What to make of China’s 20th Party Congress

President Xi’s speech at the 20^th National Congress of the Communist Party of China (CPC) did not bring surprises. “The report was consistent with the policy direction we’ve seen from China over the last few years, emphasising development as a top priority for the Party,” writes Mirae Asset Global Investments Research Team for Asia-Pacific.

From a sector perspective, the team awaits more concrete policies over the coming quarters but “expects most sectors to benefit from China’s increased focus on development, security, and self-sufficiency”.

As an example, Mirae Asset names the software and internet sector since Xi mentioned China’s continuous pursuit of technological self-reliance. “With a greater emphasis on self-reliance, we expect accelerated substitution to domestic software products, starting from government, to state-owned enterprises, to other enterprises. Looking past the near-term macroeconomic challenges that hamper government and enterprises’ IT budget, we expect a rising proportion of spending on software by the whole nation to continuously digitalise and improve operational efficiency.”

Read the full assessment on am.miraeasset.eu.