Thoughts on the 2023 China National People's Congress

The official GDP growth target of "around 5%" is lower than many external forecasts, and fiscal policy looks less accommodative relative to market expectations and that of 2022. In our view, these conservative targets leave room for outperformance and likely reflect cautiousness over unexpected events and reluctance in overstimulating the economy. Nonetheless, China has a multitude of fiscal tools (such as drawing on more state-owned enterprise profit repatriation, increasing LGSB quotas, and targeted lending by policy banks) to draw upon if needed. Young fundpicker: U-turn on the Gre...