Four key take-aways for foreign investors from China’s NPC

HONG KONG - While much can be said in a 3.5 hours speech, says global asset manage Natixis, there are four takeaways for foreign investors from Xi Jinping at China’s National People’s Congress.

· Xi is a game changer: first change in the “Principle Contradiction” since 1981

· Increasingly China’s economy will be a State-led model with a larger role for SOEs and industrial policy

· There will be renewed emphasis on the importance of FDI and in ensuring a level playing field for foreign investors

· Elimination of "speculation" characteristics in the property market

“In a nutshell, expect more welfare, better income distribution at the cost of less competitiveness,” says Natixis. “Expect more State control but also some niche sectors for foreign investors. Finally, expect housing prices to grow only moderately for the foreseeable future.”  www.natixis.com (ATI).