HSBC Asset Management describes China’s stock market as notably resilient despite rising geopolitical risks and energy vulnerability. The new Five-Year Plan shifts focus toward quality growth, energy security, tech innovation and national security, with a 2026 GDP growth target of 4.5–5.0%. Policy support, tech focus and relatively low valuations underpin a constructive stance on Chinese equities and broader China exposure.
Five-Year Plan underpins China stocks
“China’s stock market has been remarkably resilient in the face of rising geopolitical risks. Despite being a major energy importer – and vulnerable to commodity price shocks – China’s strategic reserves, diversified sourcing and import routes, and expanded energy mix, are providing energy resilience.”
“No surprise then that its new Five-Year Plan (FYP) prioritises energy security, the green transition, and energy infrastructure.”
“Policymakers ratified the FYP at the recent “Two Sessions” meetings and set a new 2026 real GDP growth target of 4.5-5.0% (from “around 5%” last year). That change is a nod to the competing demand of supporting stable economic expansion while minimising bottlenecks and risks.”
“The new FYP marks a shift in policy focus from rapid growth to quality growth, economic resilience, and national security.”
“Overall, China’s market resilience, policy support, tech focus, and relatively low valuations, continue to support a positive view.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/china-policy-driven-resilience-and-quality-growth-hsbc-202603231709
