Subdued Demand Sparks Hopes for Stimulus Package in China
China's economy is bracing for transformative changes as subdued demand has led to a major downturn in industrial profits. The National Bureau of Statistics (NBS) revealed a staggering 27.1% decrease in profits for major industrial firms in September from the previous year. This marks the steepest decline since March 2020. Over the first nine months of 2023, industrial profits dipped by 3.5% year on year to 5.23 trillion yuan, ending a streak of gains.
As pressures from weak demand and persistent deflation loom large, Beijing is expected to announce a comprehensive stimulus package. A recent policy initiative included significant lending and mortgage rate cuts aimed at invigorating sustainable industries and boosting consumer spending.
Looking ahead, the upcoming National People's Congress Standing Committee meeting from November 4-8 is set to outline additional fiscal measures. Finance vice-minister Liao Min suggested that the scale of Beijing's response would be substantial, with emphasis on stabilizing the economy and enhancing livelihoods amidst a sluggish recovery.
Moreover, amid challenges, the hi-tech manufacturing sector displayed resilience, with notable profit growth in areas such as intelligent systems and wearable devices. The Global Wealth Management Forum's leadership remains optimistic about the impact of the pending stimulus.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.