Spotlight: China

President Xi Jinping used the 19th Communist Party Congress (CPC) to consolidate his position and introduce a broad set of reform proposals. Economic policy is likely to remain pro-growth, but with an increased focus on the quality of growth and measures to curtail excess credit. Reforms will focus on real estate, the corporate sector (state and private) and environmental protection. More forceful regulation of financial services and local government finance is coming too. Chinese technology, financial and consumer discretionary companies should benefit.

Key points

• China’s once-in-five-years conference has ended with a broad range of economic policy proposals and greater powers for President Xi Jinping
• Economic reforms focus on real estate, the corporate sector (state and private) and environmental protection. More forceful regulation of financial services and local government finance is coming too
• A central policy will be a national champions model focused on state-owned enterprises (SOEs)
• President Xi has also embarked on making China’s international standing much greater through the projection of ‘soft power’ outside of Asia Pacific
• Technology, financials and consumer discretionary companies should benefit