- Key appointments to the Politburo Standing Committee has been announced
- Investors will remain watchful over macro policy directions, even as China continues to open up
- While we await clarity on policy directions, we remain positive on domestic-oriented sectors
The Party Congress also announced key appointments to the Politburo Standing Committee, the ultimate decision-making body. Detailed policy announcements, typically made at the annual National People’s Congress (NPC) assembly (with the next one slated for March 2023), is expected to remain supportive of long-term growth with an emphasis on quality and resilience.
While the government had emphasised how China would open its door wider to the rest of the world, there remained an absence of clarity on policy going forward.
The new leadership team now has the daunting task of juggling a slowing domestic economy, Covid measures, and an increasingly tense bilateral relationship with the United States.
We expect more concrete policies and bottom-up implementation plans to be announced at and post the annual National People’s Congress in March next year. Here, in a bid to prevent the world’s second largest economy from entering a period of prolonged slowdown, the government could adjust policies to focus on reviving domestic consumption and stabilising confidence in the corporate sector and general public.
While we recommend avoiding dollar-cost averaging down at the current juncture until better policy clarity is seen, we maintain our stance on domestic oriented sectors which derive their revenue locally.
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