Foreign Financial Institutions Express Optimism About China's Economic Prospects
Foreign financial institutions have shown confidence in China's economic outlook, recognizing the benefits of the country's pursuit of high-quality growth.
TroibNews 
Foreign financial institutions have voiced their optimism regarding China's economic future, attributing this to the nation's ongoing high-quality growth initiatives.
Recent figures from the National Bureau of Statistics (NBS) indicate that China's GDP grew by 5 percent year on year in the first half of the year.
Seasonally adjusted data reveals a 0.7 percent GDP growth in the second quarter, marking the eighth straight quarter of positive growth.
"The Chinese economy's comparative advantage largely comes from research and innovation," noted Wu Yibing, head of China for Singapore’s state investment company Temasek.
Wu highlighted that, historically, China's manufacturing strength has been due to its ample labor supply and high production efficiency.
During the first half of the year, the value-added industrial output, a key economic measure, saw a 6 percent year-on-year increase, as reported by the NBS.
A deeper look into the data reveals a 7.8 percent rise in the output of the equipment manufacturing sector, which accounts for a third of the total industrial output.
High-tech manufacturing also exhibited significant growth, with its output up 8.7 percent in the first half, based on NBS findings.
The production of service robots, smartphones, and new energy vehicles increased by 22.8 percent, 11.8 percent, and 34.3 percent respectively over the first six months.
Bloomberg, in a July 16 report, mentioned China’s long-term high-quality growth pursuit yielding positive results. "Advances in electric vehicles, solar panels and other high-tech industries have helped keep economic expansion within reach of its targeted pace of around 5 percent," highlighted the report.
In addition to industrial output and high-end manufacturing, investment and exports are considered significant drivers of China's economy by various institutions.
Ji Mo, chief China economist of DBS Group Research, mentioned that effects of large-scale equipment upgrades and the trade-in of consumer goods are fostering effective investment, along with the issuance of local government special bonds and ultra-long special treasury bonds.
Data indicates a 5.4 percent year-on-year rise in infrastructure investment and a 9.5 percent increase in manufacturing investment during the January-June period.
Net exports of goods and services contributed 0.7 percentage points to GDP growth in the same timeframe.
Commenting on China's role in the global economy, Liu Jing, chief economist for Greater China at HSBC, pointed out that China is becoming more crucial as a major global goods supplier and has expanded its market share despite trade restrictions.
The accelerated development of new quality productive forces, policy effect release, and recovering external demand have bolstered China’s economy. However, overseas financial experts suggest further reform and opening up are necessary to tackle challenges like insufficient effective demand and a complex external environment.
James del Carmen contributed to this report for TROIB News
Recent figures from the National Bureau of Statistics (NBS) indicate that China's GDP grew by 5 percent year on year in the first half of the year.
Seasonally adjusted data reveals a 0.7 percent GDP growth in the second quarter, marking the eighth straight quarter of positive growth.
"The Chinese economy's comparative advantage largely comes from research and innovation," noted Wu Yibing, head of China for Singapore’s state investment company Temasek.
Wu highlighted that, historically, China's manufacturing strength has been due to its ample labor supply and high production efficiency.
During the first half of the year, the value-added industrial output, a key economic measure, saw a 6 percent year-on-year increase, as reported by the NBS.
A deeper look into the data reveals a 7.8 percent rise in the output of the equipment manufacturing sector, which accounts for a third of the total industrial output.
High-tech manufacturing also exhibited significant growth, with its output up 8.7 percent in the first half, based on NBS findings.
The production of service robots, smartphones, and new energy vehicles increased by 22.8 percent, 11.8 percent, and 34.3 percent respectively over the first six months.
Bloomberg, in a July 16 report, mentioned China’s long-term high-quality growth pursuit yielding positive results. "Advances in electric vehicles, solar panels and other high-tech industries have helped keep economic expansion within reach of its targeted pace of around 5 percent," highlighted the report.
In addition to industrial output and high-end manufacturing, investment and exports are considered significant drivers of China's economy by various institutions.
Ji Mo, chief China economist of DBS Group Research, mentioned that effects of large-scale equipment upgrades and the trade-in of consumer goods are fostering effective investment, along with the issuance of local government special bonds and ultra-long special treasury bonds.
Data indicates a 5.4 percent year-on-year rise in infrastructure investment and a 9.5 percent increase in manufacturing investment during the January-June period.
Net exports of goods and services contributed 0.7 percentage points to GDP growth in the same timeframe.
Commenting on China's role in the global economy, Liu Jing, chief economist for Greater China at HSBC, pointed out that China is becoming more crucial as a major global goods supplier and has expanded its market share despite trade restrictions.
The accelerated development of new quality productive forces, policy effect release, and recovering external demand have bolstered China’s economy. However, overseas financial experts suggest further reform and opening up are necessary to tackle challenges like insufficient effective demand and a complex external environment.
James del Carmen contributed to this report for TROIB News
