China’s GDP grew by 3.9% in the third quarter compared to the same period last year, Reuters writes with reference to the data published by Beijing. The Chinese economy is recovering faster than expected: economists surveyed by the agency forecasted GDP growth in July-September by 3.4%. In the second quarter of 2022, the Chinese economy grew by only 0.4%.

The publication of data on the state of the Chinese economy was originally scheduled for October 18, but was postponed due to the Chinese Communist Party Congress last week, the agency notes.

Although China’s third-quarter GDP growth was better than forecast, a more sustainable long-term economic recovery is hampered by ongoing constraints due to COVID-19 outbreaks, a prolonged downturn in the real estate market and risks of a global recession. China’s plans to continue its zero-tolerance COVID-19 policy, endorsed by the ruling Communist Party, are adding to investor concerns.

Shares of Chinese companies in Hong Kong fell to a 13-year low and the yuan fell to its weakest level in 15 years, the agency said.

“The market is concerned that after electing so many supporters, Xi Jinping has the unfettered ability to pursue policies that will not be in the market’s interest,” said Justin Tang, head of Asia research at United First Partners.

The securities of tech giants Alibaba, Tencent and Meituan also collapsed as investors remain unconvinced that Xi and his supporters will be able to rebuild China’s private enterprise sector.