China | Understanding 2023 Government Work Report and State Council reforms

Summary

The main takeaways of this year’s “two sessions” include: 2023 growth target and other key economic targets, 2023 monetary and fiscal policy outlook and the State Council institutional reforms together with top political leadership transformation.

Key points

• Key points:
• The annual “two sessions” of China, namely the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) officially concluded today.
• We highlight the main takeaways of this year’s ‘two sessions” and the 2023 Government Work Report for the following perspectives:
• Institutional reforms of the State Council include the establishment of National Financial Regulatory Administration to replace CBIRC, restructured its Science and Technology Ministry to concentrate resources on achieving tech breakthroughs and establishment of National Data Bureau.
• Top leadership transformation includes not only the continuation of President Xi his third term, but also the new premier Li Qiang taking office and the continuation of the PBoC central governor Yi Gang and other appointments of top leadership positions.
• The "around 5%" growth target is in line with our expectation, and the authorities will continue the expansionary fiscal stimulus and prudent monetary policy to support economic recovery after lifting "zero Covid".

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