Xi on defence over economy track

<p>Kia ora,</p><p>Welcome to Wednesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news the Chinese President is having to get involved in shoring up China's faltering economic track.</p><p>In China, their <a href="http://www.stats.gov.cn/sj/zxfb/202310/t20231031_1944037.html" target="_blank"><strong>official factory PMI fell</strong></a> unexpectedly in October back into contraction after the minor expansion in September. Markets weren't expecting that, So China's economic recovery remains fragile with more support measures from the government needed. New orders were the weak issue, returning to contraction.</p><p>And it was <a href="http://www.stats.gov.cn/sj/zxfb/202310/t20231031_1944037.html" target="_blank"><strong>a similar story in their services sector</strong></a>. It did manage to stay in expansion mode but only just after dipping from September. The October result is the weakest of 2023. New orders were particularly weak which is a worry and these are now contracting.</p><p>Meanwhile, President Xi underscored his concerns about China’s shrinking population in a speech calling on women to help bolster the birth rate by promoting a “culture” of childbirth. It also played to his conservative social views.</p><p>He was active at the <a href="https://www.chinadaily.com.cn/a/202310/31/WS6540f0cda31090682a5ebb8d.html" target="_blank"><strong>Central Financial Work Conference</strong></a>, trying to shore up issues related to ballooning local government debt risks. The recent ¥1 tln debt swap program allowing local governments to replace their so-called “hidden” debt for bonds carrying lower interest rates was part of this push. Also part is a new requirement for bankers to study the volumes of books with Xi's Thought.</p><p>In Japan however, yield curve control policies are all the focus. Late yesterday the Bank of Japan <a href="https://www.boj.o