Shanghai Comp daily
This week’s CPI data showed that China has room for policy stimulus and its lackluster economic performance certainly argues for it. There is some optimism with some Chinese stocks climbing this week (from low levels).
The leadership meeting will outline efforts to promote advanced manufacturing, revise the tax system to curb debt risks, manage a vast property crisis, boost domestic consumption and revitalise the private sector, according to policy advisers cited by Reuters.
What has me worried is this: On Wednesday China announced more short-selling curbs.
A friend writes:
Why
would the Government inflict such short-selling punishment only 5 days before
the Third Plenum if it had confidence that what is going to be announced at the
Plenum was “what the people wanted”? Answer: It wouldn’t.
Expectations are low but it looks like all we may get is a speech from Xi highlighting some lofty goals but no details or a clear path on how to get there.
The meeting takes place from July 15-18.