The annual Central Economic Work Conference in China is a key indicator of the country's economic policy direction and asset allocation strategy.

The 2024 meeting holds particular significance as it marks a crucial midpoint in the 14th Five-Year Plan and a critical juncture for structural adjustments and growth under new economic conditions. This could signal fresh investment opportunities for Chinese assets.

Politburo meeting sets the tone: Stability with progress

China's Politburo meeting emphasised maintaining a steady yet progressive economic policy approach. It outlined key priorities aimed at achieving a 2025 GDP growth target of approximately 5%.

• Expanding Domestic Demand:

  • Highlighting the importance of demand-side reforms, the meeting prioritised increasing household income and boosting consumption.

  • New policies will support both businesses and households to foster a virtuous cycle of investment and consumption.

• Stabilising the Property Market:

  • Policies aim to support housing demand, particularly for first-time buyers and upgraders.

  • Measures to prevent further market decline and ensure a stable real estate sector will be introduced.

• Strengthening the Stock Market:

  • Initiatives to enhance investor confidence and attract more capital to the market are expected.

  • Capital markets are acknowledged as pivotal to driving economic growth.

• Other Policy Directions:

  • Optimising economic structure with a focus on technological innovation and green development.

  • Expanding foreign trade and investments to stabilise exports and attract foreign capital.

Central Economic Work Conference Summary

The Central Economic Work Conference was held in Beijing from December 11 to 12. General Secretary Xi Jinping attended the meeting and delivered an important speech, summarizing the economic work of 2024, analyzing the current economic situation, and outlining the economic agenda for 2025.

1. Vigorously boost consumption, enhance investment efficiency, and comprehensively expand domestic demand.

2. Drive the development of new productivity through technological innovation and build a modern industrial system.

3. Leverage economic system reforms to implement key reform measures effectively.

4. Expand high-level opening-up, stabilize foreign trade, and attract foreign investment.

5. Effectively prevent and mitigate risks in key areas, ensuring no systemic risks occur.

6. Advance new urbanization and rural revitalization in a coordinated manner, promoting urban-rural integration.

7. Strengthen the implementation of regional strategies to enhance regional development vitality.

8. Promote carbon reduction, pollution control, ecological preservation, and green growth to accelerate the comprehensive green transformation of economic and social development.

9. Intensify efforts to improve livelihood guarantees and enhance people’s sense of fulfillment, happiness, and security.

*Reference：https://www.gov.cn/yaowen/liebiao/202412/content_6992258.htm

Potential investment opportunities in Chinese assets

1. Domestic Consumption and Livelihood:

2. AI + New Productivity:

3. Digital Trade:

4. Green Development:

5. ETF