China’s incremental policy toolkit and economic stimulus measures have already achieved sounding results in the stock markets, which will translate into a boost to the country’s high-quality economic development cause in the coming months, said a German finance expert on Wednesday.
Hubertus Vaeth has been closely watching the developments as managing director of Frankfurt Main Finance, an initiative aimed at strengthening Frankfurt’s position as a global financial center. In an online interview with the China Global Television Network (CGTN), he emphasized that the policy kit’s detractors have been left with little ground to stand on amid an ongoing investment rally.
“You see, in the beginning, a lot of observers called it too little or too late, but they get quieter by the day. I say, it’s a right mix, beautifully timed. The package, actually be, between the central bank and the government, has been unprecedented. It has a volume of 1.5 percent of the GDP, and comprises a lot of instruments which I believe will be very effective. So, from the early responses of the stock market, you could clearly say it’s been a big success, and it’s been a very important move. Why am I saying that? Since the beginning of the year, and one which is a critical monetary aggregate — the monetary aggregate that comprises basically cash and term deposit and demand deposit — these have been a negative territory for a wide, and these moves now clearly give such a shift to liquidity in the market, so that’s a big boost,” he said.
Chinese shares extended their winning streak on Tuesday, the first trading day after the week-long National Day holiday, with the benchmark Shanghai Composite Index up 10.13 percent to open at 3,674.40 points.
Vaeth expressed his expectations that massive gains in the financial sector will soon help accelerate China’s efforts to build an economy based on innovation and advanced production — what policymakers in the country call “new quality productive forces.”
“Of course, now it’s a liquidity-driven rally, and it’s been historic by proportions. One week with a rally of 20 percent, that has been a very, very rare scene to experience. But obviously, they have to trickle down. It will be now a liquidity-driven rally, which hopefully will be supported by the trickling down of that impact into growth, into long-term economic effects. This will take a couple of months to really see, and when you see high quality, it has to be a massive shift away from a real estate-driven economy to technologically led recovery and clean-tech-led recovery,” he said.
‘Beautifully timed’ stimulus measures to boost China’s tech-led development: German expert
A China-proposed resolution on promoting accessibility for full enjoyment of all human rights by all was adopted by consensus on Thursday at the 57th session of the United Nations Human Rights Council in Geneva.
The resolution was co-sponsored by 30 countries including Cameroon, Honduras, Pakistan and Türkiye. It is the first time that the United Nations has passed a resolution on this topic. Many countries voiced support for the resolution, saying that it is beneficial for promoting healthy and sustainable development of international human rights.
Chen Xu, China’s permanent representative to the UN Office in Geneva and other international organizations in Switzerland, introduced the draft resolution at the session.
Chen noted that the establishment of an accessible environment stands as a cornerstone of human civilization’s advancement. It is also a fundamental guarantee for facilitating equal, comprehensive and convenient participation and integration of all individuals into social life, ensuring equitable sharing of economic and social development benefits, and fully realizing accessibility of human rights.
The accessibility cause can extend the benefits of development to all individuals, promoting equal opportunities and inclusive progress, Chen said. He urged all parties to jointly advance the accessibility cause.
“This initiative [resolution], focusing on accessibility, has spotlighted China’s human rights conception and developmental achievements on a global multilateral platform. It will urge all parties to pool consensus, bridge gaps, seek common ground while setting aside differences, and better promote and protect human rights with concrete actions through constructive dialogue and cooperation,” Chen said in an interview with China Central Television on the sidelines of the session.
UN adopts China-proposed resolution on promoting accessibility for full enjoyment of all human rights by all
