Growth, Reform Central to Beijing’s Next 5-Year Plan
In a recent article published on Barron's Asia website, Wei Yao, China Economist at Societe Generale Cross Asset Research, explains the expected reforms from the Chinese government for the 13th five-year plan.
''The 5th plenum of China’s 18th Communist Party Congress is expected to take place in mid-October. The 13th five-year plan will be discussed then. The main themes are most likely to echo the reform strategies and policy priorities laid out since the 3rd plenum in 2012. The plan will set out two dozen policy targets, both binding and non-binding, of which the GDP growth target will be the most watched. We see a chance of it being lowered further to 6.5% per annum for 2016-2020. If Beijing is still committed to structural reform, the focus of the plan should be more about restructuring state-owned enterprises (SOEs) and liberalizing the service sector. Regardless of the reform plan, the government will strive to do just enough to hit the 7% GDP growth target this year.''
Wei Yao, China Economist, Societe Generale
To read the complete article, please visit: www.barrons.com