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China’s National People’s Congress (NPC) has seen the announcement of a new 2024 growth target and discussion on how a “proactive” fiscal stance and “prudent” monetary policy can help the economy.

 

Investors need to understand how Beijing plans to develop new growth drivers such as domestic demand, innovation, digitalisation and the green transition of the economy.

 

This new special report examines our views on Chinese equities in this policy context, and why we continue to favour consumer discretionary, technology and green energy sectors.

 

Key takeaways:

  • Premier Li Qiang acknowledged that achieving the growth target of "around 5%" this year will require a "proactive" fiscal stance and "prudent" monetary policy, as well as "joint efforts from all fronts".
  • Beijing’s focus remains on developing and supporting new growth drivers such as domestic demand, innovation, digitalisation and the green transition of the economy.
  • While restoring confidence will take time, the pace and effectiveness of policy implementation will be key to meeting Beijing's call for stability.
  • We continue to favour consumer discretionary, technology and green energy sectors in Chinese equities.

 

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The CIO Special below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

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