The Chinese government has hailed the success of efforts to curb financial risk after the economy posted its 12th consecutive quarter of 6.7 – 6.9% growth.
A report from the State Council made before the 5th meeting of the 13th Standing Committee of the National People’s Congress on 28 August said that China had seen its 12th consecutive quarter of GDP growth between 6.7 – 6.9% after posting an expansion of 6.8% for the first half of 2018.
He Lifeng (何立峰), chair of the National Development and Reform Commission, said that “in the first half of the year the economy maintained overall steadiness and improved amidst stability.”
“Key macro-control indices are situated within a rational range, the economic structure continues to optimise, [and] the prevention and resolution of financial risk has obtained initial success.
“The environment is improving, and feelings of gain, well-being and security amongst the masses of the people have strengthened. ”
The State Council report said that structural deleveraging was seeing orderly progress following the unveiling of a series of risk control measures in the areas of financial institution asset management, local government hidden debt and real estate.
The first half of 2018 saw 25.38 billion yuan in newly implemented marketised debt-for-equity swap projects, while macro-leverage growth is easing and financial malfeasances has seen “initial containment.”
“The resolution of risk in relation to certain financial holding companies posting wild growth has obtained active progress, shadow banking risk has been effectively controlled, and financial risk is shifting from a state of diffusion to a state of moderation.”
According to the State Council report consumer prices rose by 2% in the first seven months of the year, while new urban jobs were 8.8 million, for a year-on-year increase of 250,000.
As of the end of the second quarter China’s nationwide urban registered unemployment rate was 3.83%, for a year-on-year decline of 0.12 percentage points.
Fiscal revenues for the first seven months of the year saw growth of 10%, while the M2 money supply saw growth of 8.5% as of the end of July, with outstanding total social financing rising by 10.3%.
The report pointed to the need to further expand effective domestic demanding, stressing the critical role played by investment towards optimisation of the supply structure, as well as full use of the stimulus role of government investment at all levels, and the implementation of the 165 major engineering projects outlined by the 13th Five Year Plan.
Beijing also plans to “actively attract and expand private investment” and “pragmatically implement various policies and measures to stimulate private investment activity,” while also further promoting the public-private partnership model in a “standardised and orderly” manner.