China plans to boost key sectors, focusing on digital economy, domestic consumption, and new productive forces.

From CNBC:

China announced plans to support key sectors with a GDP growth target of around 5% and a fiscal deficit of 3%. They will issue “ultra-long” bonds for special projects and focus on nurturing new productive forces, digital economy, and domestic consumption. The market response has been lukewarm, with A shares falling due to lack of policy support. Wu Qing, the new securities regulator, emphasized investor protection and attracting long-term capital. Beijing is pushing for new productive forces to boost industrial capabilities and technology innovation. Chongqing officials highlighted digitalization and high-end manufacturing as key priorities. HSBC analysts recommend buy-rated stocks in Shenzhen related to new productive forces and AI-generated content. They caution that China’s economic problems may persist without stronger fiscal stimulus.



Read more at CNBC: China says it plans to boost these industries. Stocks to play the trend