China's potential growth rate to remain in reasonable range

0 Comment(s)Print E-mail Xinhua, November 3, 2022
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China's potential growth rate is expected to remain in a reasonable range, the country's central bank governor said Wednesday.

Despite some challenges and downward pressure, the Chinese economy has remained broadly on track, said Yi Gang, governor of the People's Bank of China (PBOC), at the Global Financial Leaders' Investment Summit held by the Hong Kong Monetary Authority via video.

He said that China's monetary policy stays accommodative to support the real economy, and the financial market makes an efficient allocation of resources.

The central bank has utilized structural monetary policy tools, providing financial support to key areas such as agriculture, small-and-medium-sized enterprises, and green development, Yi said.

He added that the PBOC is also supporting investment in capital expenditure and infrastructure, the effect of which will be seen in the fourth quarter.

Thanks to the sound long-term fundamentals of China's economy, the RMB exchange rate has remained relatively stable against a basket of currencies since the beginning of the year, according to Yi.

The RMB exchange rate will continue to remain relatively stable at a reasonable and appropriate level, maintaining its purchasing power and keeping its value stable, Yi said.

To support the healthy development of the housing sector, the central bank has cut mortgage rates, lowered down payments, and encouraged the banks to introduce a special lending program for developers to ensure the timely completion of unfinished housing projects, Yi said.

The sales and lending of the real estate sector have seen marginal improvement recently, he said, adding that with ongoing urbanization in China, the housing market can hopefully achieve a soft landing.

Hong Kong is and will continue to be an important international financial center, connecting the mainland and international markets, according to the central bank governor.

He said Hong Kong's economy and financial system have shown remarkable resilience despite disruptions in recent years.

Hong Kong has great potentials in deepening connections with the mainland financial market, financing and investing under the Belt and Road Initiative, fintech and green finance, said Yi.

To support Hong Kong's development, the PBOC will continue to help Hong Kong maintain a law-based, open, inclusive and enabling business environment and enhance its status as an international financial center, Yi said.

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