This aerial photo taken on March 13, 2023 shows a container terminal of Taicang Port, east China's Jiangsu Province. (Xinhua/Li Bo)
BEIJING, April 17 (Xinhua) -- A number of foreign financial institutions have shown optimism about China's economic recovery in their recently-released outlook reports for the global economy in the second quarter (Q2) of 2023, reported Securities Daily Monday.
China has been seeing signs of acceleration in economic recovery, said Standard Chartered Bank in its report on global market outlook in Q2, 2023 which predicts a growth of over 5 percent in China's economy this year.
China's latest economic data showed that the road congestion index in first-tier cities has returned to the level of three years ago, said Zhao Yaoting, a global market strategist with U.S. asset management firm Invesco, adding that China's economic recovery has been led by consumption.
Chinese households have accumulated a large amount of savings in recent years which is expected to drive economic growth to a certain extent when converting into consumption, Zhao noted.
Recent data showed a strong rebound in the Chinese economy, noted U.S. asset management firm Vanguard in its April issue of market outlook report, adding that from the perspective of macro policies, China is now in a phase of economic upturn, and has provided liquidity and credit support through other means, a strong signal that China is boosting market confidence.
Vanguard also stated that its base forecast for China's GDP growth of 5.3 percent in 2023 is unchanged.
In the latest World Economic Outlook report released recently, the International Monetary Fund (IMF) upheld its prediction for China's economic growth of 5.2 percent in 2023, and called China a key engine of world economic growth.
As the economy recovers, the profits of Chinese enterprises are expected to rebound, said U.S. investment management firm AllianceBernstein in its monthly commentary released on April 7, noting that at present, the market estimates that the earnings per share (EPS) of A-share listed companies is expected to increase by 20.8 percent in 2023, outperforming major markets such as Europe, the U.S. and Japan.
The monetary conditions in China are relatively loose compared with Europe and the U.S., which will benefit the fund momentum of the stock market, and if the fundamentals of A shares continue to improve, the continued inflow of foreign capital can still be expected, according to AllianceBernstein.
(Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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