Reading the tea leaves of China's economic development

Li Xunlei, chief economist at Zhongtai Securities, believes promoting the development of leading enterprises specializing in niche sectors is the only way for China to transform from a manufacturer of quantity to one of quality, as well as a key step to achieving high-quality development.

Current domestic policies stress the importance of cross-cyclical adjustments and the balance between short-term growth and medium to long-term economic development quality.

Innovation and technological progress that can improve the quality of the economy will be the major drivers of growth over a certain period of time.

He Haifeng, chief economist at Guotai Junan Securities, said high-quality economic development is actually sustainable development, and sustainable development has natural endogenous requirements for the pace of economic growth.

Therefore, the economic growth pace should still be guaranteed under the background of high-quality economic development.

The high-quality development of China's capital market should reform its registration system and deepen the reform and opening-up of the capital market in a comprehensive way.

We should continue to improve the quality of listed companies; refine the delisting mechanism and establishment of multi-level markets; push ahead key reforms such as optimizing securities law enforcement, as well as the judicial and investor-protection systems; and boost key institutional innovations.

Shao Yu, chief economist at Orient Securities

Shao Yu, chief economist at Orient Securities, addressed the misperception of high-quality development, saying it does not mean turning a blind eye to speed. Instead, it should take a certain speed as a prerequisite while no longer blindly pursuing speed at the expense of quality.

High-quality development must give full play to the role of capital markets.

In the future, as the demographic dividend fades away, the rise of the total factor productivity will rely more on the optimal allocation of capital instead of labor as has been the case over the past 40 years. This shift will be the core logic of financial supply-side reform and main thread for market-oriented reform of the financial sector.

Guo Lei, chief economist at GF Securities, highlighted investment in carbon peaking and carbon neutrality, which are expected to gradually take on the fixed asset investment in real estate, thus urging efforts on industrial upgrading of the manufacturing sector.

It is also of important significance for carbon neutrality to use external costs to promote the optimization of the energy, industrial and technology structures.

Zhao Wei, chief economist at Sinolink Securities, said high-quality development is green development where ecology is the priority.

It is necessary to adhere to green and low-carbon development in the long term, and gradually realize the overall green and low-carbon transformation of China's production and lifestyle under the framework of carbon peaking and carbon neutrality.

Green and low-carbon development cannot happen without strong support from the capital market, which also presents long-term investment opportunities. In recent years, there has been a significant increase in green-related financing. In 2021, green loans and bonds grew by around 30 percent, and the stock of green financing exceeded 17 trillion yuan.