An index gauging the development of China's small and medium-sized enterprises (SMEs) rebounded significantly in the third quarter as government pro-growth measures took effect. The encouraging figure, which came ahead of the release of economic data for September and the third quarter, signaled that the economy is on a steady path of recovery, experts said. The China Small and Medium Enterprise Development Index rose by 0.2 points in the third quarter to 89.2, after a decline of 0.3 points in the second quarter, the China Association of Small and Medium Enterprises (CASME) said. CASME Director Xie Ji said that the index was near a two-year high due to the impact of government policies. Among the sub-indexes, the macro-economic sentiment index, a measure of enterprises' confidence, rose by 0.5 points, recording its largest increase. The encouraging data indicated that China's economy returned to a steady recovery track in the third quarter, Zhou Maohua, Economist at China Everbright Bank, told the Global Times. Zhou noted that the better-than-expected economic data since August and robust tourism and consumption during China's Golden Week holidays all indicated that consumer confidence in China is improving and market expectations are bouncing back.
“Based on the economic data and trends seen in July and August, it is expected that the GDP growth rate in the third quarter could reach 5% or even higher,” Zhou said. Tian Yun, a veteran economist based in Beijing, said that there should be continued upward momentum if pro-growth policies are consistently implemented, especially in addressing local debt and stabilizing the real estate market. He expected the GDP growth rate to be about 5% in the third quarter, rising above 5% in the fourth quarter.
China posted better-than-expected economic data in August. Value-added industrial output increased by 4.5% year-on-year, higher than the reading of 3.7% in July, and retail sales grew by 4.6%, accelerating from 2.5% in July. Vibrant domestic tourism during the Golden Week holidays probably added fuel to consumption in the third quarter. Holiday tourism generated CNY753.43 billion in revenue, up 129.5% year-on-year and up 1.5% from 2019, data from the Ministry of Culture and Tourism showed. This offered further proof that the “China collapse” claim and the “slower-than-expected economic rebound” hyped by Western officials and media outlets are both absurd, experts said.
More than 100 top multinational companies have confirmed they will participate in the 134th China Import and Export Fair, also known as the Canton Fair, which opened on October 15. The number of overseas buyers has significantly increased, spanning 215 countries and regions, up 23.5% from the previous edition, the Global Times reports.
