A Trader’s Guide on What to Watch at China’s Policy Meeting

China’s equity investors will be watching for trading cues from policy priorities and signals about fiscal stimulus at a meeting of the country’s top officials next week.

The annual gathering of the National People’s Congress, where the ruling Communist Party makes economic and policy announcements, is scheduled to kick off on Tuesday.

Areas of investor focus will include fiscal stimulus, efforts to bolster the real estate sector or consumer demand, and regulatory treatment of companies or sectors. The meeting comes as the world’s second-largest stock market shows signs of bottoming out after years of declines, with the CSI 300 now positive in 2024 after a strong rally this past month.

“The A-share market typically performed positively during the two sessions based on data since 2000,” China International Capital Corp. analysts including Li Qiusuo wrote in a note referring to the NPC and the advisory Chinese People’s Political Consultative Conference. “The market rebound since early February is expected to continue,” they said, citing low valuations and policy support.

Chinese Equities Tend to Rise After NPC Meeting