China’s 3rd Plenum Closely Watched By Market Players

The Chinese leadership confab that opened over the weekend could be a game-changer for investors willing to gamble on how policy changes might affect the country’s stock market. While Beijing has been mum on details of the widely-anticipated reforms, the investment community has mapped out its expectations.

Analysts say the so-called Third Plenum of the Communist Party’s Central Committee may set a clearer path for the economy and unveil plans that could change valuations for businesses ranging from financials to agriculture. Investors are looking for cues in a number of key areas:

Further opening up of the capital account and a more market-based foreign exchange policy. A freer yuan exchange rate, most likely in the form of a wider daily trading band for the tightly managed currency, is expected to lead to increased short-term volatility but further appreciation for the yuan in the long run, as long as Beijing maintains relatively fast economic growth.

Wall Street Journal

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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu