A view of the PBC building in Beijing on August 22, 2022 Photo: VCG

The potential growth rate of the Chinese economy will remain within a reasonable range governor of People's Bank of China (PBC), Yi Gang said during the Global Financial Leaders Investment Summit held in Hong Kong Special Administrative Region (HKSAR) on Wednesday.

Yi said that China has a large domestic market, growth potential in urbanization rate, growing demand of middle-income group, world’s largest talents reserve of engineers and technicians, a comprehensive modern industrial system and a nationwide network of high-quality infrastructure.

The vigorous development of scientific and technological innovation and the deepening of supply-side structural reform in China will continue to strengthen the drivers of economic growth, Yi said.

Despite challenges and downward pressure, the Chinese economy has continued to recover on the whole.

In the third quarter, China's GDP grew 3.9 percent year on year, up 3.5 percentage points from the second quarter, fully demonstrating the resilience of the Chinese economy. 

The surveyed unemployment rate remained steady at 5.5 percent in September while inflation remained low, thanks to a bumper grain harvest and stable coal and power supplies, Yi said.

In terms of recent yuan’s turbulence against the US dollar, Yi stressed that the exchange rate for the yuan will remain basically stable at an appropriate and balanced level, and its value and purchasing power will remain stable.

Thanks to the long-term sound fundamentals of the Chinese economy and a normalized monetary policy over recent years, the yuan has remained relatively stable against currency basket. Although the yuan has depreciated against the US dollar, it appreciated against other major currencies, Yi said.

In addressing the property market, Yi noted that there has been marginal improvement in real estate sales and loan issuance. 

“We believe that the real estate market can maintain a steady and healthy development,” Yi said.

The Global Financial Leaders' Investment Summit is a budget initiative announced by the Financial Secretary in his 2022-23 Budget. 

It is aimed at further tap into Hong Kong's strength in attracting investment and influence as an international financial center, featuring speeches by HKSAR government leaders, Chinese financial regulators, as well as themed panels on technology innovation, finance and investment outlook.

Hong Kong is and will continue to be an important international financial center and an important bridge connecting the mainland and international markets, Yi said.

Hong Kong and the Chinese mainland have great potential for cooperation in areas such as financial market connectivity, investment and financing on Belt and Road Initiative, Fintech and green finance, Yi said. 

“We will give full support to Hong Kong's development, support Hong Kong in building and maintaining a vibrant business environment, and further strengthen its development as an international financial center,” Yi added.

Global Times