In the Great Hall of the People, the Central Committee of the Chinese communist party has set in motion the most important, four-day, political meeting of the year, dubbed the plenum, discussing and unravelling how strategic policy decisions will steer the nation’s development in the next five years.

A draft of the next five-year plan, running from 2026 to 2030, will be on display, highlighting policymakers’ biases and goals, and leaders will also announce the growth target for the economy. Most likely, the target will be set around the same level as the past plenum, which is 5% per annum, a level which so far, the Red Giant has managed to achieve.

Earlier today, the latest GDP print for the third quarter of 2025, indicated that China marginally exceeded its 4.7% growth expectation and posted a 4.8% rise, which is indeed close to the 5% annual target, but wider geopolitical turmoil, particularly with the US around trade, could impede the process.

Broadly speaking, China has so far managed to find customers elsewhere and divert the mass outward flow of goods from its shores into nearby nations, circumventing the US and its harsh import tariffs, broadcasting its adaptability, safeguarding its dominant trade position. Trade has been its primary strength, nevertheless.

On the fixed asset investment front, the nation posted a contraction as international investors remain worrisome after the housing crisis a few years back, and with a tarnished reputation and has investors second guessing, abstaining from investing in its real estate sector. New home prices across 70 cities continue to fall month after month and are on a 27th consecutive month losing streak, placing pressure on Beijing to introduce measures in order to cushion the property market.

Another thorn in the side of the Giant over the past few years has been and still is, the anaemic domestic demand and the downbeat retail sales activity from consumers, which is fuelling further the deflationary problem, pressuring policymakers to intervene by injecting more liquidity via stimulus packages and facilitate its revival.

Technical Analysis

HSI Chart – Hang Seng Index seeks to end pullback after the kickstart of the fourth plenum meeting

Resistance: 26300 (R1), 27400 (R2), 28500 (R3)
Support: 24875 (S1), 23800 (S2), 22700 (S3)