Investors disappointed by the Communist Party’s lack of policy guidance at its recent congress can brace for a string of meetings in coming weeks that could shed light on how top officials plan to manage the immediate risks to China’s economy.
The ruling party is set to lay out policy priorities for 2023 and beyond in several high-level events over the next eight or so weeks. Key among them will be an early December meeting of the new 24-member Politburo — now packed with Chinese President Xi Jinping’s loyalists — which will set the tone for future economic policy.
Top of mind for investors is whether Beijing will begin easing up on its zero-tolerance approach to combating COVID-19 outbreaks. Financial markets have been whipsawed this week by rumors of a major shift in policy, even though officials said Wednesday they’re still committed to the strategy. While the Politburo may not directly address the issue, language around "COVID zero" and the relationship with economic growth will be closely scrutinized.