MNI China Press Digest Feb 9: GDP, Car Sales, Capital Markets

Highlights from Chinese press reports on Thursday:

• Leading economists predict China’s GDP growth target for 2023 will be set at 5.28%, as the weakening impact of the pandemic and the promotion of growth policies help stabilise the economy and expand domestic demand, according to a survey by Yicai.com. Citing experts, the paper said the jobs market will remain under pressure and maintaining an unemployment rate of 5.5% requires economic growth of at least 5%. As economic data improves in Q1, experts do not expect a change to the one-year LPR in February, though the five-year LPR could be lowered to support the real estate sector.
• Demand expectations in the automotive market remain optimistic despite a fall in car sales during January, according to the China Automobile Dealers Association (CADA). A sentiment survey released by the CADA showed dealers expect sales volumes to increase in February as the economic recovery gathers pace and regional policies to promote consumption through continuing car purchase subsidies take effect. Tesla's decision to cut prices will also help stimulate demand. January’s fall in sales was attributed to disruptions caused by the Chinese New Year holiday, the association said.
• China’s capital markets can support high quality development by providing financing and improving governance standards for SME’s, according to experts interviewed by the China Economic Network. Following the recent reform of the stock issuance registration system, capital markets can support SME's through facilitating mergers and acquisitions, as well as encouraging institutional investors to participate in decision making, which will help to boost high quality development. Enterprises can make use of real estate investment trusts to raise financing and expand development, and investment banks can innovate ways to increase credit for bond financing, the news outlet said.