Beijing should be more forthcoming about China’s economic statistics and release data more often to enhance transparency to reflect the dimensions and diversity of the world’s second-largest economy and address investor concerns, a government adviser has urged.
“For the sake of the stable, long-term development of capital markets, we need richer sources of statistics and information,” said Yang Chengzhang, the chief economist with top brokerage firm Shenwan Hongyuan Securities.
Yang is also a member of the Chinese People’s Political Consultative Conference, China’s top political advisory body.
Comprehensive and up-to-date data could help avoid shocks and guide enterprises to form reasonable expectations of growth, Yang said on the sidelines of the “two sessions” legislative meetings, the Shanghai-based The Paper reported on Monday.
Social, economic risks of China’s youth unemployment remain even as rate returns
Social, economic risks of China’s youth unemployment remain even as rate returns
China is often criticised for withholding the release of some statistics, while mandating state media paint a rosy economic outlook, triggering concerns from foreign investors, economists and business chambers.
In July, the National Bureau of Statistics suspended issuing the youth unemployment rate for the 16 to 24 age group, citing the need to “optimise” data collection and analysis after it had surged to over 20 per cent in June.
A revised gauge returned in January, showing China’s jobless rate for the 16 to 24 age group excluding students stood at 14.9 per cent in December.
Beijing has issued warnings against falsifying data, as China’s economic statistics are heavily scrutinised amid questions over reliability.
Yang, though, called for more unofficial but reliable releases from tertiary and research institutions, industrial associations and the media to supplement and cross-check official data.
He said multifaceted structural data feeds could reflect the new characteristics of China’s economic transition.
“The All-China Federation of Industry and Commerce can make full use of its access to and repository of private sector data for periodical releases to show the sector’s well-being,” added Yang, referring to China’s largest chamber of commerce.
Yang said more micro-level statistics are essential to reveal the operating environment and performance of enterprises of different types and ownership nature, urging a focus on private firms and service sector entities, including monthly incomes, profits, costs, assets and liabilities.
He also called for localised economic data to be gleaned from the northern region of Beijing, Tianjin and Hebei, as well as the Yangtze River Delta and the Greater Bay Area.
Consumption statistics should also present a fuller picture
The data should be made public to reflect the weight and significance of the powerhouse regions to the national economy, he said.
And as Beijing has pinned high hopes on consumption to help achieve this year’s growth target of “around 5 per cent”, Yang said the authorities should release complete and comprehensive data as spending patterns evolve and change.
“In addition to catering services, the scope of service consumption data should be expanded to cover culture and sports, tourism, accommodation and business services,” said Yang.
“Consumption statistics should also present a fuller picture, with additional data like monthly household consumption expenditure and consumer confidence.”
But he also stressed authorities should offer more interpretations of statistics to set the tone and scrutinise data provided by private entities or even posted by social media users to dispel misconceptions.
