Private economy. Photo:VCG

An index gauging the development of China's small and medium-sized enterprises (SMEs) rebounded significantly in the third quarter as government pro-growth measures took effect.

The encouraging figure, which came ahead of the release of economic data for September and the third quarter, signaled that the economy is on a steady path of recovery, experts said.

The China Small and Medium Enterprise Development Index rose by 0.2 points in the third quarter to 89.2, after a decline of 0.3 points in the second quarter, the China Association of Small and Medium Enterprises (CASME) said on Tuesday

CASME head Xie Ji said that the index was near a two-year high due to the impact of government policies.

Among the sub-indexes, the macroeconomic sentiment index, a measure of enterprises' confidence, rose by 0.5 points, recording its largest increase.

The encouraging data indicated that China's economy returned to a steady recovery track in the third quarter, Zhou Maohua, an economist at China Everbright Bank, told the Global Times on Tuesday.

Zhou noted that the better-than-expected economic data since August and robust tourism and consumption during China's Golden Week holidays all indicated that consumer confidence in China is improving and market expectations are bouncing back.

"Based on the economic data and trends seen in July and August, it is expected that the GDP growth rate in the third quarter could reach 5 percent or even higher," Zhou said.

Tian Yun, a veteran economist based in Beijing, said that the most notable policy effects would be seen in the September economic data. Chinese government agencies and local governments have actively implemented policies following a key meeting held on July 24.

There should be continued upward momentum if pro-growth policies are consistently implemented, especially in addressing local debt and stabilizing the real estate market, Tian told the Global Times on Tuesday.

He expected the GDP growth rate to be about 5 percent in the third quarter, increasing to above 5 percent in the fourth quarter.

China posted better-than-expected economic data in August. Value-added industrial output increased by 4.5 percent year-on-year, higher than a reading of 3.7 percent in July, and retail sales grew by 4.6 percent, accelerating from 2.5 percent in July.

Vibrant domestic tourism during the Golden Week holidays probably added fuel to consumption in the third quarter.

Holiday tourism generated 753.43 billion yuan ($104.68 billion) in revenue, up 129.5 percent year-on-year and up 1.5 percent from 2019, data from the Ministry of Culture and Tourism showed on Friday.

All these offered further proof that the "China collapse" claim and the "slower-than-expected economic rebound" hyped by Western officials and media outlets are both absurd, experts said.

"There is no need to address the speculation made by foreign media outlets, as it is merely a verbal battle. Capital markets, having become more rational, will undoubtedly choose China due to the improving data," Tian said.

Contrary to the bleak picture painted by the Western media, foreign investment is pouring into the Chinese market, with a positive outlook on investment prospects in China.

US medical equipment enterprise Boston Scientific Corp announced on Monday that it will establish a manufacturing base in Shanghai, its first in China.

Germany-based Wacker Chemie in late September started construction of new production lines in Zhangjiagang, East China's Jiangsu Province to expand its manufacturing capacity in China with an investment of some 150 million euros ($159 million), the Global Times learned from the chemical group.

More than 100 top multinational companies have confirmed they will participate in the 134th China Import and Export Fair, also known as the Canton Fair, set to open on Sunday. The number of overseas buyers has significantly jumped, spanning 215 countries and regions, up 23.5 percent from the previous edition.