China’s State Council vows measures to lure foreign investment: report | World News – Business standard

China’s leadership has made a new push to boost foreign investor confidence in the country, in the wake of a historic decline in overseas remittances and concerns about declining growth prospects.

Premier Li Qiang led a cabinet meeting that called on Chinese authorities to look at measures to attract more global capital, state broadcaster CCTV reported on Friday. The State Council said stabilizing foreign investment should be a major focus of this year’s economic work, pledging to continue expanding market access and optimizing an environment for fair competition.

Net new direct investment in China by foreign companies last year reached the lowest level since the early 1990s, as economists downgraded the country’s longer-term growth prospects and geopolitical tensions increased. Following persistent calls from Beijing, January figures improved to reach about 113 billion yuan ($15.7 billion), the highest level in a single month since June.

One of the issues raised at the State Council meeting was the inconvenience foreign visitors face in making payments in China, given the ubiquitous use of domestic digital payment systems. Officials called for measures to promote the parallel use of mobile, card and cash payments. Officials also vowed at the meeting to defuse local debt risks.

China’s benchmark CSI 300 index extended its gains to a ninth session on Friday after a painful losing streak that appeared to end the longest streak of monthly outflows from mainland stocks in February.

Calls are growing among investors to consider snapping up undervalued Chinese stocks, while market veterans like Mark Mobius are becoming more bullish on valuations and improving return ratios.

In addition, the Chinese government is trying to boost sales of cars, home appliances and other consumer products, CCTV reported, citing a Friday meeting hosted by President Xi Jinping.

First print: February 24, 2024 | 12:04 pm IST