On Friday, the National Bureau of Statistics released data showing that major economic indicators such as consumption, services, and imports and exports have all significantly rebounded, consolidating the positive trend of economic stabilization and recovery since September.
First, the momentum of market sales recovery is evident. Influenced by the consumer subsidy policy for trade-ins, the retail sales of household appliances, automobiles, furniture, and office supplies in units above a designated size in October have seen a quicker year-on-year growth compared to September, driving the total retail sales of consumer goods to increase by 1.2 percentage points to 4.54 trillion yuan ($627.9 billion).
Second, investment growth has also become more pronounced. Driven by large-scale equipment updates, investment in equipment and tools purchases from January to October increased by 16.1 percent year-on-year, contributing to a 2.1 percentage point increase in total investment, with a contribution rate of over 60 percent.
Encouraged by the accelerated implementation of existing policies and the introduction of a new package of policies, the stock and real estate markets both saw more active transactions in October, with the transaction volume and amount in the Shanghai and Shenzhen stock markets both having grown about 1.5 times year-on-year. In the real estate market, new home sales improved, and secondhand housing transactions significantly increased, enhancing market activity.
The significant rebound in current main economic indicators is largely due to the driving effect of economic policies. After the introduction of a series of regulatory measures, the domestic real estate market has shown signs of stabilization. In October, among 70 major and medium-sized cities, the number of cities where the sales prices of new commercial residential buildings rose month-on-month increased by four compared to the previous month. The drag on economic growth from real estate will gradually diminish.
Second, the year-on-year growth rate of narrow infrastructure investment in October rose from 2.2 percent to 5.8 percent, indicating that local infrastructure investment has begun to recover. In addition, the recovery of the service industry is apparent, with the service industry production index in October growing by 6.3 percent year-on-year, accelerating by 1.2 percentage points from the previous month.
China must focus on expanding domestic demand to stabilize economic operations, promote structural adjustments, and achieve the transition from old to new drivers of growth. In this process, maintaining stable economic operation is the premise and foundation of all policy goals. Therefore, the market should have confidence that China will take various scientific and reasonable measures to promote the steady and positive progress of the national economy.
-21st Century Business Herald