China: Long-game growth strategy – Standard Chartered

💡 DMK Insight

China’s projected GDP growth target of 4.5–5.0% for 2026 is a signal for traders to recalibrate their strategies. This forecast, slightly lower than 2025, suggests a cautious economic outlook that could impact commodity prices and global markets. Traders should watch for reactions in the Chinese yuan and related assets, as a weaker growth target might lead to increased volatility. If the yuan depreciates, it could trigger a sell-off in commodities like oil and copper, which are sensitive to Chinese demand. Keep an eye on key technical levels in these markets, especially if the yuan breaks below recent support levels. On the flip side, if the growth target is perceived as conservative but achievable, it might stabilize market sentiment in the short term. Watch for any shifts in monetary policy or stimulus measures that could arise from this announcement, as they could provide trading opportunities in both forex and commodities markets.