On October 20, the share prices of stocks related to Chinese economic policies—set to be gradually unveiled at the Fourth Plenum of the Central Committee of the Chinese Communist Party, held from 20-23 October—rose in response to these developments. Leading the rally was PTT Global Chemical Public Company Limited (SET: PTTGC) stood at THB 24.00, up THB 0.60 or 2.56%, with a total trading value of THB 620.41 million.
Shares of The Siam Cement Public Company Limited (SET: SCC) were at 205 baht, up THB 4.00 or 1.99%, with a total trading value of THB 482.77 million; Indorama Ventures Public Company Limited (SET: IVL) were at THB 19.90, up THB0.50 baht or 2.58%, with a total trading value of THB 293.55 million; and Delta Electronics (Thailand) Public Company Limited (SET: DELTA) ended at THB 193.00, up THB 4.50 or 2.39%, with a total trading value of THB 982.16 million.
The Fourth Plenum will gather hundreds of top party leaders, including Xi Jinping, with the purpose of reviewing the draft of the 15th National Economic and Social Development Plan (2026–2030), which sets the five-year strategic framework for China. Global investors are closely monitoring the event for any signals of changing economic policy directions.
A key element of this congress is that the Ministry of Finance of China announced additional economic stimulus measures worth a total of CNY 500 billion, or approximately THB 2.5 trillion, under the public debt framework, aiming to ease local government financial stress and accelerate infrastructure investment in 4Q25.
The measures focus on issuing additional local government bonds to pay off accumulated local government debt and increase investment spending in major provinces, providing liquidity for local authorities and the construction sector.
This plan places an emphasis on high-quality development driven by innovation. It includes the drafting of main targets and key measures for economic growth, technological innovation, citizens’ livelihoods, and more. These efforts will further modernize the industrial system, with targeted measures to strengthen the real economy, upgrade traditional industries, promote emerging sectors, and strategically build the industrial framework of the future.
Krungsri Securities (KSS) stated that the petrochemical sector is showing positive signals, particularly for IVL and PTTGC shares, as investors anticipate the Fourth Plenum to announce an economic stimulus plan as well as a new medium-term five-year development plan, which should positively impact stocks connected to China’s domestic economy and provide support for the direction of the petrochemical sector overall.
This policy aligns with KSS’ previous view that the Chinese government would expand fiscal measures by CNY 500 billion yuan to maintain gross domestic output (GDP) at near 5%. Additionally, the CCP is advancing “pre-approval for 2026 bond issuance quotas,” totaling about 60% of the 2025 quota, to enable spending from 1Q26 onwards, following this year’s fiscal injections.
KSS remarks that this is a clear signal that the Chinese government is choosing fiscal policy over monetary policy to stabilize the economy at year-end, avoiding increased leverage in the banking system. This marks the beginning of the “bottoming process” for China cyclical plays.
KSS sees the measures giving positive support to petrochemical and chemical stocks, particularly PTTGC and IVL, which would benefit from rising demand for raw materials in China’s manufacturing and construction sectors as the domestic economy recovers toward year-end.
Analysts at Bualuang Securities assess that stocks in the petrochemical and construction materials group—such as SCC, PTTGC, and IVL—are likely to see a strong short-term rebound amid speculation about benefits from China’s economic policy announcements.
However, from a long-term structural investment perspective, analysts believe companies linked to China’s new economic era will see clear support, especially in technology and electronics, such as DELTA, Cal-Comp Electronics (Thailand) Public Company Limited (SET: CCET), KCE Electronics Public Company Limited (SET: KCE), and Hana Microelectronics Public Company Limited (SET: HANA).
These companies all have roles in the supply chain for EV components, chips, and touch displays aligned with China’s high-tech industrial development plan for the next five years.
At the same time, industrial estate groups, such as WHA Corporation Public Company Limited (SET: WHA) and WHA Utilities and Power Public Company Limited (SET: WHAUP), are set to benefit directly from international technology companies expanding their manufacturing bases in Asia.
Meanwhile, traditional industries like PTTGC and SCC may also indirectly benefit from China’s supply chain upgrades, especially in intermediary materials and chemicals used in manufacturing electronics and new energy devices, supporting medium-term group profits.
Phillip Securities (Thailand) notes that “China Play” themed stocks have risen on sentiment from China’s better-than-expected Q3 and nine-month economic data, particularly in industrial output and a higher employment rate. The market is also hopeful that this week’s Communist Party meeting will discuss further economic measures, providing momentum for stocks linked to China’s production and economy—especially the two major stocks in the petrochemical and construction materials group: PTTGC and SCC.
