MNI China Press Digest Jan 18: GDP, Liu He, Real Estate

Highlights from Chinese press reports on Wednesday:

• China’s 31 provinces have announced an average GDP growth target of 5.9% in 2023, 0.4 pp lower than the average target of 6.3% in 2022, according to Yicai.com. The news outlet said expanding domestic demand and industrial transformation were seen as priorities, when it analysed the outcome of recent local two-session meetings. The average growth of local fixed asset investment in 2023 is 8.4%, with retail sales of consumer goods averaging 7.9%. The paper noted local targets are usually higher than the national rate, with the overall target typically closer to the Shanghai mark, which this year is set at 5.5%.
• China’s growth rate in 2023 is likely to return to normal, as firms increase investment and consumption rebounds, Vice-Premier Liu He has told an audience at Davos. Beijing welcomes foreign investment and seeks to expand foreign trade, as these are strong pillars of China’s economic progress. On real estate, the rapid pace of urbanisation provides strong demand fundamentals for future stability, and the government will continue to work on de-risking the sector. Liu said international cooperation should focus on ensuring energy and food security.
• Authorities will take measures that improve housing demand and boost market confidence in 2023, but avoid speculative practices, the Ministry of Housing and Urban-Rural Development said at its recent Work Conference. The ministry said it plans to continue the transformation of shanty towns and support for young people, and will start construction of 3.6 million affordable rental housing units. It will work towards improving the balance sheets of high quality developers, and ensure policies can be adjusted to suit conditions at the local level.