Shanghai Comp Daily
This week’s CPI data showed that China has room for policy stimulus, and its weak economic performance certainly justifies it. There is some optimism with some Chinese stocks rising this week (from lows).
The leadership meeting will outline efforts to boost advanced manufacturing, review the tax system to reduce debt risks, manage a massive property crisis, boost domestic consumption and invigorate the private sector. According to To the policy advisers cited by Reuters.
What worries me is this: China announced further restrictions on short selling on Wednesday.
A friend writes:
Why would the government impose such a penalty on short selling just five days before the third parliamentary session if it was confident that what would be announced in the third parliamentary session was “what the people want”? Answer: It would not.
Expectations are low but it seems all we might get is a speech from Xi highlighting some lofty goals but without details or a clear path on how to get there.
The meeting will be held from July 15 to 18.