China’s economy still have many engines for development

China’s economy still has many engines for development, such as emerging industries and supply-side reform, experts say.

This is the view of Gan Jie, professor of finance and director of the Center for Finance and Economic Growth at Cheung Kong Graduate School of Business.

Themed 2017 Outlook: What Surprises Are in Store for China?, the school’s 3rd China Economic Symposium was held in Beijing and Gan released a report on China’s industrial economy in the third quarter on Wednesday.

Although the GDP figure for the third quarter was quite good, China’s industrial economy has not yet been stable, with only 8 percent of companies investing in fixed assets and 2 percent of companies investing for expansion, the report said.

However, production of consumer goods has been increasing, contributing more to the stability of the economy. Overcapacity is still one of the main challenges to economic development. The upgrading of industries and economic reforms are still key for the long-term development of economy, the report said.

Gan said there are many sectors in China’s economy that could be improved and realize long-term growth, such as the high-tech industries.

Raphael Lam, resident representative of the IMF Resident Representative office in China, said there is still great potential economic growth on China, as reforms in such areas as State-owned enterprises and supply-side will help it toward long-term health.

Shirley Chen, managing director of the China International Capital Cooperation Ltd, said emerging industries will be the new engine for China’s economic development. These include information technology, biotechnology, new materials, smart manufacturing, mobile internet industry, education, culture and healthcare. She said CICC has already built a fund of 40 billion yuan to invest in these emerging markets.