China’s Communist Party’s annual conclave will be held from October 20 to 23 in Beijing and it could be a major driver for markets. The dates were announced earlier this week and now the speculation begins.
One rumor is that they will unveil a behemoth of a spending plan on AI in a move that could be constructive for Chinese tech stocks, Nvidia and commodity names.
The Politburo has already reviewed a draft of the plan but it will go to the central committee this month before going to the National People’s Congress in March for final approval.
President Xi Jinping said the next phase should balance development, security and “a comprehensive assessment of domestic and external
risks and challenges,” according to Xinhua.
The Politburo has been vague but pledged to grow the economy by developing so-called “new productive forces” including technology, reform and opening up the economy. A Bloomberg report said there would be an updated version of “Made in China 2025” focusing on high-value technology.
The biggest macro impact in the longer term might be more of a shift to a consumption-driven economy, something that China has struggled with and something the US has urged. A risk would be hints at deleveraging amid high local government debt.
