China just commenced its 2026 Two Sessions meeting.
The Two Sessions is an annual meeting of China's National People's Congress (NPC) and its political advisory body, the CPPCC.
It provides a rare opportunity for investors to understand the country's thinking on the economy. It includes the country's GDP growth target, fiscal priorities, and key policy agenda set for the year ahead.
The team at Betashares released a report yesterday, analysing the outcome. The report also provided a snapshot of how investors can position themselves to benefit.
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Why is this meeting important for Aussie investors?
China's annual "Two Sessions" can have a meaningful impact on Australian investors.
Australia's economy – and many of its listed companies – are closely tied to Chinese demand.
The policy signals coming out of the meetings often shape expectations for commodities, trade flows, and regional growth, all of which influence Australian markets.
What did Betashares have to say?
According to Hugh Lam, Investment Strategist at Betashares, the most notable shift was the GDP target moving from a single figure of 'around 5%' to a range of 4.5–5%.
He said this is signallying a deliberate move away from 'growth at any cost' toward prioritising high quality, sustainable development.
While the softer target may be viewed negatively, the range provides more policy flexibility with room to either meet the minimum target or to surprise on the upside.
Ultimately, the change reflects an acknowledgment from the Chinese government that the external trade environment remains highly uncertain and that recalibrating internal growth drivers away from exports toward consumption will take some time.
The report said the policy mix increasingly rewards sectors tied to the innovation, self-sufficiency and clean energy themes.
Simultaneously, it is penalising sectors reliant on infrastructure spending or consumer confidence that has yet to meaningfully recover.
ASX ETFs set to benefit
Betashares said the upcoming 15th Five-Year Plan is set to embed AI and technological self-sufficiency as core national priorities. Increased fixed asset investment in this area should support continued growth.
Additionally, strong policy tailwinds, global leadership in clean energy, and an increased need for energy security amid the ongoing war in Iran present tailwinds for renewables.
The team at Betashares is bullish on Chinese/Asia technology and renewables.
The report identified two ASX ETFs that offer exposure to these sectors:
- Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA) – Targets the 50 largest technology and online retail stocks in Asia (ex-Japan).
- Betashares Energy Transition Metals Etf (ASX: XMET) – XMET provides exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver and rare earth elements.
