There was no surprise from the conference.
But the market expectation was low before the conference. The meeting has focused on the property sector, high quality development and safety/security.
The attention that the property sector received as measured by the frequency of mentions was as high as in the 2015 conference when the property was mired in distress as well. It also specifically said giving equal access to financing to developers regardless of ownership.
Some may be disappointed by not seeing specific stimulus package coming out of the meeting. Consequently, the A50 $China A50 Index - main 2312(CNmain)$ $MSCI China A50 Index - main 2312(MCAmain)$ and the iron ore futures are muted following yesterday's late-day reversal.
The conference's focus on security and risk, as well as high-quality development naturally implies that at this stage quality trumps speed. Domestic demand and consumption have also been discussed quite extensively, hinting that management has plans up its sleeves. In recent years, the topic of "reform and open" has received less mentions in the conference discussion.
While we all believe that it is important to continue the path of reform and open, China has been doing so for the past forty five years. Thus, naturally there are shifting focus of work, given the global environment and domestic economic restructuring.
Simply put, China has grown tremendously because of "reform and open", it has become a deeply entrenched part of the country's planning going forward.
Overall, the market may find few spurs from the conference. But at this juncture, it pays not to be obsessed with daily market fluctuations. It is a time to plan ahead for the Year of the Dragon.
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