BEIJING, Oct. 25, 2024 /PRNewswire/ — A news report from China.org.cn on a raft of incremental policies proposed by China recently:
Recently, China rolled out a raft of incremental policies, which caused great turbulence in the stock market. When trading began on Oct. 21st, the three major indices (Shanghai Composite Index, Shenzhen Component Index, ChiNext Index) for China’s A-share market all opened high, followed by a brief decline and seesawed growth; The BSE 50 set a record high after days of consecutive growth.
A soaring stock market implies that foreign investment is flowing back; multinational financial services companies like J.P. Morgan and Goldman Sachs also harbor positive anticipation for Chinese assets.
What has brought confidence to these foreign invested companies?
First, for companies, especially the foreign-invested ones, a fair and transparent business environment is pivotal. In the raft of incremental policies mentioned at the beginning, a primary policy in business support is regulating enterprise-related law enforcement and monitoring, and putting an end to problems such as over-taxing and irregulated fining, to increase the confidence in the market and reassure enterprises in their expectations.
Head of Endress+Hauser, a leading measurement and automation technology supplier from Switzerland, said that in recent years, it was not only them who reached out to the local government in China for support, the local government also came to them from time to time to see if they encountered difficulties in running business in China. Now, Endress+Hauser plans to continue investing 2 billion RMB in China in the following three to five years, and its two new factories are under expansion.
Secondly, China has provided foreign investors with a more open Chinese market. As China opens up its medical and health sector further, Eli Lilly and Company from the U.S. have announced its decision to invest an additional 1.5 billion RMB in China. It is also planning to introduce its innovation incubator in China, so that clinical studies and medical R&D can be catalyzed. What’s more, Tesla has built the very first Gigafactory outside the U.S. in Shanghai, with its Megafactory under construction also in Shanghai; the total assets of foreign-funded banks in China hit 3.86 trillion RMB… they can testify to how China has been opening its market.
But the country hasn’t stopped its efforts in deepening opening-up. In the raft of incremental policies, the Chinese authorities proposed to expand the Catalogue of Industries for Encouraging Foreign Investment, launching a new batch of major foreign-invested projects, implementing more relaxed visa-free transit policy, etc. These will no doubt bring more convenience and opportunities to foreign investors.
Thirdly, China has demonstrated strong resilience and stable economic performance with positive momentum. Based on recent statistics, the country’s total import and export volume in the first three quarters reached 32.33 trillion yuan, with each quarter all exceeding 10 trillion with a constantly rising trajectory. Usually, western holidays like the Halloween and the Thanksgiving will fuel exports, which can bring Q4 projections to over 11 trillion and the 2024 total to about 45 trillion RMB hopefully. As for the stock market, given that the U.S. Fed has cut its policy rate, one can say China is now the safest, and most stable market with the highest ROI.
This raft of incremental policies is comprehensive and is designed for the long-term good, rather than limited to a certain field or a certain year. For foreign investors in China, the policies signify China’s determination to realize economic transformation as well as its potential for growth.
So, where does the confidence of foreign business-runners come from? It comes from China’s practical and effective policy toolkit, the resilient, stable economic performance with a promising outlook, as well as the huge and energetic market.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
A raft of incremental policies lit up the confidence of foreign investors
http://www.china.org.cn/video/2024-10/25/content_117508399.htm
View original content to download multimedia:https://www.prnewswire.com/news-releases/a-raft-of-incremental-policies-lit-up-the-confidence-of-foreign-investors-302287294.html
SOURCE China.org.cn
