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As expected, China revealed a new growth target of ‘around 5%’ in the Work Report at the National People’s Congress.
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However, the report disappointed markets as there were no clear sign stronger stimulus signals. In some respects the wording and planned measures were stronger but it was buried in the details.
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Lifting consumer spending is getting a high priority and the issuance of ultralong bonds for several years also suggests stimulus measures are set to continue.
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Other takeaways were stronger language on Taiwan, vowing support for the private sector, stronger efforts to attract FDI and a strong tech focus.
This morning China’s premier Li Qiang delivered his first work report after taking over from Li Keqiang. As usual the report did not provide any big surprises as much of the signals have already been revealed through politburo meetings and China’s annual Economic Work Conference held in December. Nevertheless, it seems markets had hoped for China using the occasion to take even stronger measures to lift confidence and announce new strong stimulus measures. These hopes were not met and Chinese offshore H-share stocks lost 2.6% by the end of the trading session.