CBN丨China confident on growth in 2023, vice-premier told Davos forum

Hi everyone. I’m Stephanie LI.

大家好，我是主持人李莹亮。

Coming up on today’s program.

重点提要 

• Chinese Vice-Premier said China’s economy will get back on track this year in Davos forum;

• China's FDI inflow rose 6.3% in 2022.

Here’s what you need to know about China in the past 24 hours 

中国经济要闻

Chinese Vice-Premier Liu He said on Tuesday that China is confident growth will likely return to its normal trend this year, while reiterating China's determination in promoting an all-round opening-up and multilateral cooperation. 

Delivering a speech to the World Economic Forum's annual meeting in Davos, Switzerland, Liu said that China achieved a GDP growth of 3 percent in 2022 and maintained stability in prices and employment despite challenges. With various efforts, China is confident that the economy will see an overall improvement in 2023 with GDP growth returning to normal trend.

That confidence is also shared by many global business leaders and economists at the Davos meeting. "The reopening of China has to be the major event and it will be a key driver for growth," Laura Cha, chair of the HKEX, said at the panel on Tuesday.

During his speech, Liu said China will strive to maintain reasonable economic growth and keep prices and jobs stable in 2023, adding that more focus will be placed on expanding domestic demand, keeping supply chains stable, supporting the private sector, reforming the State-owned enterprises, attracting foreign investment and preventing economic and financial risks.

The vice-premier stressed that China will continue to promote all-around opening-up. He said China would stick to its socialist market economy and remain open to foreign businesses, adding that it would never return to a planned economy.

Liu also addressed issues relating to China's real estate sector, which he said is still a pillar for the nation's economy and accounts for nearly 40 percent of bank lending, 50 percent of overall local government fiscal resources and 60 percent of urban household assets. Starting in the second half of 2021, China experienced a rapid decline in property prices and home sales. Since then, Liu said with a "blood transfusion" to the property industry, supply and demand in the market have seen noticeable improvements.

In regard to climate change, Liu reiterated that "China will honor its commitments to the international community, push for global cooperation on climate change, work with other countries to tackle the serious challenges posed by climate change and build a community with a shared future for mankind".

Liu also mentioned Beijing's recent optimization of its COVID-19 policy, saying the overall situation in China was steady. He added that 5 billion trips are expected to be made during the Chinese New Year holiday starting on Saturday.

1月17日，国务院副总理刘鹤出席达沃斯世界经济论坛2023年年会并发表致辞。

刘鹤介绍了中国经济的情况、中国防范化解金融风险特别是房地产业相关风险的情况、中国促进经济双循环的考虑、中国推动共同富裕的考虑。

刘鹤表示，我们在不久前召开了中国的年度中央经济工作会议，对2023年经济工作作出部署。从2022年情况看，中国经济增长3%，保持了就业稳定、物价稳定，城镇调查失业率5.6%，居民消费价格指数2%，经常项目顺差占GDP比重略高于2%。

2023年，我们将坚持稳中求进工作总基调，继续实施积极的财政政策和稳健的货币政策，努力保持合理的经济增长，保持物价和就业总体稳定。我们要着力扩大国内需求，推动产业链供应链循环畅通，支持民营经济健康发展，深化国有企业改革，欢迎更多外资来华，防范化解经济金融风险。我们相信，经过努力，2023年中国经济将实现整体性好转，增速达到正常水平是大概率事件，预计今年进口会明显增加，企业会加大投资力度，居民消费会回归常态。

刘鹤表示，回顾过去十年，中国GDP从54万亿元增加到121万亿元，人均预期寿命从74.8岁提高到78.2岁，对世界经济增长的贡献率达到36%左右。能够取得这样的成绩，至少有五点经验：第一，必须坚持发展是第一要务，坚持以经济建设为中心。第二，必须坚持社会主义市场经济改革方向。有的人说中国要搞计划经济，这是绝对不可能的。第三，必须坚持全方位扩大对外开放。对外开放是中国的基本国策，开放是促进改革和发展、推动中国经济进步的重要动力，中国的大门只会越开越大。第四，必须坚持依法治国。第五，必须坚持创新驱动发展。这些经验是我们从改革开放以来一直奉行的重要做法，必须长期坚持，毫不动摇。

关于房地产业，刘鹤表示，房地产业是中国国民经济的支柱产业。2021年下半年以来，中国房地产市场出现价格和销售急剧下降现象，房地产企业普遍出现流动性不畅、资产负债表恶化，个别头部企业面临重大风险。我们认为，房地产领域风险如果处置不当，很容易引发系统性风险，必须及时干预，但要注意处理好系统性风险和道德风险的关系。

有关当前疫情防控形势，刘鹤表示，我们从全面的动态清零的防疫政策，转向治疗重症的防疫政策。转型总体平稳顺利，经过一段高感染，现在大部分社会成员已经恢复了正常状态，达峰的时间和恢复正常的时间比较快，从某种意义上超出了我们的预期。他还说，“最近我去考察得到的数据非常吃惊，今年春节期间将有50亿人次的游客要探亲访友，这个数字非常大，已经全面恢复了正常。”

• Foreign direct investment (FDI) in the Chinese mainland, in actual use, expanded 6.3 percent year on year to 1.23 trillion yuan in 2022, the Ministry of Commerce said Wednesday. South Korea, Germany and the UK are the top three investors, of which the FDI increased by 64.2 percent, 52.9 percent and 40.7 percent respectively, data showed. The manufacturing industry saw FDI inflow increase by 46.1 percent year on year to 323.7 billion yuan in 2022, while that of hi-tech industries jumped by 28.3 percent compared with 2021.

  2022年中国实际使用外资同比增6.3%：中国商务部18日公布的最新数据显示，2022年中国实际使用外资金额12326.8亿元(人民币，下同)，按可比口径同比增长6.3%，规模再创历史新高。分领域看，制造业外资流入较快。据官方数据，2022年中国制造业实际使用外资3237亿元，同比增速高达46.1%。高技术产业实际使用外资增长28.3%，占全国比重为36.1%，较2021年提升7.1个百分点。分来源看，主要来源地对华投资普遍增长。2022年，欧盟对华投资额同比大增92.2%，其中德国对华投资增长52.9%。“一带一路”沿线国家、东盟对华投资分别增长17.2%和8.2%。

Greater Bay Area, Greater future

新使命，大未来

• The cap on tickets for the high-speed rail link between Hong Kong and the mainland rise by 6,000 to 20,000 per day from Wednesday, the second increase in the quota this week, the SAR government announced Tuesday. Meanwhile, the city’s education bureau said on Wednesday that the administration is striving to let thousands of cross-border students return to face-to-face learning in Hong Kong next month without being restricted by a quota, and it is studying the possibility to allow these traveling pupils to undergo rapid antigen tests instead of PCR screening. 

  广深港高铁香港段每日双向车票增至2万张：香港特区政府运输及物流局宣布，1月18日起，广深港高铁香港段每日双向车票由目前14000张增加至20000张。香港特区行政长官李家超表示，已要求相关团队做足准备，应付未来增加的乘客量，并继续确保西九龙口岸运作畅顺。此外，18日香港特区政府教育局宣布，将争取2月1日恢复跨境学童面授课堂。教育局正研究为跨境学童设置豁免安排，考虑以快速抗原测试代替核酸检测，以及让学童返回内地时无须填写健康申报。

Next on industry and company news

产业及公司新闻

• China has completed the centralized drug procurement of 2022, with 111 drugs being added and 3 removed, according to the National Medical Insurance Administration on Wednesday. Out of the 147 medical products that joined the negotiation, 121 made it in the bulk-buying list, with an average price reduction of 60 percent. After the latest adjustment, a total of 2967 drugs will be covered by the national medical insurance, reducing financial burden on patients by more than 90 billion yuan in the next two years. Genuine Biotech’s oral Covid treatments, Azvudine, has officially been included in the national insurance plan at 175 yuan per bottle, a price cut of around 35 percent.

  2022年医保谈判药品平均降价超6成：1月18日，据2022年国家医保药品目录调整新闻发布会介绍，2022年国家基本医疗保险、工伤保险和生育保险药品目录调整工作现已顺利结束。本次调整，共有111个药品新增进入目录，3个药品被调出目录。从谈判和竞价情况看，147个目录外药品参与谈判和竞价，121个药品谈判或竞价成功，总体成功率达82.3%，创历年新高。谈判和竞价新准入的药品，价格平均降幅达60.1%。本轮调整后，国家医保药品目录内药品总数达到2967种，预计未来两年将为患者减负超过900亿元。此外，国家医保局18日公布的2022年国家医保目录调整结果显示，阿兹夫定3mg规格降价约35%，以11.58元/片的价格谈判成功，意味着原先一瓶35片（1mg规格）的阿兹夫定将从270元/瓶的医保支付价格降至175元/瓶左右。

• China will speed up the construction of 1,400 major projects confirmed under the central enterprises' 14th Five-Year Plan (2021-25), according to a spokesperson of the State-owned Assets Supervision and Administration Commission of the State Council on Tuesday. These projects include the second phase of Deep Sea No.1, China's independently developed, ultra deep-water gas field of China National Offshore Oil Corp, and a nuclear power project in Guangxi province.

  央企1400项重大项目建设提速：1月17日，国资委新闻发言人彭华岗在国新办新闻发布会上表示，下一步将聚焦国家重大项目。加强规划牵引和动态监测，推动企业优先做好涉及国家“十四五”102个重大工程实施，加快推进中央企业“十四五”规划确定的1400项重大投资项目建设进度，其中包括中国海油深海一号二期工程、国家电投防城港核电项目、多家电网电力企业参与风光大基地项目等，力争能够形成更多的实物工作量。 

• Shanghai Junshi Biosciences has filed for its orally taken Covid-19 treatment to go to market in China after the medicine proved as effective as US pharma giant Pfizer’s Covid-19 tablet in clinical trials, with fewer reported side effects, the Chinese drug developer said today. Clinical trials have shown Junshi’s VV116 tablet to have a significant effect against the original and variant strains of the virus, including omicron.

  君实生物新冠口服药上市申请获受理：1月18日早间，上海君实生物医药科技股份有限公司发布公告称，由公司控股子公司上海君拓生物医药科技有限公司与苏州旺山旺水生物医药有限公司合作开发的口服核苷类抗新型冠状病毒药物氢溴酸氘瑞米德韦片“VV116”的上市申请获得受理。临床前研究显示，VV116对包括奥密克戎在内的新冠病毒原始株和突变株表现出显著的抗病毒作用，且无遗传毒性。

• NetEase Inc. struck back in an escalating public dispute with U.S. gaming giant Blizzard, accusing its longtime partner of being “rude and inappropriate” when negotiating to keep World of Warcraft on PCs in China. NetEase was responding to a post Tuesday in which Blizzard said NetEase had rejected its offer to extend their licensing agreement another six months while they work out new terms, effectively ending the distribution of most of its games on the mainland from next week. “Blizzard’s proposal, including its statement today, is rude, inappropriate and not in line with business logic,” the Chinese gaming giant said late Tuesday. 

  网易深夜怒斥暴雪：1月17日，暴雪中国官方微博发文称，上周再次与网易接触并寻求协助，以探讨将现有的、基于网易于2019年已同意既定条款的协议，顺延六个月。但网易并未在上周的顺延谈判后，接受其关于顺延现有游戏服务协议的提议。因此暴雪将于1月23日中止国服游戏服务。随后，17日晚间，网易在官微发布声明称，我方认为，暴雪的这种提议——包括今天突发的声明——是蛮横的、不得体的且不符合商业逻辑的。其过分的自信中并未考虑这种予取予求、骑驴找马的行为，将玩家和网易置于了何地。

• Chinese education technology firm Koolearn swung into the black in the first half of its fiscal 2023. Net profit was 585 million yuan in the six months ended Nov. 30, versus a net loss of 544 million yuan a year earlier, according to Koolearn's financial report released yesterday. Revenue soared 263 percent to 2.1 billion yuan, mainly driven by major progress in the firm's strategic shift to self-operated products and e-commerce live-streaming from online education. Revenue from Oriental Select, Koolearn's live-streaming studio, accounted for 85 percent of the total.

  东方甄选为新东方在线贡献85%营收：1月17日，新东方在线发布截至2022年11月30日止6个月业绩，期内营收20.8亿元，同比增加262.7%；期内净利增加207.6%至5.85亿元，扭亏为盈，去年同期亏损5.44亿元。公告称，公司于报告期间的快速增长乃由于公司从专注于线上教育向自营产品及直播电商的战略转型取得重大进展。期内，以“东方甄选”所代表的“自营产品及直播电商分部”总营收为人民币17.658亿元，占总营收近85%。

Switching gears to financial news

金融市场消息

• China announced on Tuesday that two capital market-related preferential policies on individual income tax will be extended for another year to help firms cultivate talent and open up the Chinese mainland market. Incentives of equity will continue to be taxed separately, thereby reducing the marginal tax rate, according to the Ministry of Finance. Also, investment income earned by individual Chinese mainland residents investing in stocks and funds traded in Hong Kong through the Stock Connect program will continue to be exempted from income tax this year.

  两项个税减税政策将延续至年底：1月17日，财政部等发布《关于延续实施有关个人所得税优惠政策的公告》，延续了两项个税优惠政策：一项是去年底到期的上市公司股权激励单独计税优惠政策延续至今年底，另一项是沪港、深港股票市场交易互联互通机制和内地与香港基金互认有关个税优惠政策延续至今年底。

• China Construction Bank’s CCB Housing Leasing Fund and property developer China Vanke have jointly established a 10 billion yuan rental housing investment fund, to invest in first- and second-tier cities with large rental demand, prioritizing Vanke’s long-term rental apartment assets. CCB Housing Leasing Fund invested about 8 billion yuan and Vanke the rest. The pair may raise up to 3 billion yuan from the social capital market later on.

  万科与建行成立百亿住房租赁基金：1月17日，建设银行旗下建信住房租赁基金与万科集团联合创立的“建万住房租赁投资基金”，在京举行揭牌仪式。据悉，本次基金规模高达100亿元，其中建信租赁住房基金（母基金）认缴出资约80亿元，万科认缴出资约20亿元，后续可能开放不超过30亿元的额度向社会资本进行市场化募集，带动各方资金共同提高房企资产流动性。基金将投向经济发展好、人口净流入、租赁需求及支付能力较高的一二线城市，优先收购万科集团的长租公寓资产，并兼顾市场化优质项目的收购。

Wrapping up with a quick look at the stock market

股市收盘情况

• Chinese stocks ended on the front food on Wednesday in a day of flat tradings. The benchmark Shanghai Composite closed nearly flat, while the Shenzhen Component inched up 0.09 percent. Hong Kong’s Hang Seng index added 0.47 percent and the TECH index gained 0.54 percent.

  A股、港股微涨：周三A股全天震荡整理，盘面热点较为匮乏。截至收盘，沪指涨0.01%，深成指涨0.09%，创业板指跌0.06%。沪深两市全天成交额6357亿元。港股恒指震荡收涨0.47%，恒生科技指数收涨0.54%。

Biz Word of the Day

财经词汇划重点

• Equity incentive plans allow companies to conserve cash by offering lower salaries in exchange for equity. While workers still get a monthly salary, they may accept less pay than usual because they recognize the value of having equity in the company instead.

  股权激励，也称为期权激励，是企业为了激励和留住核心人才而推行的一种长期激励机制，是最常用的激励员工的方法之一。股权激励主要是通过附条件给予员工部分股东权益，使其具有主人翁意识，从而与企业形成利益共同体，促进企业与员工共同成长，从而帮助企业实现稳定发展的长期目标。

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI 

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC

编委:  于晓娜

策划、编辑：李艳霞 

播音：李莹亮

撰稿：李莹亮

音频制作：李莹亮

设计：郑文静、廖苑妮

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