China’s Economic Targets Draw Scepticism; UK Banks Alerted Over Erroneous Companies House Filings

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China has unveiled its growth target of around 5 percent for the current year, along with a fiscal deficit of 3 percent of its gross domestic product (GDP). Premier Li Qiang announced these objectives during the opening of the annual National People’s Congress on Tuesday, presenting them in his keynote “work report” speech.

Investors are closely watching this year’s meetings, known as the “Two Sessions”, which involve the NPC, China’s rubber-stamp parliament, and its top advisory body, the Chinese People’s Political Consultative Conference. They are eagerly awaiting signals on how the ruling Chinese Communist Party plans to bolster the country’s slowing economy.

The announced targets are in line with last year’s report and analysts’ forecasts. However, many analysts caution that achieving the 5 percent target for 2024 would be more challenging than the 5.2 percent recorded in 2023, given that the country’s economy is starting from a higher base as it continues to recover from the COVID-19 pandemic-induced slowdown.

China’s $18 trillion economy is facing significant headwinds, including deflationary pressures, a property crisis, a stock market downturn, and mounting local government debt. In 2023, foreign direct investment in China dropped by 82 percent to $33 billion, marking the lowest annual figure since 1993.

Premier Li also revealed plans to issue Rmb1 trillion ($139 billion) in ultra-long government bonds for major projects. However, analysts argue that this falls short of the substantial stimulus package needed to boost markets and reassure concerned investors.