China CNY

China Chinese People’s Political Consultative Conference

Impact:
Medium

Next Release:

Date:
Period:
What Does It Measure?
The Chinese People's Political Consultative Conference (CPPCC) is an annual political event in China that traditionally measures the sentiments, priorities, and policy recommendations of various sectors of society in relation to national governance. It focuses on areas such as economic development, social stability, and national policy-making, providing insight into both immediate and long-term strategic directions for the Chinese government.
Frequency
The CPPCC convenes annually, typically around early March, and officially ends before the National People's Congress (NPC), with its proceedings commonly summarized in reports that are released shortly thereafter.
Why Do Traders Care?
Traders pay close attention to the CPPCC as it offers critical insights into China's policy direction, economic agenda, and legislative priorities, which can significantly influence market sentiment and economic forecasts. Outcomes or announcements from the conference can affect asset prices, including the Chinese yuan (CNY), Chinese equities, and commodities, fostering bullish or bearish responses depending on perceived government strength and economic outlook.
What Is It Derived From?
The CPPCC derives its insights and recommendations from discussions among its members, which include politicians, business leaders, and representatives from various social sectors across China. The conference synthesizes these diverse viewpoints into a unified report, using qualitative assessments to reflect a consensus on policy recommendations rather than rigorous quantitative measures.
Description
The CPPCC serves as an important political advisory body in China that integrates various societal interests into national policymaking, influencing legislative proposals and state priorities. While it does not produce statistical data like other economic indicators, its recommendations can lead to substantial regulatory and economic shifts, impacting multiple sectors.
Additional Notes
The CPPCC is considered a coincident economic indicator, reflecting the actual sentiments of political and economic leaders at the time. Its discussions often precede government policies that align with trends, making it a barometer for upcoming regulatory changes and economic direction both within China and as they relate globally.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for CNY, Bullish for Stocks. Lower than expected: Bearish for CNY, Bearish for Stocks. Dovish tone: Signaling economic support with a focus on stability and growth is usually good for the CNY but bad for Stocks due to potential concerns over long-term profitability.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise