Understanding the Rise of China

We believe the positive effect on the equity markets will not be short-lived or limited. A component of U.S. Global’s investment process is to closely follow government policies because they tend to be precursors to change. Xi’s policies, if successfully implemented, “will undoubtedly have profound long-term implications for the Chinese economy and society at large,” spanning economic, political, cultural, social and environmental issues, says BCA.

Some say the sweeping reforms will have an impact similar to the momentous changes following the Third Plenary Session in 1978, when Deng Xiaoping instilled the concept of free markets and ushered in a new economic era.

“Covering 15 major areas and 60 key points, the document is specific, substantial, comprehensive and actionable,” says Jefferies. The changes are so significant, it “rivals that of 1978, when Deng Xiaoping declared the opening of China,” says the research firm.

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