China's incremental policy toolkit and economic stimulus measures have already achieved sounding results in the stock markets, which will translate into a boost to the country's high-quality economic development cause in the coming months, said a German finance expert on Wednesday.
Hubertus Vaeth has been closely watching the developments as managing director of Frankfurt Main Finance, an initiative aimed at strengthening Frankfurt's position as a global financial center. In an online interview with the China Global Television Network (CGTN), he emphasized that the policy kit's detractors have been left with little ground to stand on amid an ongoing investment rally.
"You see, in the beginning, a lot of observers called it too little or too late, but they get quieter by the day. I say, it's a right mix, beautifully timed. The package, actually be, between the central bank and the government, has been unprecedented. It has a volume of 1.5 percent of the GDP, and comprises a lot of instruments which I believe will be very effective. So, from the early responses of the stock market, you could clearly say it's been a big success, and it's been a very important move. Why am I saying that? Since the beginning of the year, and one which is a critical monetary aggregate -- the monetary aggregate that comprises basically cash and term deposit and demand deposit -- these have been a negative territory for a wide, and these moves now clearly give such a shift to liquidity in the market, so that's a big boost," he said.
Chinese shares extended their winning streak on Tuesday, the first trading day after the week-long National Day holiday, with the benchmark Shanghai Composite Index up 10.13 percent to open at 3,674.40 points.
Vaeth expressed his expectations that massive gains in the financial sector will soon help accelerate China's efforts to build an economy based on innovation and advanced production -- what policymakers in the country call "new quality productive forces."
"Of course, now it's a liquidity-driven rally, and it's been historic by proportions. One week with a rally of 20 percent, that has been a very, very rare scene to experience. But obviously, they have to trickle down. It will be now a liquidity-driven rally, which hopefully will be supported by the trickling down of that impact into growth, into long-term economic effects. This will take a couple of months to really see, and when you see high quality, it has to be a massive shift away from a real estate-driven economy to technologically led recovery and clean-tech-led recovery," he said.
'Beautifully timed' stimulus measures to boost China's tech-led development: German expert
Chinese President Xi Jinping's New Year message on Tuesday inspired people across China, with many saying achievements of the past year mentioned by Xi encouraged them to do better in 2025.
Delivering the message on New Year's eve, Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, reviewed China's journey in the past year, saying the country and its people "have experienced winds and rains and seen rainbows," and the touching and unforgettable moments are like still frames showing how extraordinary a year China has had.
"President Xi said that the most important job is to ensure a happy life for the people. We now have medical insurance for hospital visits, and the education for our children is free. We also run a homestay business, and our income has increased every year. We have full confidence in the future, and people of all ethnic groups will remain closely united like the seeds of a pomegranate to create a better life together," said a villager in northwest China's Xinjiang Uygur Autonomous Region.
Xi mentioned China's grain production in his speech, which encouraged a farmer in central China's Henan Province.
"I was greatly encouraged by President Xi's message, which said our country's grain production surpassed 700 million tons in 2024, and 'China's bowls are now filled with more Chinese grain.' We grain farmers are full of confidence, and we must work harder and stay focused, make good use of modern agricultural technology to improve grain output and quality," said grain farmer Cui Meihong.
Xi also spoke highly of Chinese athletes, saying their performance at the Paris Olympics fully demonstrated the vigor and confidence of young Chinese.
"President Xi mentioned us athletes forging ahead in his New Year message. In 2025, I will keep pushing myself to achieve more, show the morale and sharpness of Chinese youth in the new era, show the open, inclusive, high-spirited and enterprising image of our country in the new era, and inspire more people to strive for their dreams with my sportsmanship," said Chinese shooter Sheng Lihao, who won two gold medals at the Paris Olympics.
In the past year, China fostered new quality productive forces in light of actual conditions, Xi said in his speech.
For the first time, China produced more than 10 million new energy vehicles in a year, and breakthroughs were made in integrated circuit, artificial intelligence, quantum communications and many other fields, Xi said.
He also mentioned the Shenzhen-Zhongshan Link, a mega cross-sea passage in south China that features two bridges, two artificial islands, and an underwater tunnel.
"General Secretary Xi mentioned the Shenzhen-Zhongshan Link in the New Year message. Since it opened to traffic six months ago, more than 15 million car trips have been made on it. We will manage and utilize the Shenzhen-Zhongshan Link well, and provide better transport service for the cause of building the Guangdong-Hong Kong-Macao Greater Bay Area into a strategic pivot of the new development pattern, a demonstration site for high-quality development, and a leading site for Chinese modernization," said Yang Yang, deputy director of the management center of the Shenzhen-Zhongshan Link.
"As a worker in the new energy vehicle (NEV) industry, I am extremely proud of the rapid development of China's NEV sector. Technologies such as automated robots, 5G communications and digital twins have greatly improved our work efficiency, and I will continue to work with passion in 2025 to build better cars for our customers and create greater value for society," said autoworker Wang Yun.
"China's achievements in integrated circuit, artificial intelligence and quantum communications mentioned by President Xi have greatly encouraged us. We will strive courageously to promote the miniaturization and chip-based development of quantum communications, and contribute more of our wisdom and power to building China's strength in science and technology," said Tang Shibiao, head of the Anhui Quantum Computing Engineering Research Center.
People encouraged by China's achievements in past year after Xi's 2025 New Year message
