Two signs from Xi's 203 minute speech
Chinese President Xi Jinping delivered a nearly three-and-a-half hour speech earlier today where he laid out the future priorities for China.
The Chinese stock market was higher on the day and that continued today with US-traded shares but market moves from China can never be trusted, especially at such a sensitive time for the government. There were three signals that China might pump the brakes in the year ahead.
The first was about what Xi didn't say. An often-repeated pledge was to double GDP between 2010 and 2020. It wasn't repeated.
Second, he continue to focus on a crackdown on corruption, something that's popular in China and a file where he achieved real results. In addition, he pledged to significantly reduce income disparity by 2035.
Finally, the calendar alone is reason for worry. China insists on market and political stability in the lead-up to the once-in-five-years Congress. In the aftermath is when the twists and turns begin.
If Xi is serious about reshaping China, then the year ahead is his best opportunity to delever, reform and stabilize.
