“A realisation in Europe on the need to spend more on defence and infrastructure has created a positive sentiment, leading to the recent upside in the markets.”
Premier Li Qiang kicked off the annual meetings of the National People’s Congress (NPC) with the government’s Work Report, marking the nation’s biggest political event of the year. Besides a busy calendar of political decision-making, the NPC is also closely watched by markets as Beijing sets the course for the economy and macro policies for the remainder of 2025.
Market performance has been challenged over recent weeks. The more benign macroeconomic backdrop that investors had in mind going into 2025 has arguably been shattered. The US administration’s challenges to the global trading and security order have the potential to disrupt trade, capital flows, consumption, investment spending and government policy.