Macro Insights Weekly - China after the NPC

China’s challenges are counteracting an adverse economic cycle and geopolitical headwinds while carrying out structural reforms. Property sector and local govt funding stress are critical to resolve.
After a pivotal NPC, ambitious growth and inflation targets have been set.
The burden of support would come from monetary/financial policies and local governments.
But many local governments are saddled with heavy debt that need restructuring urgently.
Also, short of property sector restructuring, consumer and investor sentiment would remain poor.
Trade, tourism, and mobility data from spring festival, both during and after, hold promise.