The initial disclosures from the much anticipated and recently completed Third Chinese Plenum were a dud. Which, in a world where all the upside comes from hope and faith in the future (since the present continues to get worse), meant at least 20-30 S&P points left on the table just because the quality of promises, pledges and emotional words out of the Chinese Communist Party was not strong enough. So in order to change that, Xinhua has just pre-released a document summarizing all the party reform initiatives, this time with the promises taken up to the next level.
Some of the disclosures via Bloomberg:
- CHINA COMMUNIST PARTY SAYS IT WILL DEEPEN REFORMS: XINHUA
- CHINA TO ACHIEVES GOALS MENTIONED IN DECISION BY 2020: XINHUA
- CHINA TO LOOSEN ONE-CHILD POLICY FOR MORE FAMILIES: XINHUA
- CHINA TO ACCELERATE YUAN CONVERTIBILITY: XINHUA
- CHINA TO TRANSFER 30% STATE-ASSET PROFITS TO STATE: XINHUA
- CHINA TO ALLOW TRANSFER OF NON-FARMING RURAL LAND: XINHUA
- CHINA TO ESTABLISH DEPOSIT INSURANCE SYSTEM: XINHUA
- CHINA TO REDUCE SCALE OF LAND ACQUISITION FROM FARMERS: XINHUA
- CHINA TO ABOLISH REEDUCATION-THROUGH-LABOR SYSTEM: XINHUA
- CHINA TO SET UP MORE COS. TO MANAGE STATE ASSETS: XINHUA
- CHINA TO SET UP NATIONWIDE DATA PLATFORM FOR PROPERTY: XINHUA
- CHINA TO ACCELERATE PROPERTY TAX: XINHUA
- CHINA TO BUILD OPEN MARKETS WITH NEGATIVE LIST SYSTEM: XINHUA
- CHINA TO EXEMPT MOST COS. PROJECTS FROM GOVT APPROVALS: XINHUA
- CHINA TO STRENGTHEN ANTI-CORRUPTION CHAIN OF COMMAND: XINHUA
- CHINA PLENUM DOCUMENT TO INCLUDE PROPERTY TAX: CAIXIN
Keep in mind that some of these, sich as the end of the one-child policy, were pre-pre-announced before [5], and nothing happened. But far be it for us to suggest a communist superpower will make promises and not deliver. All that matters is that the announcement has sent futures to fresh record highs. Just keep BTFATH - Bernanke and Yellen pledge that this time central-planning works.