• RankiaPro Europe
    • RankiaPro Spain
    • RankiaPro LATAM
    • RankiaPro Italy
SUBSCRIBE
Search
Close
  • Home
  • Insights
    EQUITIES
    EQUITIES
    FIXED INCOME
    FIXED INCOME
    ESG
    ESG
    INTERVIEWS
    INTERVIEWS
    MARKET OUTLOOK
    MARKET OUTLOOK
    ETF
    ETF

    Featured

    outside allianz GI
    Insights

    China Briefing

  • News
    APPOINTMENTS
    APPOINTMENTS
    LAUNCHES
    LAUNCHES
    ASSET MANAGERS
    ASSET MANAGERS

    FEATURED

    rankiapro-blackrock-lanza-nuevo-fondo-ucits-asignacion-global-sostenible-europa
    Launches

    BlackRock launches new Sustainable Global Allocation UCITS Fund in Europe

  • Magazine
  • Events
    RANKIA FUNDS EXPERIENCE
    EVENTS & CONFERENCE CALLS
    EVENTS & CONFERENCE CALLS
    RANKIAPRO MEETINGS
    RANKIAPRO MEETINGS
  • Podcast
  • MiFIDII Training
Menu
  • Home
  • Insights
    EQUITIES
    EQUITIES
    FIXED INCOME
    FIXED INCOME
    ESG
    ESG
    INTERVIEWS
    INTERVIEWS
    MARKET OUTLOOK
    MARKET OUTLOOK
    ETF
    ETF

    Featured

    outside allianz GI
    Insights

    China Briefing

  • News
    APPOINTMENTS
    APPOINTMENTS
    LAUNCHES
    LAUNCHES
    ASSET MANAGERS
    ASSET MANAGERS

    FEATURED

    rankiapro-blackrock-lanza-nuevo-fondo-ucits-asignacion-global-sostenible-europa
    Launches

    BlackRock launches new Sustainable Global Allocation UCITS Fund in Europe

  • Magazine
  • Events
    RANKIA FUNDS EXPERIENCE
    EVENTS & CONFERENCE CALLS
    EVENTS & CONFERENCE CALLS
    RANKIAPRO MEETINGS
    RANKIAPRO MEETINGS
  • Podcast
  • MiFIDII Training
Search
Close
Search
Close

Home | China Briefing

China Briefing

Allianz Global Investors' analysis of the latest thoughts from the Chinese Communist Party Congress.
Carla Solera

Investor Relation Specialist

2022/10/25

The market reaction to the conclusion of China’s Party Congress is telling. The Hang Seng China  Enterprises Index (a gauge of key China stocks listed in Hong Kong) fell more than 7% on the first day  of trading after the Congress. The CSI 300 (onshore China’s equivalent of the S&P 500) as well as the  broader Shanghai and Shenzhen stock exchanges saw a far more muted reaction.

These moves reflect a significant difference of opinion regarding China’s new leadership team. Within mainland China, there is a view that going forward policy implementation will become more efficient and executed with less friction as personnel issues related to political roles have been settled. 

In addition, while the apparent new number two in the government, Li Qiang, has recently been in the  headlines due to his handling of the Shanghai lockdown, he previously had a reputation of being a  more pro-market politician. For example, he oversaw the establishment of the technology-based STAR  market, and also the construction of the Tesla factory in Shanghai, which took just 10 months.  

In contrast, offshore markets have moved to price in a higher risk premium, especially given the  greater concentration of power. 

To summarise the key personnel changes – at the top of the political tree is the Politburo Standing  Committee (PSC) consisting of seven people. There are four new appointees. And the next level down  is the Politburo consisting of 24 people (including the PSC), where there are 15 new members.  

The turnover levels are consistent with previous cycles, although clearly most of the PSC and Politburo members have worked with Xi Jinping closely in previous parts of their careers.  

The list of the wider Central Committee also points to a reshuffle of Beijing’s economic policy  leadership. Liu He, who previously headed the economic finance team, as well as the banking  regulator and the PBoC governor will retire from government roles at the National People’s Congress  next March. 

During the Party Congress there were no major policy announcements. The lack of policy detail was  not surprising as the Congress is about long-term targets and strategy, not about short-term policy  adjustments.

In Xi’s opening speech, he reiterated that “development is the top priority for the Party” and included  the target that, in 2035, China’s GDP per capita would reach that of a “medium-level developed  country”. Although the growth threshold was not specified, from Xi’s previous speeches this is likely to  approximate to a doubling of GDP per capita from 2020, which would require average annual growth  of 4.7% in 2021-2035.

The word “development” has a number of different aspects. For example, it includes prioritising  sustainability of growth as well as the actual growth rate. As such, national security, technology  development and the green transition were central themes in the speech. A notable phrase was  “Chinese people must hold their rice bowls firmly in their own hands”, signaling the importance of food  self-sufficiency and security. 

For the foreseeable future, we expect a continuation of the trend towards a more policy-driven  environment with a focus on increasing domestic consumption and upgrading the manufacturing  sector to sustain future growth. 

Looking ahead, the next Politburo meeting and the Central Economic Work Conference will be held in  December and will set out more details regarding policy direction. These will be important in helping  to rebuild confidence in the macro outlook, which remains a key driver of markets.  

  • Allianz Global Investors, China

Related Post

COVER-China Covidjpg

China: Covid outbreaks and real estate, the main menaces

COVER-China-reopening

Beyond reopening: China’s transformation

COVER-Hong Kong

How do the markets react to the China-Hong Kong border reopening?

NEWSLETTER
If you want to keep up to date with the latest news from the asset management industry and all our events, subscribe now to our newsletter.
Subscribe

Last Tweets

6h

💟 Funds investing in the fight against cancer: investing in oncology companies

🔗#WordlCancerDay #CancerAwareness
... #RankiaProEurope
https://rankiapro.com/en/funds-investing-fight-against-cancer-investing-oncology-companies/

2 Feb

🗣️ Fed moves away from big hikes: raises interest rates by 25 basis points

🔗 #Fed #InterestRates
...#RankiaProEurope
https://rankiapro.com/en/fed-moves-away-from-big-hikes-raises-interest-rates-by-25-basis-points/

2 Feb

🗣️ECB raises rates by 50 basis points and warns of further increases this year

🔗#ECB #Inflation #rates
...#RankiaProEurope
https://rankiapro.com/en/ecb-raises-rates-50-basis-points-warns-further-increases-this-year/

2 Feb

🗣️ @UBP_Group partners with Brigade to widen its liquid alternative offering

🔗#FundLaunch #LiquidAlternatives
... #RankiaProEurope
https://rankiapro.com/en/ubp-partners-brigade-widen-liquid-alternative-offering/

RankiaPro

  • Home
  • Insights
  • News
  • Magazine
  • Events
  • About us
Menu
  • Home
  • Insights
  • News
  • Magazine
  • Events
  • About us

Terms and uses

  • Cookies Policy
  • Privacy Policy
  • Disclaimer
Menu
  • Cookies Policy
  • Privacy Policy
  • Disclaimer

Contact

  • [email protected]
  • (+34) 963 386 976
  • (+34) 640 308 023

Newsletter

If you want to keep up to date with the latest news from the asset management industry and all our events, subscribe now.

Subscribe

All rights reserved © 2003 – 2023 Rankia S.L.

RankiaPro

  • Home
  • Insights
  • News
  • Magazine
  • Events
  • About us
Menu
  • Home
  • Insights
  • News
  • Magazine
  • Events
  • About us

Terms and uses

  • Cookies Policy
  • Privacy Policy
  • Disclaimer
Menu
  • Cookies Policy
  • Privacy Policy
  • Disclaimer

Contact

  • Email: [email protected]
  • Phone: 963 386 976 – 601 302 692

All rights reserved © 2003 – 2023 Rankia S.L.

Manage Cookie Consent
To provide you the best experience on our website, we use technologies like our own and third-party cookies for analytical purposes and to store device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique identifiers on this site. Not consenting or withdrawing consent may adversely affect certain features and functions.

To learn more, please read our Cookie Policy and Privacy Statement.
Functionality or Personalisation Cookies Always active
These cookies are necessary for the website to function or for the unique purpose of transmitting a communication over an electronic communications network, and cannot be disabled on our systems. Usually they are set up to respond to actions made by you to receive services, such as adjusting your privacy preferences or filling out forms. You can set your browser to block or alert you to the presence of these cookies, but some parts of the website will not work. These cookies allow the website to provide better functionality and personalisation. They may be set by us or by third parties whose services we have added to our pages. If you do not allow these cookies some of our services will not work properly.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics Cookies
These cookies allow us to count traffic sources in order to measure and improve the performance of our website. Storage or technical access which is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing Cookies
These cookies may be site-wide, placed by our advertising partners. These third parties may use them to create a profile of your interests and show you relevant adverts on other sites. If you do not allow these cookies, you may receive less targeted advertising.
Manage options Manage services Manage vendors Read more about these purposes
Cookie Settings
{title} {title} {title}
  • RankiaPro Europe
    • RankiaPro Spain
    • RankiaPro LATAM
    • RankiaPro Italy
Menu
  • Home
  • Insights
    • Equities
    • ESG
    • ETF
    • Fixed Income
    • Interviews
    • Market Outlook
  • News
    • Appointments
    • Asset Managers
    • Launches
  • Magazine
  • Events
    • Events & Conference calls
    • Rankia Funds Experience
    • RankiaPro Meetings
  • Podcast
  • MIFIDII Training

Follow us on social media

Linkedin Twitter Youtube Flickr

NEWSLETTER

Subscribe

Book now

China Briefing