China | What do we expect from 2023 March “Two Sessions”?

The annual “two sessions” of China will be held in the coming month, which will announce the top political leadership reshuffle and the new stimulus to support economic recovery.

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), have always been the top priority in China’s political agenda every year.
• Based on the outcome of the 20th National Congress of the Communist Party of China (CPC) held in October 2022, the top agenda of the coming “two sessions” is expected to secure a smooth transformation to President Xi Jinping’s third-term of President Xi accompanied by reshuffling and reforming the State Council.
• The market also expects that the authorities will disclose the details of the new stimulus package.
• GDP growth target for 2023 is expected to be at “around 5%” and other economic targets will also be promulgated.
• We expect the key topics will include not only the short-term issues such as how to provide expansionary monetary and fiscal policy to rebuild market confidence and how to reposition the role of real estate sector in Chinese economy, but also a series of long-term issues, such as aging, debt overhang, urbanization and China’s new growth model.

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