FX.co ★ China’s top official paints rosy picture of domestic economy

China’s Vice Prime Minister He Lifeng unveiled his optimistic assessment of current economic conditions and bullish forecasts. From his viewpoint, the domestic economy has been developing like clockwork. He acknowledged the remarkable resilience of China’s economy which owes its momentum to a wise policy of the ruling Communist party.

Managing Director of the International Monetary Fund Kristalina Georgieva praised Beijing’s efforts to revise economic priorities and drivers of economic growth. The institution is inspired by the progress achieved.

Apart from the top government position, He Lifeng also serves in the Politburo of the Chinese Communist Party. Recently, he was elected the director of the Office of the Central Financial and Economic Affairs Commission. The policymaker seems to sugar-coat glaring economic woes that scare off foreign investors and entail a massive capital flight.

It is common knowledge that the second-largest global economy has been limping. Discouraged by the underperformance of China’s companies, troubles in the property market, and downgraded GDP forecasts by influential lending institutions, investors withdrew their capital from the domestic stock market. No wonder, China’s top officials endeavor to assure investors of a temporary slowdown. Let’s wait and see whether Beijing will be able to lure investors back.