1、Strengtheningendogenous driversto support Chinaseconomic upturnAugust 2024In H1,Chinas economy saw steady performance despiteadversity amid a changing external environment.The grossdomestic product(GDP)grew by 5%year-on-year(YOY)1and thefundamentals sustaining Chinas long-term growth remainunchanged

2、.Despite the GDP fluctuation in Q2,Chinas foreign tradesustained upward momentum and the growth rate acceleratedquarter by quarter.The industrial production remained relativelysteady,and the manufacturing sector continued to underpin theinvestment demands.Due to subdued purchasing power andconfidenc

3、e,the overall strength of consumption momentum inQ2 was weaker compared with the same period in previous years.To optimize and expand service offerings,the governmentintroduced new measures in August to encourage localgovernments to explore opportunities in traditional sectors suchas catering,housek

4、eeping and elderly care and promote growthin“life-enhancing consumption”and“new types of consumption”.Chinas economy is now at a critical stage of structuraltransformation and optimization.Insufficient domestic demandappears to be the major challenge,and the foundation foreconomic recovery still nee

5、ds to be consolidated.The ThirdPlenary Session of the 20th CPC Central Committee2highlightedthe importance of enhancing the consistency of macro-policyorientation and advancing reforms in key areas,as well as theneed to mitigate risks related to real estate sector,localgovernment debt and small and

6、medium-sized financialinstitutions in a coordinated manner while maintaining steadyeconomic growth3.Underpinned by the implementation of previous measures,proactive fiscal policies are expected to further boost investmentin H2.A portfolio of policies including large-scale equipmentrenewal and green