A new dawn for China?

The completion of the current leadership transition in China is key to China and the global economy and should bring relief to the Chinese equity markets.

Unlike in previous political transitions in modern era China, there seem to have been more negotiations about key roles in the government for this new team. In fact, one could see this leadership team as the last of its kind. The new leader, Xi Jinping, is still in the vein of Deng Xiaoping who led China towards a market economy in the eighties, but he could potentially be steering China towards a new leadership style. Beyond 2017, given the expected slowdown in China due to its size and demographic trends, many argue a democratisation of the governing party of China would be wise to...