Policy measures help restore confidence in country's market

The total profit of China's industrial enterprises above designated size was 5.24 trillion yuan ($734.34 billion) in the first nine months of this year, up 575.43 billion yuan over that of the first eight months.

However, because of insufficient effective demand, falling prices of industrial products and significantly higher base in a certain period of the previous year, the value was down 3.5 percent year-on-year, as data from the National Bureau of Statistics show.

Although the profit of industrial enterprises has declined to a certain extent, driven by the rapid growth of production, the profit of the high-tech manufacturing sector increased by 6.3 percent year-on-year from January to September, 9.8 percentage points higher than the average profit of industrial enterprises above designated size, driving an industrial profit growth of 1.1 percent. That highlights the resilience of China's industrial economic development.

Despite a declining profit of industrial enterprises in the first nine months, the resilience of China's new industrial drivers has further intensified, and with the expected stabilization of industrial enterprises and increased confidence, the profit of industrial enterprises is expected to recover and grow. A top-level meeting held in late September said that the country will better implement the policies already adopted, accelerate the introduction of incremental policies, and further improve the accuracy and effectiveness of policy measures.

China's GDP in the first three quarters increased by 4.8 percent year-on-year at constant prices, as showed by data released on Oct 18, indicating that the Chinese economy is generally stable and making steady progress.

Given that China's external pressures have increased because of the complex global environment and that its domestic economy is in a critical period of structural transformation, it is normal for China's economic growth to fluctuate slightly, but it has withstood various kinds of pressures, and its overall economic dynamics and momentum have not changed.

More important, China's economy is gaining added momentum for new progress, in which the cultivation of new quality productive forces has accelerated.

In response to the new situation and new problems, the central authorities have decisively introduced a package of policies focused on increasing countercyclical policy regulation, expanding domestic demand, giving more help to enterprises, promoting the recovery of the real estate market, and boosting the capital market.

The central authorities will continue to introduce incremental policy measures to further stabilize expectations and boost market confidence, which will provide a good business environment for the development of industrial enterprises and help them enhance their profitability.