by winston » Tue Nov 03, 2020 1:22 pm
China - 14th Five-Year Plan focuses on quality growth, innovation and reforms
The Fifth Plenum of the 19th Party Congress concluded in end October, with a reiteration of the direction towards quality growth, highlighting the longer-term, non-numerical goals of China’s 2035 development vision and guidelines for the 14th Five-Year Plan.
In terms of its long-term goals, China has a target to achieve socialist modernisation, with GDP per capita reaching the level of mid-income developed economies by 2035 and to expand its mid-income population, with a strong emphasis on innovation and market reform.
Key highlights of the plenum included:-
i) the de-emphasis on growth target expectations, with no specific growth targets for the next five years;
ii) “dual-circulation” as a key development strategy alongside other reforms such as “new urbanisation”, “new infrastructure”, state-owned enterprise reform, and market opening up; and,
iii) focus on emerging pillar industries – technology and innovation, and clean and renewable energy.
While detailed sector guidelines and policies have yet to be announced, we believe the emphasis on the “dual-circulation” development strategy will benefit sectors such as clean and renewable energy, domestic consumption, high-end industrial internet and “new infrastructure”.
We maintain our preference on autos, internet and insurance. We are getting less negative on Chinese banks.
Source: OCBC
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