China’s economic growth target of 5% is “real,” judging from an increase in trucking activity in recent months, according to the chief executive officer of logistics company GLP Pte.

The amount of goods moved by trucking operators has exceeded 2022 levels since August, GLP CEO and co-founder Ming Mei said at the Hong Kong financial summit on Wednesday. While the data has yet to return to its 2021 peak, it has surpassed the 2019 pre-Covid level, he said. 

The International Monetary Fund on Tuesday upgraded its projections for China’s annual economic growth this year and next after the nation recorded a stronger-than-expected performance in the third quarter and Beijing rolled out policies to support the recovery. It now expects China to grow 5.4% this year, more than the government’s goal of about 5%. 

Energy and service sector consumption in China has also been rising, said Mei, whose company has a majority of its logistics assets in the country. “The 5% GDP growth seems real.” 

Mei also said China has been oversold.

“There’s no such thing as high risk or low risk, you can pay for the risk,” he said. “From that standpoint, I’m probably more bullish on China than 99% of the people.”