Growth Dragons Weekly: China Stocks Jump After Two Sessions, Manus AI Gains Buzz, Apple Supplier Eyes IPO
What happened in China this week:
China Stocks Jump After Two Sessions as Policies Unveiled
Manus AI: The Next DeepSeek Moment? Partners with Alibaba to Develop Chinese AI Agent
Apple Supplier Lens Tech and World’s Biggest Pig Owner Muyuan Eye Hong Kong IPO
Flying Car Maker EHang’s Revenue Surges 190%
Data Center Operator VNET Sees 11% Revenue Growth, Riding China’s AI Boom
#1 China Stocks Jump After Two Sessions as Policies Unveiled
China's Two Sessions have drawn to a conclusion this week. The meeting has emphasized stability, economic resilience, and a commitment to global openness amid geopolitical tensions. The directions provided in this meeting provide the direction that China is working towards for 2025 and beyond. We believe that this meeting has signalled very strong government support to growing the economy, leading to an improvement in investor confidence. Key takeaways from the meeting include:
Fiscal Spending Expansion
China will issue 1.3 trillion yuan (US$182 billion) in ultra-long special treasury bonds in 2025, a 300 billion yuan increase from last year. The deficit-to-GDP ratio will rise to 4%, up by one percentage point.
Encouraging Foreign Investment
China reaffirms its commitment to opening-up, pledging to expand foreign access to telecoms, healthcare, and education while easing restrictions on the internet and cultural sectors. Foreign investors will be encouraged to cooperate across supply chains.
Support for Private Enterprises
The government vows to strengthen legal protections and policy support for private businesses, ensuring fair treatment and preventing profit-driven law enforcement. A “unified market” will be established to foster fair competition.
Boosting Future Industries
China will accelerate advancements in AI, smart terminals, IoT, 5G, biomaterials, quantum technology, embodied intelligence, and 6G through a dedicated “future industries” mechanism.
New Role for Hong Kong and Macau
Beijing will support economic development and deeper global engagement for Hong Kong and Macau under the “one country, two systems” framework. The Greater Bay Area will play a key role in economic growth.
Military Spending Unchanged
China’s defense budget will rise by 7.2% to 1.784 trillion yuan (US$245 billion), marking the third consecutive year of single-digit growth, as military activities near Taiwan continue.
Jobs and Consumption
To combat sluggish consumption and job pressures, China aims to create 12 million new urban jobs while stabilizing the real estate and stock markets. Support will be provided for graduates, migrant workers, and vulnerable groups.
Navigating Global Challenges
Premier Li Qiang acknowledged growing geopolitical tensions affecting trade and technology. He expressed gratitude to Hong Kong, Macau, Taiwan compatriots, and international friends, emphasizing China’s resilience amid global uncertainties.
These takeaways provide a very comprehensive thought leadership in enhancing domestic and international influence of China. To sum up the meeting, China pledged to achieve China’s 5% GDP growth target through strengthening legal protections for private businesses. There will be a new private-economy promotion law in progress to prevent unfair fines on businesses and ensure clear legal safeguards.
Besides boosting confidence in the private industry, China’s central bank (PBOC) has mentioned it is exploring new structural tools to support innovation, domestic consumption, and exports amid global economic uncertainty. Governor Pan Gongsheng reaffirmed commitments to cutting interest rates and the reserve requirement ratio (RRR) to stimulate growth while maintaining yuan stability and managing financial risks. We are positive towards these developments as the depreciation of the USD is giving more room for China to pursue such expansionary policies.
These policies were positively received by investors with the Hong Kong index jumping on the receive of such news. The big tech in China received the expansionary policies positively with investors pricing in stronger future outlooks. The Chinese government has shown strong conviction over its support of the economy. Furthermore, their tone does seem to signal a willingness in increasing the magnitude of stimulus when needed.