A worker rushes to fill orders at a factory in an industrial park in Nanchong, Southwest China's Sichuan Province on January 16, 2024. Photo: VCG

China's recent incremental policy measures are driving recovery in manufacturing and the real estate market, according to the latest data released on Friday, underscoring the effectiveness of the country's incremental policies aimed at bolstering economic growth. 

Meanwhile, as the country enters an active expo season, it is also extending a warm welcome to international companies, showcasing its commitment to high-level opening-up that is expected to stimulate trade and investment opportunities for the global community. 

Experts believe that these supportive policies, combined with the exhibition season, will create new avenues for economic growth and help sustain growth momentum.

China's manufacturing sector further showed improving signs in October, with the Caixin China General Manufacturing Purchasing Managers' Index (PMI) rising to 50.3, up 1 percentage point from September, according to the private survey released on Friday.     

The 50-point threshold separates expansion from contraction. The survey, which tracks smaller manufacturing firms, indicated that manufacturing activity in China has returned to expansion territory, with demand stabilizing and market confidence improving.

The Caixin survey followed the official PMI data from the National Bureau of Statistics on Thursday, which showed that the manufacturing PMI increased by 0.3 percentage points to 50.1, marking a return to expansion territory after five consecutive months of contraction.

The expansion of China's manufacturing PMI to above the 50-point line indicates that the recent package of policies aimed at stabilizing economic growth is gradually showing results, Wu Chaoming, a deputy head of the Chasing Research Institute, told the Global Times on Friday.

The effective implementation of a slew of pro-growth policies, coupled with a moderate recovery in domestic demand, is expected to promote a balanced recovery across various types of enterprises, Wu said.

Under the combined effect of policy measures, the national real estate market is also showing positive signs of stabilization in October, with improvements on both month-on-month and year-on-year basis.

On a yearly basis, the total transaction volume for both newly built and second-hand homes increased by 3.9 percent year-on-year, ending an eight-month decline since February, according to data from the Ministry of Housing and Urban-Rural Development on Friday.

On a monthly basis, the total transaction volume for both newly built commercial housing and second-hand housing grew by 5.8 percent in October compared with data in September.

Dubbed "Golden September and Silver October" by the property market, the two months are considered a peak sales season in the second half of the year. Typically, September is the stronger of the two months as property developers push to hit third-quarter targets.

Sales of China's commercial housing in October have outperformed those of September. This marks a rare occurrence and is the first time this has happened since 2007, an official from the ministry said.

The data indicates a positive trend in the real estate market, suggesting that it is stabilizing and showing signs of recovery, Yan Yuejin, deputy director of the E-house China R&D Institute in Shanghai, told the Global Times on Friday.

"The ongoing improvement in market transactions signifies that the effects of policy measures are being released. The improved performance in October also sends an encouraging signal for the months ahead," Yan said.

Additionally, more policy support is on the way as the Ministry of Commerce (MOFCOM) on Friday said it will collaborate with relevant departments to roll out a series of new policies aimed at stimulating consumption.

This includes measures to promote the debut economy and targeted measures to promote health related consumption, the ministry said.

The Ministry of Finance also said that China will introduce a package of targeted incremental fiscal policy measures in the near future to boost the economy, Minister of Finance Lan Fo'an told a press conference on October 12.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Friday that the overall macroeconomic situation in the fourth quarter is expected to show a steady and progressive trend.

"A set of measures will continue to positively impact the economy, providing strong support for its growth," Wang said.

Expo season to sustain economic growth 

The mix of policies coincides with the ongoing expo season in China, including the third phase of the 136th China Import and Export Fair, also known as Canton Fair, in Guangzhou, South China's Guangdong Province, which kicks off on Thursday, as well as the 7th China International Import Expo (CIIE), set to begin on Tuesday.

"The exhibition economy, exemplified by events such as the Canton Fair and CIIE, is poised to invigorate the economy and benefit global businesses. These platforms not only facilitate the transformation and upgrading of the domestic economy but also create significant business opportunities for enterprises around the world," Wang said.

The upcoming events will play a critical role in providing a vital platform for both domestic and international companies to showcase their products and engage in transactions, foster international trade cooperation and create essential channels for promoting investment cooperation, Wang added.

Preparations are nearly complete for the 7th CIIE, which has attracted participants from 152 countries, regions and international organizations, and achieved a new record with 297 Fortune Global 500 companies and industry leaders set to attend, MOFCOM said on Thursday.

Record attendance by Fortune Global 500 companies and buyer groups to the 7th CIIE showcases the appeal of China's mega-sized market, speaks volumes about the strong confidence of the international community in China's economic outlook, and demonstrates the common aspiration of all sides for win-win result through open cooperation, Foreign Ministry spokesperson Lin Jian told a routine press conference on Friday.

Frank Meng, Chairman of Qualcomm China, said in an interview with the Xinhua News Agency that the CIIE is an important platform for showcasing new technologies, new collaborations, and new experiences. 

He emphasized that it serves as a great opportunity for Qualcomm to strengthen communication with various industries and regions in China, adding that the company aims to showcase the innovative cooperation results with its Chinese partners and further expand its network of industrial cooperation in China.

Since its first edition in 2018, the CIIE has become an important showcase, spotlighting China's new development paradigm, a platform for high-standard opening-up, and an opportunity for the whole world.