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☆ Exclusive: China govt advisers call for steady growth target in 2024, more stimulus
▼ + stars: | 2023-11-22 | by ( Kevin Yao | ) www.reuters.com time to read: +4 min

Five of the seven advisers who spoke with Reuters said they favoured a target of around 5%, matching this year's goal. The proposals will be made next month at the ruling Communist Party's annual Central Economic Work Conference that discusses policy plans and the outlook for the world's second-largest economy. "We need to adopt expansionary fiscal and monetary policy to stimulate aggregate demand," Yu Yongding, a government economist who advocates for a growth target of roughly 5%, told Reuters. "We are stepping up fiscal policy support," said another adviser, to make the "difficult" 2024 target "achievable." The stuttering post-COVID recovery has prompted many analysts to call for structural reforms that tilt the drivers of economic growth away from property and infrastructure investment and towards household consumption and market-allocation of resources.

Persons: Yu Yongding, Yu, Guan Tao, Xi Jinping, Kevin Yao, Marius Zaharia Organizations: Reuters, Communist, Economic Work Conference, BOC International, State Administration of Foreign Exchange, Thomson Locations: China, BEIJING, Beijing, outflows, Japan

☆ What do we know about China's new financial watchdog?
▼ + stars: | 2023-11-21 | by ( ) www.reuters.com time to read: +4 min

BEIJING, Nov 21 (Reuters) - China's Central Financial Commission (CFC), a new regulator with Premier Li Qiang as its head, held a meeting on Monday and urged stronger supervision of risks in the financial sector as Beijing accelerates efforts to become a "major financial power". The CFC was set up for the top-level design, development and supervision of the financial sector, strengthening "unified leadership on financial work", according to a restructuring plan published by state media in March this year. The CFC has recruited many officials from the central bank and the finance ministry, financial news outlet Caixin reported earlier this month. The appointments indicate that both officials, who are close confidants of President Xi Jinping, will play important roles in shaping China's financial policies. He was also appointed as party chief of a separate Central Financial Work Commission (CFWC), which has been set up to strengthen the ideological and political role of the party in China's overall financial system.

Persons: Li Qiang, Premier Li, Li, Lifeng, Xi Jinping, Wang Jiang, Xia Xiande, Xi, Ziyi Tang, Kevin Yao, Ryan Woo, Sumeet Chatterjee Organizations: Financial Commission, Communist Party, CFC, WHO, THE, Financial Work, China Everbright Group, Analysts, Reuters, National Financial Regulatory Administration, State Council, People's Bank of China, prudential, Thomson Locations: BEIJING, Beijing, China, Lincoln

☆ China vows to support property sector, tackle local debt
▼ + stars: | 2023-11-18 | by ( ) www.reuters.com time to read: +1 min

BEIJING, Nov 17 (Reuters) - China's central bank and financial regulators pledged on Friday to ensure financing support for the property sector and to work together to resolve local government debt risks. Chinese leaders are trying to revive the economy and fend off potential financial risks from a property slump and 92 trillion yuan ($12.77 trillion) in local government debt. Recent efforts to stabilise financing for the real estate sector via bank credit, bonds, and equity are gaining traction, the China Securities Regulatory Commission said. China will promote stable credit expansion to support its economic growth, and financial institutions should work with local governments to resolve debt risks, by extending, swapping or rolling over debt, the regulator added. ($1 = 7.2050 Chinese yuan renminbi)Reporting by Kevin Yao and Ella Cao; editing by Christina Fincher, William MacleanOur Standards: The Thomson Reuters Trust Principles.

Persons: Kevin Yao, Ella Cao, Christina Fincher, William Maclean Organizations: China Securities Regulatory Commission, Thomson Locations: BEIJING, China

[1/2] FILE PHOTO: Robotic arms assemble cars in the production line for Leapmotor's electric vehicles at a factory in Jinhua, Zhejiang province, China, April 26, 2023. Retail sales, a gauge of consumption, rose 7.6% in October, quickening from a 5.5% gain in September and hitting the fastest growth since May. Analysts had expected retail sales to grow 7.0% due to the low base effect in 2022 when COVID curbs disrupted consumers and businesses. The PBOC has cut banks' reserve requirement ratio (RRR) twice this year to free up liquidity to aid the economic recovery. Fixed asset investment expanded 2.9% in the first 10 months from the same period a year earlier, versus expectations for a 3.1% rise.

Persons: Xing Zhaopeng, Albee Zhang, Liangping Gao, Shri Navaratnam Organizations: REUTERS, Rights, National Bureau of Statistics, Analysts, ANZ, People's Bank of China, Bloomberg, Thomson Locations: Jinhua, Zhejiang province, China, Rights BEIJING, quickening

☆ Exclusive: China orders local governments to cut exposure to public-private projects as debt risks rise, sources say
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +5 min

The guidelines were mentioned in a cabinet document that was circulated among local governments, policy banks and state lenders last month, said the two sources with knowledge of the matter. The move comes after numerous local governments' PPP expenditure hit the upper limit of the threshold in recent years. But the PPP boom has alarmed authorities who say some local governments have used public-private partnerships, government investment funds and government procurement services as "disguised channels" for raising debt. The State Council and the NAO did not immediately respond to Reuters requests for comments. A portion of the $12.6 trillion local government debt is linked to the PPP projects, as municipalities used these infrastructure-building initiatives as a conduit to raise capital.

Persons: Thomas Peter, NAO, Kevin Yao, Ziyi Tang, Sumeet Chatterjee Organizations: Central Business District, National People's Congress, REUTERS, Rights, International Monetary Fund, National Audit, State, State Council, Bank of, Reuters, National Development, Reform Commission, Thomson Locations: Beijing, China, Rights BEIJING, Bank of China

☆ China's large language model development is like 'gold rush': Analyst
▼ + stars: | 2023-11-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDespite the AI regulation, China's large language model development is still like a 'gold rush'Alex Yao of JPMorgan expects consolidation in China's large language model development in the next 2-3 years. A stricter AI regulatory landscape is also likely given the social implications of the new technology.

Persons: Alex Yao Organizations: JPMorgan

Lending data from China's central bank offers a glimpse of government priorities: as of the end of September, outstanding loans to the troubled property sector fell 0.2% year-on-year but lending to the manufacturing sector jumped 38.2%. This time, the government's focus is narrower, targeting high-tech and "advanced manufacturing", a goal laid out in 2021 in the 14th five-year plan. It grew 11.3% in the first nine months of 2023 year-on-year, compared with 6.3% for overall manufacturing investment, according to data from China's National Bureau of Statistics. For example, Guangdong province has increased lending to both high-tech and advanced manufacturing by about 45%, state media reported. During the first half of 2023, outstanding loans to the high-tech manufacturing sector in the eastern province of Shandong jumped 67%.

Persons: Jens Eskelund, Eskelund, Xi Jinping, Joe Biden, Frederic Neumann, Neumann, Tao Wang, Wang, Fu, Lu Zhengwei, Siyi Liu, Kripa Jayaram, Robert Birsel Organizations: Rights, European Chamber of Commerce, Asia Pacific Economic Cooperation, U.S, Reuters Graphics, overcapacity, HSBC, UBS, China's National Bureau of Statistics, Rystad Energy, EV, China Passenger Car Association, Bank, Industrial Bank, Thomson Locations: Suqian, Jiangsu province, China, CHINA, Rights BEIJING, Europe, Beijing, San Francisco, Xi, Asia, Guangdong province, Shandong, Dongguan, Shanghai

☆ China can raise 2024 budget deficit ratio to spur growth - c.bank adviser
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +1 min

A man wearing a mask walks past the headquarters of the People's Bank of China, the central bank, in Beijing, China, February 3, 2020. A higher budget deficit next year will help drive the country's economic recovery, he said. Last month, China sharply lifted its 2023 budget deficit to around 3.8% of gross domestic product from 3% because of the planned issuance of 1 trillion yuan ($137.14 billion) in sovereign bonds. China is able to achieve economic growth of slightly above 5% this year, Wang said. Weak external demand and inadequate domestic demand increase overcapacity pressures in China, Wang said.

Persons: Jason Lee, Wang Yiming, Wang, Ellen Zhang, Kevin Yao, Christopher Cushing Organizations: People's Bank of China, REUTERS, Rights, Monetary, Thomson Locations: Beijing, China, Rights BEIJING

☆ Reaction to Reuters report on potential Ping An rescue of Country Garden
▼ + stars: | 2023-11-08 | by ( ) www.reuters.com time to read: +4 min

EUGENE LAW, DIRECTOR OF CHINA GALAXY INTERNATIONAL:"If the central government steps in to help Country Garden, it's for easing the debt crisis and preventing a spillover to financial institutions. But it will not help the China property market, which depends on factors, including employment and consumer confidence. Homebuyers would not rush to buy property just because Country Garden gets out of trouble. For the broader property market, the key is still home sales." Country Garden may have reached a tipping point where it will need more liquidity to fulfill such a policy goal.

Persons: Tyrone Siu, Ping, EUGENE LAW, Homebuyers, MICHAEL WONG, XU TIANCHEN, YAO, homebuyers, GARY NG, Clare Jim, Anne Marie Roantree, Edwina Gibbs, Kim Coghill Organizations: Ping An Insurance, REUTERS, Ping An Insurance Group, HK, Reuters, LU, OF CHINA GALAXY, Garden, Central Financial Work Conference, Thomson Locations: Shenzhen, China, HONG KONG

SINGAPORE (AP) — Britain’s Prince William cheered on 15 finalists of his third Earthshot Prize in Singapore Tuesday ahead of the awards ceremony where five of them will win 1 million pounds ($1.2 million) each to scale up groundbreaking innovations to fight climate change. William spoke to the finalists — all whom are attending the ceremony for the first time for networking opportunities — at Gardens by the Bay, an artistic horticulture attraction. The winners are grouped into five categories: nature protection, clean air, ocean revival, waste elimination and climate change. The finalists included a U.S. company that found a way to recycle polycotton fabrics, which makes up half of all textile waste. Apart from the prize money, all 15 finalists will receive a year of technical support and resources to help them accelerate their ideas.

Persons: — Britain’s Prince William, William, —, Rania al Abdullah, Jack Ma, Stella McCartney, David Attenborough, Ngozi Okonjo, Yao Ming, Kate, couldn't, George, Hannah Waddingham, Sterling K, Brown, Bebe Rexha, Oscar, Cate Blanchett, Donnie Yen, Lana Condor, Mbatha, Robert Irwin Organizations: SINGAPORE, World Trade Organization, NBA, William’s Royal Foundation, MediaCorp, Sterling Locations: Singapore, Gardens, U.S, Indian, Sierra Leone’s, Freetown, Poland, Europe, U.K, Asia, London, Boston, Republic

☆ China's He Lifeng named to key post in Central Financial Commission
▼ + stars: | 2023-11-06 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Florence Lo/File Photo Acquire Licensing RightsBEIJING, Nov 6 (Reuters) - A Chinese vice premier, He Lifeng, has been appointed head of the office of the Central Financial Commission (CFC), which is responsible for running day-to-day affairs of a new regulator tasked with overseeing a vast financial sector. He was also appointed as party chief of a separate Central Financial Work Commission (CFWC), which has been set up to strengthen the ideological and political role of the party in China's overall financial system. The appointments, announced by the central bank's Financial News publication, underscore how the ruling Communist Party has taken direct control of supervising the financial sector. He has also been appointed director of a key ruling Communist Party economic body, the Central Finance and Economic Affairs Commission, replacing Liu He. In 2014, He was named vice chairman of the National Development and Reform Commission, the state planning agency, before taking full control in 2017.

Persons: Lifeng, Florence, Xi Jinping, Liu He, Xi, Ziyi Tang, Kevin Yao, Ryan Woo, Edwina Gibbs, Robert Birsel Organizations: REUTERS, Rights, Central Financial Commission, Financial Work, Financial, Communist Party, Central Finance, Economic Affairs Commission, Xiamen University, National Development, Reform Commission, Thomson Locations: China, EU, Diaoyutai, Beijing, Rights BEIJING, Quanzhou, Fujian province, Xiamen, Tianjin

Chinese Vice Premier He Lifeng attends a joint press conference following the 10th China-EU High-Level Economic and Trade Dialogue at the Diaoyutai State Guesthouse in Beijing, China September 25, 2023. He, 68, replaced internationally respected Liu He as one of China's four vice premiers during its annual parliament session in March. The full scope of his portfolio had been largely unclear until Sunday when state media referred to him as the director of a powerful Communist Party economic body. "He Lifeng mainly implements policies from the top leader," said a policy adviser who spoke on condition of anonymity, referring to Xi. "Now under the leadership of the Party ... there will be closer cooperation among the top economic planner, central bank and the finance ministry."

Persons: Lifeng, Florence, Xi Jinping's, Liu, Xi, Liu He, Li Keqiang, Peng Liyuan, Kevin Yao, Laurie Chen, Joe Cash, Ellen Zhang, Marius Zaharia Organizations: REUTERS, Rights, Communist Party, Central Financial Commission, Harvard, Investors, State Council, Party, Xiamen University, National Development, Reform Commission, Thomson Locations: China, EU, Diaoyutai, Beijing, Rights BEIJING, China's, Washington, Europe, Quanzhou, Fujian, Xiamen, Tianjin, Lincoln

☆ Educated Gen Zers in China are choosing not to work. It could be a problem for the US economy.
▼ + stars: | 2023-10-29 | by ( Ayelet Sheffey | Huileng Tan | ) www.businessinsider.com time to read: +8 min

Youth unemployment in China hit a record high of 21% in May. It's a problem not only for China's economy — it could hurt the US, as well. China's economy is on shaky ground as it emerges from very strict lockdown pandemic measures. That's compared to the US youth unemployment rate of 7.4% in May. "The stakes are high for correcting these imbalances, given how important the youth population is to China's economy," the note said.

Persons: There's, —, China —, it's, China's, China — Benn Steil, Steil, Victoria University of Wellington Christian Yao, Alfred Wu, National University of Singapore's Lee, Wu, Goldman Sachs, they're, it'll Organizations: Service, Trade, National Bureau of Statistics, Weibo, China, Council, Foreign Relations, Victoria University of Wellington, China Macroeconomy, New York Times, National University of Singapore's, National University of Singapore's Lee Kuan Yew, of Public, NBC News Locations: China, decouple, Japan, United States

☆ Victor Wembanyama struggles with foul trouble in NBA debut as San Antonio Spurs lose to Dallas Mavericks
▼ + stars: | 2023-10-26 | by ( Ben Morse | ) edition.cnn.com time to read: +5 min

CNN —After months of anticipation, Victor Wembanyama finally made his official NBA debut on Wednesday night in the San Antonio Spurs’ loss to the Dallas Mavericks. The top pick in this year’s draft, Wembanyama only played 23 minutes after struggling with foul trouble throughout. “One of the toughest things for a player is to get into foul trouble,” Popovich said, per ESPN. I thought he had a wonderful outing considering that.”ReturningAs Wembanyama made his full NBA debut, another generational talent also made headlines on Wednesday. “No matter how much I train, workout, play pickup, it’s nothing like a real NBA game.”

Persons: Victor Wembanyama, Frenchman, Wembanyama, ” Wembanyama, ”, Luka Dončić, Dončić, Jeremy Sochan, Andrew D, Bernstein, Kyrie Irving, Tim Hardaway Jr, Grant Williams, Dereck Lively, Devin Vassell, LeBron James, Michael Jordan, Yao Ming, Yao, he’s, “, Irving, Gregg Popovich, ” Popovich, didn’t, Zion Williamson, Williamson, ” Williamson Organizations: CNN, NBA, San Antonio Spurs, Dallas Mavericks, Spurs, ESPN, Mavericks, Texas, Houston Rockets, Reuters, “, New Orleans Pelicans, Memphis Grizzlies, Grizzlies Locations: Slovenian, Antonio, Wembanyama

☆ China's new bonds to help economic recovery, official says, as budget deficit rises
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsBEIJING, Oct 25 (Reuters) - China's new sovereign bonds will help bolster the economic recovery, China's vice finance minister Zhu Zhongming said on Wednesday, as the government's stepped-up fiscal stimulus sharply raises its budget deficit. The government's debt level is still within a reasonable range, the minister said, without giving details. Analysts at UBS expect the government to raise its budget deficit and special local bond quotas for 2024, alongside further cuts in interest rates and bank reserve requirement ratios. China's parliament has also approved a bill to allow local governments to front load part of 2024 local bond quotas. Local governments had been told to complete the issuance of the 2023 quota of 3.8 trillion yuan in special local bonds by September to fund infrastructure projects.

Persons: Dado Ruvic, Zhu Zhongming, Zhu, Ting Lu, Ellen Zhang, Kevin Yao, Christopher Cushing Organizations: REUTERS, Rights, Nomura, UBS, Thomson Locations: Rights BEIJING, Beijing, China

☆ NBA 'first class' in China despite past turbulence, says Yao
▼ + stars: | 2023-10-25 | by ( Amy Tennery | ) www.reuters.com time to read: +2 min

President of Chinese Basketball Association and Ice and Snow Sports Promotion Ambassador Yao Ming attends a media event ahead of the Beijing 2022 Winter Olympics in Beijing, China January 17, 2022. REUTERS/Yew Lun Tian/File Photo Acquire Licensing RightsNEW YORK, Oct 25 (Reuters) - The National Basketball Association (NBA) and China may have encountered turbulence in their relations over the years but retired great Yao Ming told Reuters the league is still "first class" in his home country. Yao propelled the league's popularity in his home country but relations between China and the NBA have not always been smooth. "I have to say, the NBA is in the first class... (because) you know the players being exposed in China for so long," Yao said, when asked about the past issues between China and the NBA. "The players, the teams (are) all still very well welcome in China and (we had) a couple of players with (in) China just this past summer."

Persons: Yao Ming, Yao, Daryl Morey, Dwight Howard, Kyle Anderson, Jimmy Butler, Adam Silver, Silver, Peng Shuai, Peng, Amy Tennery, Echo Wang, Christian Radnedge Organizations: Chinese Basketball Association and, Snow Sports, REUTERS, National Basketball Association, Reuters, Chinese Basketball Association, Houston Rockets, NBA, Minnesota Timberwolves, FIBA, Miami, Women's Tennis Association, Thomson Locations: Beijing, China, United States, Hong Kong, Taiwan, New York

☆ Wembanyama is a talent beyond compare, says Yao
▼ + stars: | 2023-10-25 | by ( Amy Tennery | ) www.reuters.com time to read: +1 min

NEW YORK, Oct 25 (Reuters) - France's Victor Wembanyama possesses a talent that defies comparison, retired great Yao Ming told Reuters, as the seven-foot four-inch (2.24-metre) rookie makes his highly anticipated National Basketball Association (NBA) regular-season debut on Wednesday. "I never see a big guy like, you know, (who) can do such a thing like he does," said Yao, an eight-times NBA All-Star who stands two inches (five cms) taller than Wembanyama. Yao spent his entire NBA career with the Houston Rockets and remains an iconic figure of Chinese sport after fuelling the popularity of the NBA in his home country. The Hall of Famer was reluctant to offer advice to Frenchman Wembanyama, who enters the NBA at a time of unprecedented international participation in the league. "He has his own expedition to go (on)," said Yao, who was travelling to New York as part of a some 30-person Chinese delegation this week.

Persons: Victor Wembanyama, Yao Ming, LeBron James, Yao, Frenchman Wembanyama, I'm, Amy Tennery, Echo Wang, Clare Fallon Organizations: Reuters, Basketball Association, San Antonio Spurs, Texan, Dallas Mavericks, NBA, Houston Rockets, Famer, Thomson Locations: New York

☆ China to issue $137 bln sovereign debt to support economy
▼ + stars: | 2023-10-24 | by ( ) www.reuters.com time to read: +2 min

Reuters reported on Monday that China's parliament was set to approve just over 1 trillion yuan in additional sovereign debt issuance, citing sources. "The additional fiscal support approved today is the intervention we had been expecting and that was needed to prevent an abrupt fiscal tightening in China in the closing weeks of the year," said Mark Williams, chief Asia economist at Capital Economics. China has previously let local governments issue bonds ahead of the annual session of parliament, which approves government budget plans and is usually held in March. Local governments had been told to complete the issuance of the 2023 quota of 3.8 trillion yuan in special local bonds by September to fund infrastructure projects. The government has not disclosed the size of local governments' 2024 frontloaded bond quotas.

Persons: Mark Williams, Williams, Kevin Yao, Ellen Zhang, Ella Cao, Jason Neely, Susan Fenton Organizations: Xinhua, Reuters, National People's Congress, Capital Economics, Thomson Locations: BEIJING, China, Asia, Beijing

☆ China to choose fiscal muscle over big reforms to revive economy
▼ + stars: | 2023-10-24 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

The foundation of economic recovery is not solid," said an adviser to the cabinet who spoke on condition of anonymity. The debate about economic policy in China has heated up in recent months with some government advisers advocating reforms to help unleash new growth engines beyond property and infrastructure investment. For those looking for structural reforms, the focus is on policies that spur urbanisation and household spending power, reduce the reliance on investment and level the playing field between state-owned enterprises and private firms. "Fiscal policy should still play the leading role next year," said Xu Hongcai, deputy director of the economic policy commission at the state-backed China Association of Policy Science. "We should push reforms as many problems are structural, but reforms are difficult to implement and require political will," said one policy insider.

Persons: Xu Hongcai, Xu, Guan Tao, Kevin Yao, Sam Holmes Organizations: Reuters, China Association of Policy, BOC International, State Administration of Foreign Exchange, Communist, Thomson Locations: China, BEIJING, Beijing

☆ Analysis: China to choose fiscal muscle over big reforms to revive economy
▼ + stars: | 2023-10-24 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

The letter, issued a week before the international AI Safety Summit in London, lists measures that governments and companies should take to address AI risks. Currently there are no broad-based regulations focusing on AI safety, and the first set of legislations by the European Union is yet to become law as lawmakers are yet to agree on several issues. "It (investments in AI safety) needs to happen fast, because AI is progressing much faster than the precautions taken," he said. Since the launch of OpenAI's generative AI models, top academics and prominent CEOs such as Elon Musk have warned about the risks on AI, including calling for a six-month pause in developing powerful AI systems. "There are more regulations on sandwich shops than there are on AI companies."

Persons: Dado Ruvic, Yoshua Bengio, Geoffrey Hinton, Andrew Yao, Daniel Kahneman, Dawn Song, Yuval Noah Harari, Elon Musk, Stuart Russell, Supantha Mukherjee, Miral Organizations: REUTERS, Rights, Safety, European, Elon, Thomson Locations: Rights STOCKHOLM, London, European Union, British, Stockholm

☆ China names Lan Foan as new finance minister amid stimulus push
▼ + stars: | 2023-10-24 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Oct 24 (Reuters) - China has appointed Lan Foan, a technocrat with little central government experience, as the new finance minister, state media said on Tuesday, as the government ramps up fiscal stimulus in a bid to revive the economy. Lan, 61, who was named the Communist Party chief at the finance ministry last month, has succeeded Liu Kun who had been finance minister since 2018. Previously, Lan was the party chief of the northern Chinese Shanxi province. He transferred to Shanxi in 2021, as the province's vice party chief, before becoming the party chief in December 2022. Liu, China's finance minister since 2018, has surpassed the official retirement age of 65 for minister-level officials.

Persons: Lan Foan, Liu Kun, Lan, Liu, Kevin Yao, Alison Williams Organizations: Communist Party, Hubei University of Finance, Economics, Thomson Locations: BEIJING, China, Shanxi, Beijing, Guangdong

☆ Analysis: Middle East throws central banks yet more unknowns
▼ + stars: | 2023-10-20 | by ( Mark John | ) www.reuters.com time to read: +5 min

Now, to complicate matters for a professional caste which prides itself on being data-driven, the Middle East is throwing a new set of real but unquantifiable risks into their equations. Unless the picture changes dramatically in coming days, the European Central Bank, U.S. Federal Reserve, Bank of England and Bank of Japan are already expected to keep their policy rates on hold in meetings over the next two weeks. ECB rate-setter Yannis Stournaras, the governor of the Greek central bank, argued that Europe had broadly managed to absorb the effects of rising energy costs triggered by the Ukraine war and hoped it could do the same if further shocks emerged. For now, the conflict remains largely confined to Israel and Gaza, something S&P Global Market Intelligence said in a study this week was already "muddying the waters" for central banks. As the Fed's Powell put it: "Our institutional role at the Federal Reserve is to monitor these developments for their economic implications, which remain highly uncertain".

Persons: Jerome Powell, David Westin, Brendan McDermid, Powell, Huw Pill, Yannis Stournaras, Tetsuya Hiroshima, Fed's Powell, Dan Burns, Balazs Koranyi, Francesco Canepa, Maria Martinez, Leika, Kevin Yao, David Milliken, Tomasz Janowski Organizations: Federal, Anchor, Bloomberg, Street, Economic, of New, REUTERS, Bank of England, International Monetary Fund, European Central Bank, U.S, Federal Reserve, Bank of Japan, Fed, ECB, Reuters Graphics, Reuters, Tokai, Toyota Motor Corp, P Global Market Intelligence, Thomson Locations: of New York, New York City, U.S, Israel, Ukraine, Iran, Hormuz, Europe, United States, Japan, Gaza, Washington, Frankfurt, Berlin, Tokyo, Beijing, London

ON TRACK FOR GOVT GDP TARGETThe recovery momentum suggests the government's full year 2023 growth target of around 5.0% is likely to be achieved. The key issue is what growth target the government will set and how much fiscal easing will take place." The statistics bureau said China would be able to hit the 2023 growth target if the fourth quarter growth tops 4.4%. Moody's Analytics has also raised its 2023 growth projection to 5% from 4.9%. The faltering property sector has hit some of the biggest developers in the country.

Persons: Matt Simpson, Zhiwei Zhang, Tingshu Wang, Frederic Neumann, Louise Loo, Ellen Zhang, Joe Cash, Kevin Yao, Shri Navaratnam Organizations: Gross, National Bureau, Statistics, Reuters, Index, New, REUTERS, Nomura, JPMorgan, Analysts, Country Garden Holdings, HK, Global Research, HSBC, Oxford Economics, Monetary Fund, Thomson Locations: BEIJING, Brisbane, U.S, Beijing, China, New Zealand, Asia

☆ China's Q3 GDP growth, Sept activity show economic recovery gaining momentum
▼ + stars: | 2023-10-18 | by ( ) www.reuters.com time to read: +3 min

On a quarter-by-quarter basis, GDP grew 1.3% in the third quarter, accelerating from a revised 0.5% in the second quarter and above the forecast for growth of 1.0%. "It seems that all of that stimulus is finally beginning to take effect, with a broad beat from growth, retail sales, industrial production and unemployment," said Matt Simpson, senior market analyst at City Index in Brisbane. The economy faltered in the second quarter after a brief post-COVID recovery, dragged by a property downturn and huge debt due to a decades-long infrastructure binge. The recovery momentum suggests the government's full year 2023 growth target of around 5.0% is likely to be achieved. Growth of retail sales, a gauge of consumption, also beat expectations, rising 5.5% last month, and accelerating from a 4.6% increase in August.

Persons: Tingshu Wang, Matt Simpson, Zhiwei Zhang, Ellen Zhang, Joe Cash, Kevin Yao, Shri Navaratnam Organizations: REUTERS, Gross, National Bureau, Statistics, Index, Analysts, Thomson Locations: Beijing, China, BEIJING, Brisbane

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