In China’s vision for a ‘powerhouse’ stock market, it’s slow and steady over boom and bust
Beijing is emphasising gradual growth in its policies for capital markets, encouraging dividend payouts and drawing a contrast with the West
China’s high-level policymakers have reiterated the need to defuse financial risks and root out political corruption, two of President Xi Jinping’s long-term priorities, in the run-up to this year’s ‘two sessions’ – the annual meetings of the country’s top legislature and political advisory body. In this series, we take stock of how those efforts have progressed, and what remains to be done.
“Record Stock Market, and National Security, driven by our Great TARIFFS. I am predicting 100,000 on the DOW by the end of my Term,” he posted on social media.
As Trump lays a marker for the continued dominance of the world’s largest economy – and its pre-eminent financial sector – across the Pacific, the political leadership in China is also making plans.
“The financial sector under the leadership of our party is, in the final analysis, about serving the people,” said President Xi Jinping in a speech from 2024, republished last month in Qiushi, the Communist Party’s leading theoretical journal.
“This stands in stark contrast to the financial systems of some countries, where finance serves capital and caters primarily to the wealthy few.”