote the steady recovery of the global economy. Cheng Shi, chief economist of ICBC international, said that looking forward to the future, the process of building a new pattern of double cycle is essentially a historical process of deepening the new round of reform and opening up from top-level design to grassroots practice. No matter how the global economic and political game evolves, Chinas door to opening up will not be closed. On the contrary, Chinas economy is expected to continue to adhere to the concept of amity, sincerity, mutual benefit and inclusiveness and establish more abundant interest ties with the global system. While making good use of the two markets and resources at home and abroad, China will actively participate in global economic and financial governance, promote the development of a community of shared future for mankind, and fundamentally reduce the retrogression risk of globalization. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679

Liu he stressed that it is very important to strengthen international cooperation under the current situation. We must foster a strong sense of a community of common destiny for mankind, reform and improve global economic governance and promote financial deepening, adhere to multilateralism, promote world economic development, and maintain lasting peace for mankind. In particular, we should strengthen cooperation in response to the epidemic situation, strengthen macro policy coordination, and promote the steady recovery of the global economy.

Cheng Shi, chief economist of ICBC international, said that looking forward to the future, the process of building a new pattern of double cycle is essentially a historical process of deepening the new round of reform and opening up from top-level design to grassroots practice. No matter how the global economic and political game evolves, Chinas door to opening up will not be closed. On the contrary, Chinas economy is expected to continue to adhere to the concept of amity, sincerity, mutual benefit and inclusiveness and establish more abundant interest ties with the global system. While making good use of the two markets and resources at home and abroad, China will actively participate in global economic and financial governance, promote the development of a community of shared future for mankind, and fundamentally reduce the retrogression risk of globalization.