Economic Policy Meeting - Investors are anticipating a key economic policy meeting with President Xi Jinping and other leaders, seeking signals to sustain the stock rally that has occurred this year [1] - The annual Central Economic Work Conference is crucial as it sets the macroeconomic agenda for the following year, with the market looking for new catalysts to extend its solid performance [1] Fiscal and Monetary Policy Expectations - Investors expect Beijing to maintain a proactive fiscal stance and accommodative monetary policy in 2026, focusing on stronger domestic demand, technological innovation, and reducing excess capacity in the green economy [2] - Analysts highlight that fiscal policy will be a major focus, with potential front-loading of fiscal spending or deficits likely benefiting small-cap and high-beta consumer-discretionary companies, such as retailers [3] Market Performance and Economic Fundamentals - The CSI 300 Index has increased by 17% this year, outperforming the S&P 500's 16% gain, while the technology board of the Shanghai Stock Exchange has surged by 36% [4] - Recent data indicates a broadening economic slowdown and a continued decline in property prices, which has affected the market's ability to build on recent gains [4] Policy Priorities - An earlier Politburo meeting chaired by Xi Jinping has outlined priorities for the upcoming conference, emphasizing domestic consumption and technological self-reliance for 2026, along with continued fiscal expansion and monetary easing [5][6] - The meeting's readout did not specifically address the property sector or capital markets, indicating a potential shift in focus [6]