Key takeaways

• China’s Fourth Plenum outlined a clear demand-side-driven growth shift in the 15th Five-year Plan (FYP) and emphasised the need to focus on internal development and self-sufficiency amid heightened external uncertainty.
• With more assertive language used than in the 14th FYP, the latest communiqué stays on the strategic course of “China’s high-quality development”, with key strategic focuses on domestic demand and supply, technological innovation, household and consumer wellbeing.
• We maintain overweight on both Chinese onshore and offshore equities, with a barbell strategy to keep exposure to the tech sector and high dividend quality stocks. China’s innovation is driven by wider AI application and adoption, and an increasingly self-reliance-focused hardware and software ecosystems. Our strategy helps portfolios to weather uncertainties in Sino-US trade negotiations and volatility in cyclical Chinese data.

Please refer to the full report for details about the event and our investment view.

https://www.hsbc.com.my/wealth/insights/market-outlook/special-coverage/our-take-on-chinas-fourth-plenum-a-more-assertive-shift-to-domestic-demand/