Global investors are closely watching China’s annual ‘Two Sessions’ meeting in Beijing. The Chinese People’s Political Consultative Conference (CPPCC) will begin on March 4, 2026, followed by the National People’s Congress (NPC) on March 5, 2026.
During these sessions, the Chinese government will present its Five-Year economic and social development plans and outline major policy directions and key economic measures for the coming period. These announcements are expected to set the course for China’s economy and impact regional financial markets.
Analysts note that if China announces large-scale economic stimulus, especially clear and higher-than-expected fiscal stimulus measures, there may be a positive short-term effect on Asian stock markets, including the Thai stock market, which could see a rebound. Sectors such as commodities and global plays equities are expected to benefit early in this trend.
Topics to be monitored include statements on fiscal policy direction, deficit targets, sovereign bond issuance, and support measures for the property sector and domestic consumption. These will be key indicators of the Chinese government’s commitment to economic stimulus this year.
DAOL Securities (Thailand) expects the meeting’s outcomes to positively impact Thai stocks, particularly:
- Petrochemicals, as China is a major global chemical consumer, and recovery in manufacturing and construction would lift plastic demand and petrochemical spreads.
- Shipping, with expected gains from rising international trade and freight rates.
- Logistics, benefiting from rising goods transiting through Thailand due to exports and transit trade, where goods pass through a ‘third country’ before reaching their final destination.
Additionally, Mr. Koraphat Vorachet, Division Head of Research at Krungsri Securities (KSS), stated that China’s economic policies will significantly impact Asian equity markets. He identified several factors to watch: China is expected to set its GDP growth target at 5%, which aligns with historic norms but would be positive if officially announced.
Economic-driving policies focus on innovation and upgrading industries to enhance competitiveness, along with financial and fiscal measures to stimulate the economy. Meanwhile, China’s anti-overcapacity (Anti-Involution) policies are expected to address industrial supply, reducing systemic excess and benefiting investment sentiment regionally.
The analyst recommends investors focus on ‘Macro Theme’ sectors, especially infrastructure and industries linked to Data Center investments, as well as companies with strong earnings drivers. Many Thai sectors remain attractive, particularly those with strong fundamentals and exposed to mega-trends in infrastructure, energy, and technology.
- Power plant: The sector remains a defensive sector, with stable cash flow—a good fit for volatile markets. For example, Gulf Development (GULF) and Global Power Synergy (GPSC) both continue investing in infrastructure, clean energy, and projects related to Data Centers, a key digital trend.
- Infrastructure and ICT: The boom in Data Center investments and digital economic growth boosts ICT stocks such as True Corporation (TRUE) and Advanced Info Service (ADVANC), the nation’s telco leaders and backbone of digital infrastructure.
- Refineries and oil: Both upstream and downstream energy companies are supported by high refining margins in the first two months of 2026 and potential stock gains, e.g., Bangchak Corporation (BCP), PTT Global Chemical (PTTGC), and Thai Oil (TOP). Sustained high refining margins would positively affect their short- to medium-term performance.
- Banks: The banking sector will benefit from broader economic growth, government investment, and loan recovery, with anticipated increases in net interest income and asset quality.
- Industrial estates: Foreign direct investment (FDI) and production relocations to Thailand support industrial estate stocks, particularly Amata Corporation (AMATA) and WHA Corporation (WHA), benefitting from rising demand for industrial land, warehouses, and manufacturing- and logistics-related infrastructure.
