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China Economic Daily Brief – June 19, 2024

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China Economic Daily Brief Newsletter

[cs_content _p=’3415′][cs_element_section _id=”1″ ][cs_element_layout_row _id=”2″ ][cs_element_layout_column _id=”3″ ][cs_element_text _id=”4″ ][cs_content_seo]China to Expand Opening-Up of Venture Capital Investment
China is set to broaden the opening-up of its venture capital sector, aiming to attract more international capital and expertise. The government plans to implement new policies that facilitate foreign investment in high-growth start-ups and emerging industries. This initiative is expected to boost innovation and support economic growth by leveraging global financial resources and knowledge.

China to Facilitate Foreign Investors in Domestic Securities
New measures will be implemented to streamline processes for foreign investors looking to invest in domestic securities. These initiatives are designed to enhance market accessibility and stability, making it more attractive for global investors to engage with China’s financial markets. As a result, this could support the development of a more robust and dynamic capital market.

China to Step Up Support for “Little Giant” Firms
China will increase its support for “little giant” firms—small and medium-sized enterprises (SMEs) that are leaders in their niche markets. These companies will receive enhanced policy support and funding aimed at driving technological innovation and economic diversification. In 2023, SMEs contributed to 60% of China’s GDP and 80% of employment, highlighting their importance in the national economy.

New Measures to Deepen Reform of STAR Market
China has unveiled new measures to deepen reforms of the STAR Market, the country’s tech-focused stock exchange. The reforms aim to improve market mechanisms, enhance regulatory frameworks, and support the listing and growth of high-tech and innovative enterprises. This initiative is part of broader efforts to foster a more dynamic and robust capital market, crucial for the country’s technological advancement.

China to Keep Monetary Policy Accommodative
The central bank governor announced that China will maintain an accommodative monetary policy to support economic growth. This approach aims to ensure sufficient liquidity in the financial system, promote lending, and stabilize the economy amid global uncertainties. In 2023, China’s GDP grew by 5.5%, and maintaining a supportive monetary environment is seen as key to sustaining this growth trajectory.\n\n[/cs_content_seo][/cs_element_layout_column][/cs_element_layout_row][/cs_element_section][/cs_content]

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