Viewpoints

What China’s 14th Five‑Year Plan Means for Investors

It will continue to be important to be an active investor during this period of transition and to carefully monitor the impact of policy on credit sectors.

China recently unveiled its 14th five-year plan (FYP) to guide the country’s economic development over the coming five years, along with the blueprint for a long-term strategy that outlines its vision for 2035.

Overall, we think the new long-term plan should imply a stable outlook for China, with diverse potential opportunities for investors across different sectors. China’s GDP growth should gradually moderate: with the emphasis on quality and sustainable growth, large-scale policy stimulus is no longer an option, except in extremely adverse conditions. Structural policies may be deployed instead to support growth in targeted sectors while mitigating systemic risks.

Log In Or Register
The Author

Stephen Chang

Portfolio Manager, Asia

Annisa Lee

Head of Asia-Pacific Credit Research

Carol Liao

China Economist

Related Insights

Disclosures

All investments contain risk and can lose value.

The investment strategies included herein are not based on any particularized financial situation, or need, and are not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other strategy, product or service. Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2020, PIMCO.

Asia Market Outlook 2021: Attractive Opportunities As Economies Rebound
XDismiss Next Article