China’s leadership made a fresh push to boost foreign investors’ confidence in the country in the wake of an historic decline in overseas flows amid concerns about diminishing growth prospects.
Premier Li Qiang led a cabinet meeting that called on Chinese authorities to look at measures to attract more global capital, state broadcaster CCTV reported on Friday. The State Council said stabilizing foreign investment should be a key focus of the year’s economic work, and pledged to keep expanding market access and optimizing an environment for fair competition.
Net new direct investment in China from foreign businesses hit the lowest since the early 1990s last year, as economists downgraded long-term growth prospects for the country and geopolitical tensions grew. After sustained appeals by Beijing, the data improved in January, reaching around 113 billion yuan ($15.7 billion), the most for a single month since June.
Among the issues cited in the State Council gathering was the inconvenience foreign visitors face in making payments in China, given the ubiquitous use of domestic digital payments systems. Officials called for measures to promote the parallel use of mobile, card and cash payments. Officials also vowed to defuse local debt risks in the meeting.
China’s benchmark index CSI 300 extended its gains to a ninth session on Friday after a painful run of losses, with the longest ever streak of monthly outflows from mainland equities appearing set to come to an end in February.
Calls are growing for investors to consider picking up undervalued Chinese stocks, with market veterans such as Mark Mobius growing more optimistic due to valuations and improving return ratios.
Separately, the Chinese government is seeking to boost the sales of cars, home appliances and other consumer products, CCTV reported, citing a Friday meeting hosted by President Xi Jinping.
First Published: Feb 24 2024 | 12:04 AM IST