China’s Xi Vows to Promote Healthy Development of Capital
(Bloomberg) -- Chinese President Xi Jinping urged efforts to regulate and guide the healthy development of capital and promote its positive role, signaling a softening stance toward the country's struggling private sector as the economy slows.
Speaking at a Friday gathering of the Politburo, the Communist Party's top decision-making body, Xi also vowed to deepen capital market reforms and offer more space for the development of different types of capital, Xinhua News Agency reported Saturday.
Xi's comments came after the Politburo vowed sweeping pledges earlier this week to boost economic growth that sparked a Friday rally in both Chinese stocks and the yuan. The remarks are a fresh indication that Beijing is prioritizing growth and job creation over a crackdown on the nation's once high-flying tech sector and debt-laden property industry.
Xi also reiterated the authorities' stance to prevent the “disorderly expansion” of capital and guard against financial risks. He called on officials to strengthen anti-corruption efforts in the area of capital and resolutely crack down on profiteering that's backed by power.
The top leadership's latest rhetoric highlights the daunting challenges China faces in arresting a sharp economic slowdown as the country's strict Covid Zero strategy has forced major cities like Shanghai to shut down, disrupted business operations of multinational firms and roiled global supply chains.
The Politburo's commitment to meeting its growth target of about 5.5% for the year despite the Covid upheaval suggests stronger stimulus measures may be on the cards, including a ramp up in infrastructure spending.
©2022 Bloomberg L.P.
With assistance from Bloomberg
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
