China’s economy maintains momentum for steady growth

By Li Haoran

The annual and quarterly reports of listed finance companies are like a mirror that reflects industrial development, the changes of financial services and the trend of macro economy.

Many commercial banks and insurance companies recently released their 2018 annual reports and Q1 reports of 2019. Revenue of 32 listed companies in China's A-share market rose by 15.9 percent in the first quarter from a year earlier, 7.5 percentages higher than the annual growth of 2018.

According to statistics, more and more bank loans have been flown to the private sector and small- and medium-sized enterprises (SMEs). In addition, 5 insurance companies saw a big rise in their premium income.

Such remarkable achievements made in the finance and insurance sector indicated from the side that Chinese economy has secured a good start this year with strong resilience.

Chinese economy has achieved progress and ensured stability in the short term. According to data recently released by the National Bureau of Statistics (NBS), the national services production index ballooned 7.4 percent year-on-year in April, the second highest since last September.

The output of the high-tech manufacturing sector surged 11.2% in the same period, 5.8 percentages higher than the industries above designated size. Surveyed urban unemployment rate went down by 0.2 percentage points from the previous month.

These latest economic data proved that with economic growth, stable employment, and energetic market, China’s economic operation is still in a reasonable range, consolidating its trend for stability and growth.

In the mid-term, Chinese economy is well poised to keep the momentum of stable growth. China’s GDP growth has been kept between 6.4 percent and 6.8 percent for 14 quarters straight, and its employment is also enlarging. The growth of resident income slightly outruns that of economic growth, and consumption keeps playing as a major engine driving the economic growth.

Stability mounted to be the largest highlight of Chinese economy when conditions both at home and abroad were complex and challenging, and China has delivered better-than-expected economic performance with major indicators maintained within reasonable range.

The good momentum of steady growth is reflected by not only speed, but also the structural optimization and shifts of development models. The deepening of the supply-side structural reform in recent years has guided the country’s economy into a virtuous circle of price recovery, cost reduction, profit increase and confidence boost.

As a result, Chinese economy is seeing enhanced stability and more energetic momentum for growth.

It also enjoys cemented fundamentals that will sustain long-term growth. On the supply side, China’s comparative advantages in production factors, such as human resource, land, capital and emerging industries, stay unchanged, with continuously improving quality of the supply system.

On the demand side, China has a market of nearly 1.4 billion people with super huge domestic demand, and the expanding middle-income group in the country is making an obvious trend of consumption and injecting huge resilience and inner drive for the economy.

China has gained rich experiences in macro control with a huge space and sufficient tools since it implemented its reform and opening up policy. Though it will inevitably encounter new problems and challenges on its way forward, the economic fundamentals sustaining its sound development remain unchanged, so do its economic characteristics such as strong resilience, sufficient potential and large space for maneuver.

Those who recognize the trend are wise and those who ride the trend will win. Only by dispelling the “floating clouds” when observing and analyzing Chinese economy, can one grasp the development trend and find the right path.

The ship of Chinese economy has always been sailing through tides and waves. With enhanced capability, energy and potential, Chinese economy will ensure long-term stability for high-quality development.

We have every reason to believe that as time goes by, the stability and certainty for China’s steady growth will finally defeat instabilities and uncertainties, and usher in a brighter future with long-term and high-quality development.

Boats sail faster when they go with the flows, and men stay committed when they walk along the roads. The momentum of steady growth for China’s economy has never changed and will be an underlying trend going forward.

By enhancing confidence, overcoming difficulties, and working hard, China will definitely sail its ship of economy toward a brighter future.