Top China adviser tries to boost battered confidence in economy after weak stocks, financial data
- Liu He, Chinese President Xi Jinping’s top economic adviser, brings words of comfort to fragile business community
- Psychological effect of trade war bigger than actual impact, he says
China’s vice-premier Liu He on Friday sought to shore up confidence in the country’s slowing economy and faltering stock markets amid escalating trade tensions with the US, after shares fell to a four-year low on Thursday.
In an interview with state media, Liu, the top economic aide to President Xi Jinping, commented on the recent sharp decline of China’s stock market, tried to dispel worries on the economy shrouded in major uncertainties stemming from the trade war with the US, and reaffirmed the government’s commitment to treat private companies equally when confidence is running low.
The remarks, in a Q&A format released by Xinhua and People’s Daily in the early afternoon, followed a rare joint pep talk by the country’s three top financial officials earlier in the day – the central bank governor, the bank and insurance regulator boss and the securities commission chairman.
Watch: US-China trade war – day 105 and counting
Liu’s comments also came as Xi is set to visit Guangdong, the southern province where China’s economic liberalisation started 40 years ago, as early as this weekend.
Chinese President Xi Jinping set to visit Guangdong to boost confidence in economic model
On Friday morning China released disappointing third-quarter GDP data which showed the economy had recorded its lowest growth rate in nearly 10 years as the trade war exacted a toll on exporters and manufacturers.
China has introduced measures to steady its domestic investment and demand, but it will take three to six months to show up in the numbers
China’s economy expanded by 6.5 per cent in the three months to September, down from 6.7 per cent in the second quarter.
“The Sino-US trade friction has affected the market,” said Liu, who is also Beijing’s chief negotiator with Washington over trade issues. “But frankly speaking, the psychological effect is bigger than the actual impact.”