Bullish Standard Chartered to continue investing in China amid strengthening economic recovery

Standard Chartered, one of Hong Kong's currency-issuing banks, has expressed confidence in China's economic stability, prompting further investment in the country. Jerry Zhang, the CEO of the bank's China operations, stated that the third-quarter economic data indicates a strengthening of business and commercial activities in China. He made these remarks during a media briefing at the China International Import Expo (CIIE) in Shanghai, reiterating the bank's commitment to investing in China.

The International Monetary Fund (IMF) recently revised its forecast for mainland China's gross domestic product (GDP), predicting a 5. 4% expansion in 2023, up from the previous estimate of 5%. This revision follows Beijing's decision to issue 1 trillion yuan (US$137. 3 billion) in sovereign bonds, allowing local governments to front-load a portion of their 2024 bond quotas.

For the quarter ending in September, China's GDP grew by 4. 9% year on year and 1. 3% quarter on quarter, which Zhang described as encouraging signs of the economy's resilience. Despite the challenges faced by China's economy, Standard Chartered maintained a positive outlook for its mid- and long-term prospects. The bank announced in February 2022 that it would invest an additional US$300 million by 2024 to bolster its mainland operations, including the expansion of its retail banking outlets and the digitalisation of its operations.