Investors anticipate potential market-oriented reforms and long-term strategies during China's third plenum

From South China Morning Post: 2024-07-05 04:49:15

Investors await China’s third plenum for new market drivers as stock rebound stalls. CSI 300 Index gave back half its gain since February lows. Economic struggles evident as industrial profit growth slows, FDI drops, and manufacturing contracts. Home sales recover in tier-one cities; overall property market subdued. Plenum historically shapes China’s social and economic development. Market hopes for material market-oriented reforms. Reassessing outlook for Chinese stocks as policymakers balance growth and security. Expect long-term strategies rather than detailed economic policies. Plenum seen as opportunity for property destocking and fiscal reforms. Expect market lift from pro-business private sector reforms. Valuation re-rating expected in next six months.



Read more at South China Morning Post: China stocks: Can the third plenum be a game changer as investors seek fresh catalysts?