Reserved tools to resist economic fluctuations beyond expectations
Prime Minister Li Keqiang said yesterday that the Chinese economy has been operating steadily this year and there have been some positive changes, indicating that the strong signal of stable market expectations has been effective. If the economy exceeds expectations, China has sufficient spare tools to take effective measures.
Li Keqiang stressed in his speech at the opening of the Boao Forum for Asia in Hainan yesterday that China adheres to the macro policy orientation and will never engage in floods.
Stable market expectations, no flooding
He pointed out that the Chinese economy has been operating steadily this year and there have been some positive changes. The market expects a significant improvement. From the first two months of the data, the main economic indicators such as employment, prices, and balance of payments are relatively stable, and fixed asset investment is steadily rising. Confidence index, manufacturing new order index rose significantly, and capital market transactions were active. He also said that in March, the average daily power generation and electricity consumption increased by double digits, and the growth of import and export freight increased, which means that the physical volume growth exceeded expectations.
Regarding the positive changes in the economy, Li Keqiang reiterated that there was no loosening of monetary policy in the process, indicating that the good situation was not achieved by wide-ranging or flooding. Similarly, in terms of finance, the budget did not break through the 3% internationally recognized warning line. However, he also pointed out that this year’s instability and uncertainties have increased significantly, and the economic growth rate does not rule out fluctuations. However, as long as the economic operation is maintained within a reasonable range this year, China will maintain its strategic strength.
Li Keqiang revealed that if the economic operation exceeds the expected changes, China has sufficient spare tools to take effective measures, but he stressed that these tools are not going to take the path of the past, will not flood the water, and will not maintain short-term growth. And damage to long-term development.
In addition, he stressed that China’s commitment to a larger scale of tax cuts and other measures must be honored. Tax cuts and fee reductions are important measures to stimulate market vitality and cope with economic downturn this year.
In terms of opening up financial markets, Li Keqiang proposed that the financial industry will continue to expand to the outside world. Banks, securities and insurance industries are accelerating the full liberalization of foreign investment in foreign markets. He said that China will further relax foreign market access, expand the value-added telecommunications, medical care, education and other modern service industries, as well as transportation, infrastructure, energy resources and other fields.
Pushing convenience to Hong Kong and Macao measures to help with the Mainland
As for Sino-US relations, Li Keqiang said that there is no trust deficit between China and the United States, and it is necessary to prevent the trust deficit from happening, and hopes that the Sino-US trade consultation will achieve results.
Hong Kong, Macao and Taiwan, he said that he will further expand market access for Hong Kong, Macao and Taiwan investment, and introduce measures to facilitate the exchange of personnel between the Mainland and Hong Kong and Macao and the flow of production factors.
In addition, the mainland stock market and the foreign exchange market both closed down yesterday. The Shanghai Composite Index closed down 0.9%, closed at 2,994 points, and lost another 3,000 points. The total turnover of the two cities was 666.37 billion yuan (RMB, the same below), the lowest since March 4, and the net outflow of funds from the north was 1.121 billion yuan. Capital inflows have slowed down and the upward momentum is insufficient. It is expected that the trend will continue to fluctuate in the short term. In terms of exchange rate, the onshore RMB against the US dollar fell below the 6.74 mark yesterday, and then the decline narrowed to close at 6.7288, a five-week low.