CHINA: Goldman Sachs On China's "Two Sessions"

The US Bank expects China's growth target for this year at around 5%, with a supprotive fiscal stance.

• Goldman Sachs: "China's annual "Two Sessions", namely the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and the National People's Congress (NPC) will begin on March 4th and March 5th respectively and will likely last till mid-March. The 2024 Government Work Report which contains a series of economic targets and key policy priorities, and the fiscal budget report will be released during the "Two Sessions". We continue to expect an ambitious growth target (around 5% of real GDP growth) and more supportive fiscal policy stance (3% on-budget fiscal deficit ratio with RMB 1 trillion central government special bond and RMB 4 trillion local government special bond) this year. Key topics to monitor during this year's "Two Sessions" include discussions about the government’s “new model” for the property sector, local government financing and fiscal reforms, as well as other demand-side stimulus such as support to consumption."