
The reopening of China has sent positive signals to politicans and economists alike. Guo Shuqing, party chief of the People’s Bank of China and Chairperson of China Banking and Insurance Regulatory Commission, said China’s economic growth will be back on track soon in an interview on Saturday. Meanwhile Morgan Stanley upgraded its China growth outlook on Monday. Shanghai and several other cities have set their growth targets above 5.5% for this year. And China’s new bank loans hit record in 2022.
Unlike the optimism in China, the World Bank warned on Tuesday the global economy is “perilously close to falling into recession” as it sharply cut its 2023 growth forecasts. The World Economic Forum, which opens its annual meeting next Monday, also warns of deeply interconnected global risks this year.
The IFF continues to bring you the latest China news and global development.

The International Finance Forum (IFF) jointly released the Xinhua International Financial Centre Development Index Report (2022) with Xinhua Index on December 30 .
The Report ranked the most influential finanical hubs of the world in 2022, with New York, London and Shanghai leading the top three places for a third year in a row, while Hong Kong and Tokyo got the fourth and fifth places.
The report ranked 45 cities based on their financial markets, growth and development, financial sector support, service levels and general environment.
The added value of Shanghai’s financial sector as a percentage of GDP rose to 18% from 11% between 2012 and 2021.
Launched by Xinhua Index in 2010, the Report aims to serve as a resource for encouraging the efficient distribution of global financial resources.
China's growth to be back on track soon, central bank official

China’s economic growth will be back on track soon after the country’s adjustment of Covid control measures, said an official from China’s central bank on Sunday.
The country will boost support for private firms, particularly monterary support for micro- and small-sized firms, said Guo Shuqing, Party Chief of the People’s Bank of China and Chairperson of China Banking and Insurance Regulatory Commission.
In an interview with the official Xinhua News Agency, Guo said China should treat all types of companies fairly and will support private firms’ issuance of stocks and bonds to widen financing channels.
He said the country’s rectification on the 14 internet platform companies has basically completed, signaling the country’s easing of internet crackdown.
Guo said the key for China’s economic recovery is to boost demands, particularly consumption.
China will use coordinated financial, fiscal and social policies to increase income of low- and middle- income people and groups hit hard by Covid-19.
China's 2022 new bank loans hit record

China’s new yuan lending reached 21.31 trillion yuan in 2022, up 1.36 trillion yuan from the previous year, data from the People’s Bank of China(PBOC) showed on Tuesday.
New bank loans extended 1.4 trillion yuan in December, up 266.5 billion yuan from the previous year.
The M2, a broad measure of money supply including cash circulation, saving and demands deposits, grew 11.8% to 266.43 trillion yuan by the end of December.
Meanwhile, yuan deposits by the end of last month reached 258.5 trillion yuan, up 11.3% from the previous year.
The total social financing, a broad measure of funds received from the financial system, grew 32.01 trillion yuan in 2022, 668.9 billion yuan more than the previous year.
Loans to the real economy grew 20.91 trillion yuan in 2022.
Morgan Stanley raises China 2023 growth outlook

Morgan Stanley has raised its China growth forecast by 0.3 percentage points to 5.7% for 2023 on Monday.
It’s the bank’s second upgrade for its China GDP growth outlook in less than a month. The bank raised its forecast for China’s GDP growth to 5.4% in December on the country’s reopening and easing of Covid control measures.
The bank also lifted its yuan target to 6.65 to the dollar and projected another 16% increase in MSCI’s Chinese equity index, Reuters reported.
“We believe the market is under-appreciating the far-reaching ramifications of reopening and the possibility that a robust cyclical recovery can occur despite lingering structural headwinds,” wrote Morgan Stanley economists.
Talks to include Pfizer Covid drug in China's insurance system fail

China failed to reach a deal with Pfizer to include its Covid antiviral drug- Paxlovid in China’s public health insurance system as the company quoted a high price, National Healthcare Security Administration (NHSA) said on Sunday.
The current coverage of Paxlovid under temporary measures by China’s basic medical insurance scheme will end by March 31 this year. Under the measures, a box of Paxlovid is lowered to 1890 yuan from its original price of 2300 yuan, Chinese media Yicai reported. The drug was approved in China in Feburary.
Despite failure to lower the price for Paxlovid, the NHSA included two Chinese Covid-19 treatment drugs in its coverage.
Shanghai , other Chinese cities set 2023 growth target above 5.5%

Shanghai and six other Chinese cities have set economic growth target between 5.5% to 7%, according to Chinese media reports.
In his government work report on Wednesday, Shanghai mayor Gong Zheng said the city ‘s GDP growth target will be above 5.5%.
Jinan, the capital city of Shandong province in eastern China, set its target GDP growth at above 5.5% while Hefei, capital city of Anhui province, aimed for GDP growth of above 6.5%.
Changsha, the capital city of Hunan province, expects its economy to grow around 7% this year.
China sees 250,000 arrivals on day one of border reopening
More than 250,000 arrived in China on Sunday on the first day of its border reopening, Xinhua reported citing customs data.
China saw 325 inbound flights, 396 inbound ships, 6,323 inbound trucks and 83 inbound trains on Sunday.
World Bank slashes 2023 growth outlook, warns of global recession

The World Bank warned on Tuesday the global economy is “perilously close to falling into recession” as it sharply cut its 2023 growth forecasts.
The bank slashed its growth outlook for 2023 to 1.7%, down from its projection of 3% in June, citing persistent high inflation, higher inerest rates, reduced investment and disruption caused by the conflict between Russia and Ukraine.
The World Bank forecast the US economy is to expand 0.5%, down from a June projection of 2.4%. It also downgraded its growth outlook for China and the euro-area to 4.3% and 0% in 2023, down from previous forecasts of 5.2% and 1.9% respectively.
Growth in emerging market and developing countries excluding China economies is expected to decelerate from 3.8% in 2022 to 2.7% in 2023.
“Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates,” said David Malpass, President of the World Bank.
Global food prices hit record high in 2022, UN agency

Global food prices hit record high last year, the Food and Agriculture Organisation of the United Nations (FAO) said on Friday.
The FAO Food Price Index which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 143.7 points last year, up 14.3% from 2021.
The December index dropped 1% from the previous year, led by a steep drop in the prices of vegetable oil and declines in cereal and meat prices.
December’s dip marked the ninth consecutive month of prices drops this year, said the FAO.
“It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies,” said FAO Chief Economist Maximo Torero.
Davos warns of 'polycrisis' ahead of meeting
The World Economic Forum (WEF) said 2023 is the year of polycrisis - deeply interconnected global risks triggered by conflict and geo-economic tensions on Wednesday.
Cost of living crisis, triggered by energy and food supply crunches, is the biggest short-term crisis, which could undermine efforts to tackle longer-term risks including climate change, biodiversity and investment in human capital, said the WEF in its latest Global Risks Report.
World energy and food crisises could persist for the next two years according to the report.
The report called for integrated and immediate mitigation to tackle these risks.
The annual meeting of the forum will open in Davos next Monday.
Afganistan signs oil extration deal with Chinese firm
Afganistan’s Taliban-led administration signed a oil extraction deal with a Chinese company in the country’s northern Amu Darya basin, according to media reports.
The contract was signed with Xinjiang Central Asia Petroleum and Gas Co (CAPEIC) last Thursday, according to reports from Reuters and Aljazeera.
The company will invest $150 million a year in Afghanistan, which will be increased to $540 million in three years for the 25-year contract, Reuters reported citing a spokesperson for the Taliban administration.
Ex-Fed chair Greenspan says US recession is most likely
Alan Greenspan, the former chairman of the Federal Reserve, said a recession is most likely outcome of the Fed’s rates hikes.
Despite the slowing-down of inflation rates in the last two months, efforts by the Fed are not “substantial enough to avoid at least a mild recession,” said Greenspan in a Q&A on Advisors Capital Management where he serves as a senior economic advisor.
Greenspan didn’t expect the Fed to loosen monetary policies prematurely unless it is absolutely necessary.
He served as Fed chair between 1987 and 2006.
Australian November inflation rises 7.3%
Austrialian CPI rebounded to an annual high of 7.3% in the twelve months to November, data from the Australian Bureau of Statistics showed on Wednesday.
Prices for housing, food and non-alcoholic beverages and transport, the biggest contributors to inflation, rose 9.6%, 9.4% and 9% respectively in November.
The price index reached 7.3% in September and dropped to 6.3% in October.
Core inflation grew 5.6% in the twelve months to November.
