A Step In China's Economic Journey

A Step In China’s Economic Journey by Robert Horrocks, PhD, Matthews Asia

We emerge from the recent Chinese Communist Party Plenum with sketches of a new “five-year-plan.” Hurrah! There is always much fanfare around these events—not least in the investment community. We will no doubt hear the sentiment that China is a policy-driven stock market and so all the short-term traders are keen to see which sectors and industries are in favor. Then begins the game of who might get a subsidy, a contract or beneficial regulation.

Fair enough, if that is your game.

But I would argue that much of what has come out of the plenum is hardly a surprise. And you don’t need to think of China...