The Sunday Mail
China releases key reports
China has released two reports on its national economic and social development plans and budgets for 2022 which were approved at the fifth session of the 13th National People’s Congress. The report on the implementation of the 2021 national economic and social development plan and on the draft 2022 national economic and social development plan covers the implementation of the 2021 national economic and social development plan; general requirements, main objectives and political orientations for economic and social development in 2022; and the major tasks of economic and social development in 2022.
The report on the execution of the central and local budgets for 2021 and on the draft central and local budgets for 2022 covers the execution of the central and local budgets for 2021; the draft central and local budgets for 2022; and budget reform and development in 2022.
China confident of hitting annual growth target
China is confident that it has the necessary conditions to achieve this year’s economic targets through hard work despite the prolonged pandemic and growing challenges, the National Bureau of Statistics (NBS) said on Tuesday. In the latest government work report, China set its economic growth target for 2022 at around 5.5%. The country’s major economic indexes improved over the January-February period, with leading production and demand indicators showing solid year-on-year growth. From January to February, China’s value-added industrial production and consumer goods retail sales rose 7.5 and 6.7 percent year on year, up 3.2 and 5 percentage points, respectively, only in December of last year. China’s fixed asset investment rose 12.2% year-on-year, while property development investment rose 3.7%. The Spring Festival holiday and the 2022 Beijing Winter Olympics fueled the rebound in the service sector, including catering, rail and air transportation, as well as cultural and entertainment activities.
China’s central bank injects liquidity
China’s central bank injected liquidity into the financial system through open market operations on Tuesday to maintain liquidity in the market. A total of 200 billion yuan (about $31.4 billion) has been injected into the market through a medium-term loan facility (MLF), according to the People’s Bank of China, the central bank. The MLF tool was introduced in 2014 to help commercial and political banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral. The funds will mature in one year at an interest rate of 2.85%. Meanwhile, the central bank pumped 10 billion yuan (about $1.6 billion) into the market through seven-day reverse repos at an interest rate of 2.1%. A reverse repo is a process in which the central bank buys securities from commercial banks through tenders, with an agreement to resell them in the future. This decision was aimed at maintaining reasonable and abundant liquidity in the banking system.
House prices in China up slightly
China continued to see a generally stable housing market in February, with house prices in 70 major cities posting slight month-on-month increases, according to official data from the National Bureau of Statistics released on Wednesday. New home prices in four first-tier cities – Beijing, Shanghai, Shenzhen and Guangzhou – rose 0.5% month on month in February, compared with a 0.6% increase recorded in January. Used home prices in the four cities rose 0.5%, up 0.4 percentage points from January’s growth. New home prices in 31 second-tier cities were flat from January, while those in 35 third-tier cities recorded a monthly decline of 0.3 percent last month. Year-over-year, new home prices in first-tier cities rose 4.4% in February, unchanged from the expansion seen in January. New home prices in second-tier cities rose 2.1 percent while those in third-tier cities fell 0.1 percent from the same period last year.
China’s first high-speed railway to cross the China Sea begins track laying
A pair of 500-meter steel rails have been successfully laid on a concrete bed at Putian Railway Station in east China’s Fujian Province, marking the start of track-laying work on the first high-speed railway crossing the sea of the country. The 277 km railway connects the provincial capital of Fuzhou with the port city of Xiamen. With an expected speed of 350 km/h, it should cut travel time between the two cities to less than an hour. Using a state-of-the-art machine, workers can lay the left and right tracks at the same time and nearly double their efficiency. At the current rate of approximately 6 km of track laid per day, all track laying work should be completed by the end of this year. The railway construction project is expected to be completed in 2023.
Manyika Kangai helps African businesses realize the full potential of China’s vast opportunities. He has over 15 years of experience in facilitating and advising on trade and investment agreements between China and Africa. Feedback: +27743487997/www.muvambi-sa.co.za