Automated cranes deliver containers at the Qinzhou Port in Qinzhou, South China's Guangxi Zhuang autonomous region, in February 2023.
Cooperation in policy support is seen as crucial for ensuring that recovery is sustainable.
The economy of China is expected to grow faster in the foreseeable future, with a series of stimulus measures taking effect gradually, demonstrating strong resilience and vitality amid downturns, according to economists and global executives.
Despite signs of stabilization, China's economy still faces multiple obstacles, such as insufficient demand, weak exports, low confidence in the private sector, and stress in the property sector. This calls for coordinated fiscal and monetary policy support to boost the world's second-largest economy.
Robin Xing, Morgan Stanley's chief China economist, said that the economy has bottomed out, with the latest economic indicators showing better-than-expected results.
The National Bureau of Statistics data shows the official snapshot of fresh signs pointing to a steady economic recovery. Both China's official manufacturing and nonmanufacturing purchasing managers indexes rose to 50.2 and 51.7, respectively, from 49.7 and 51 in August. The numbers were higher than the 50-point mark that separates contraction from growth.
China's chief economist, Lu Ting, said better-than-expected September PMI data could be good for market sentiment in the short run, and some August data have already shown signs of stabilization.
China's factory activity is returning to expansion as the economy improves.
Investors and analysts have commended China's pro-growth stance and the fresh signs of a steady recovery. The outlook for China's growth prospects for 2023 has beenpruced up by some economists and banks.
Nomura recently raised its forecast for GDP growth to 4.1 percent year-on-year and 4.3 percent, respectively, from 3.7 percent and 4 percent, and accordingly its full-year 2023 GDP growth forecast increases to 4.8 percent from 4.6 percent.
Oxford Economics has remained its growth forecast for 2023 at 5.1 percent, ahead of China's annual growth target of around 5 percent this year.
Loo said she expects a third round of cuts, of 10 basis points, across the key policy rates this year, alongside another 25-basis cut to the reserve requirement ratio at the end of the quarter in December.
The People's Bank of China, China's central bank, announced the second cut to the reserve requirement ratio by 0.25 percentage point in September, following a cut in March.
Despite the challenges and uncertainties surrounding China's economy, global leaders expressed confidence in the market's prospects, reaffirming investment engagement in the China market.
The Chinese economy will continue to go forward in the direction of high-quality development, he said.
Sean Shan, senior vice-president of pharmaceutical companyTakeda and president of China, said China is a strategically important market for Takeda.
He said innovation will lead to the high-quality development of the healthcare sector in China that is fully in line with Takeda's plan to make China the world's second-largest market by 2030.
Dong Minsheng, CEO of drug company Menarini China, said the economy has been improving since the beginning of this year. The long-term positive fundamentals remain consistent, and the commitment of Menarini to China remains consistent.