This year’s political gathering has started on March 5th and will last until March 11th.

During the first day, and after months of anticipation, Beijing has revealed how it plans to keep the Chinese economy steady in a challenging and uncertain macro environment.

The country’s plan is to stimulate a growth rate of around 5% through increased fiscal spending (about 2% of GDP), monetary support, and initiatives focused on consumption and high-tech sectors. 

Initial numerical targets fell slightly short of average expectations, with investors waiting for more budget and spending details from upcoming ministerial meetings. In addition, past experience suggests that additional support could be allocated later in the year.

Indeed, optimism about AI, as opposed to policy easing, has been behind the recent re-rating of Chinese equities, led by technology stocks. However, without a powerful policy shift to decisively turn around the economy, the ability for this rally to extend beyond tech may be questioned. Amundi maintains an overall neutral stance on China equities, but stays selective across different sectors and indices.

For fixed income, upward pressure on bond yields could persist in the near term, given the lack of immediate monetary easing.

In a relative sense, the uncertainty in the US, also related to Trump’s policies, are making China’s policymakers appear more accountable, which is encouraging global capital to flow back into China’s riskier assets.

Chinese equity chart - March 2025
Read our latest Investment talks to find out more
Download the PDF

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 6 March 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 6 March 2025

Doc ID: 4298957