National People's Congress: Boosting China's Economy

The National People's Congress opens this week as one of the most eagerly awaited events, with the market on tenterhooks over the possibility of stimulus measures to boost economic recovery. During this meeting, Chinese leaders will discuss measures aimed at strengthening growth, controlling deflation and providing crucial support to the real estate sector. As part of these deliberations, a potential increase in public spending is on the horizon, an action that could boost various productive sectors and generate a positive ripple effect throughout the economy. In addition, boosting innovation, particularly in the field of artificial intelligence, is emerging as a key strategy. Renowned technology companies, such as Hua Hong Semiconductor and Tencent Holdings, have made remarkable progress, but the challenge is to maintain this pace in an environment of increasingly fierce global competition. Boosting domestic consumption is also a priority. The authorities seek to implement policies that not only stimulate demand, but also strengthen strategic sectors, such as the automotive and household appliances sectors. Well-known manufacturers, such as BYD, Geely and Haier, could benefit from these measures, which would translate into a virtuous circle that favors the stability and growth of the domestic market. On the other hand, the real estate sector remains one of the big question marks. There is speculation about the possible issuance of approximately 800 billion yuan in local bonds to support developers. This initiative, if it materializes, could provide needed relief to companies in the sector such as China Vanke and China Resources Land, helping to counter the uncertainty that has characterized the market in recent times.

Technical Analysis Hankg Seng (Ticker AT: HKInd)
Last Friday the index closed trading at new highs, partially correcting in what looks like a bullish bounce. Today's Asian session seems to have confirmed it with a bullish engulfing. The checkpoint zone (POC) is located at 17,696 points well below the area of the last impulse and support point which is located around 19,437 points. RSI at the session highs was at 81.52% and currently this overbought level has moderated to 68.22% but this does not mean that the trend has stopped but that it is looking for new highs. The next milestone to expect will be generated if the index pierces the highs of 24,071 towards 25,000 points.

All in all, the National People's Congress is shaping up to be a strategic platform that could redefine China's economic course. With a focus on stimulating investment, boosting innovation and strengthening consumption, the meeting promises to lay the foundations for a new stage of growth in the Chinese economy, generating optimistic expectations both domestically and internationally.




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