Economic recovery

PIIE researcher Tianlei Huang explains how local governments did not make the best of the local special bond programme, a major instrument of fiscal stimulus after the pandemic in 2020. He considers if the programme needs to be downsized, and resources possibly channelled to other areas such as building human capital.

With another record year for the number of graduates in China, Lianhe Zaobao correspondent Wong Siew Fong notes that the employment situation appears bleaker than ever. Those seeking to join the civil service are facing even tougher competition as government agencies cut down on hiring, while the private sector may not be the most attractive option for them.

Chinese academic Chu Zhaogen notes that while China is well poised to make its mark on the global economy, it needs to keep its eyes open and wits about it, so that it can seize on opportunities, not least in the field of technological innovation.

Given the current challenges to China’s economy, such as the soft property market and weak domestic demand, how achievable is China’s growth target of 5% for this year? Lianhe Zaobao correspondent Chen Jing tells us more.

Lianhe Zaobao correspondent Yang Danxu notes that the recent public outcry against the heads of two prominent private enterprises for apparent transgressions in the name of “patriotism” does not bode well for the authorities’ efforts in support of the private sector.

Red-hot spending data over the recent Spring Festival in China caused the stock market in Hong Kong to rise three days in a row after it resumed trading first, with the country’s A-shares following suit a few days later. How long will this recovery in spending and such positive market sentiments last? Will this allow the Chinese economy to shake off fears of deflation and get over its confidence crisis? What other stabilising measures will the authorities introduce?

Academic Chen Gang notes that while China needs to reform its current economy to maintain growth, whatever adjustments that are made will have to be bearable for the people. Also, some measures may be painful, but necessary.

One of Shanghai’s commercial areas has seen a boost in consumption since the New Year, partly driven by the popularity of the Blossoms Shanghai television series. Even as consumption returns to pre-pandemic levels, officials will need to do more to ensure that this recovery remains sustainable over the long term. Lianhe Zaobao correspondent Chen Jing tells us more.

Chinese academic Han Heyuan notes that amid longstanding challenges, an emerging issue could sink China’s capital market further in dire straits: a declining population.