China: Policy-driven resilience and quality growth – HSBC

HSBC Asset Management describes China’s stock market as notably resilient despite rising geopolitical risks and energy vulnerability. The new Five-Year Plan shifts focus toward quality growth, energy security, tech innovation and national security, with a 2026 GDP growth target of 4.5–5.0%. Policy support, tech focus and relatively low valuations underpin a constructive stance on Chinese equities and broader China exposure.

Five-Year Plan underpins China stocks

"China’s stock market has been remarkably resilient in the face of rising geopolitical risks. Despite being a major energy importer – and vulnerable to commodity price shocks – China’s strategic reserves, diversified sourcing and import routes, and expanded energy mix, are providing energy resilience."

"No surprise then that its new Five-Year Plan (FYP) prioritises energy security, the green transition, and energy infrastructure."

"Policymakers ratified the FYP at the recent “Two Sessions” meetings and set a new 2026 real GDP growth target of 4.5-5.0% (from “around 5%” last year). That change is a nod to the competing demand of supporting stable economic expansion while minimising bottlenecks and risks."

"The new FYP marks a shift in policy focus from rapid growth to quality growth, economic resilience, and national security."

"Overall, China’s market resilience, policy support, tech focus, and relatively low valuations, continue to support a positive view."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)