MNI China Press Digest Dec 29: Monetary Policy, Growth, FDI

Highlights from Chinese press reports on Friday:

• The People’s Bank of China said it will step up macroeconomic policy adjustments to support the economy and promote a rebound in prices, following a quarterly meeting of its monetary policy committee, according to a statement published Thursday on the PBOC website. It will implement prudent monetary policy accurately and effectively, and focus on counter- and cross-cyclical adjustments to expand domestic demand and boost confidence. The central bank will stabilise expectations on the currency by correcting procyclical behavior and guarding against overshooting risks.
• China’s economic growth may fall between 4-5% in 2024, and could find 5% difficult to reach, due to insufficient demand restricting growth, said Zhang Junkuo, former deputy director of the Development Research Center of the State Council. The real-estate market will find a rebound challenging without a new development model, which will continue to drag down fixed-asset investment growth, while the recovery of consumer demand requires the gradual improvement of the economic and employment situation. Authorities must enhance the persistence and effectiveness of support policies and promote reform and opening up in key areas such as establishing a unified urban and rural construction land market, said Zhang. (Source: 21st Century Business Herald)
• Foreign investment in China remains at historically high levels, with the actual use of foreign capital reaching CNY1.04 trillion in the first 11 months, said Ministry of Commerce Spokesperson He Yadong at a weekly presser on Thursday. It is normal for this year’s growth rate to fluctuate, given the high base of the same period last year when foreign capital use reached a new high of CNY1.16 trillion in the Jan-Nov period, said He. Curious multinationals have come to China since the beginning of this year with 48,000 foreign-invested enterprises newly established across the country, a rise of 36.2% y/y, according to He. (Source: Securities Daily)