This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Multinationals Expect Gains With China's New Leadership

Stocks in this article: PG PEP

TAIPEI ( TheStreet) -- Every Chinese helmsman from Mao Zedong to Hu Jintao has made his own contributions and mistakes in plotting the Chinese economy. As early as next month, a group of new leaders will be seated.

Xi Jinping, a Communist Party school president who helped plan the Beijing Olympics and chart Hong Kong policy, will take over as president and party chairman from Hu. Wang Qishan, a former central bank vice governor and one-time Beijing mayor credited with pushing SARS out of Beijing in 2003, will be put in charge of economic policies.

Analysts with their ear to the dirty but always buzzing (new construction? more cars?) ground in Beijing expect these changes, and others, to the leadership of the world's second largest economy after the party holds its 18th National Congress from Nov. 8. The new team would officially take over as early as March.

Chinese leaders usually avoid announcing personal policy agendas, preferring at least in public the cloak of unity across different factions and generations. So it takes a few years to gauge what makes a new leader really new.

But there's consensus that the post-Nov. 8 team will do something fast about the country's increasingly ominous slowdown in economic growth, probably a series of moves to foster both consumption and manufacturing. Growth in either would be a welcome fix for multinationals with existing business in China (i.e., almost anyone you can name) but questions about where it's headed.

China is still growing enviably fast, but the Asian Development Bank said this month it had lowered its 2012 GDP growth guess from 8.5% to 7.7% and next year's from 8.7% to 8.1%. The low-interest lender said risks to the economy were "likely to intensify in the short run" because of soft global demand and the shaky health of China's trade partners.

Infighting over who's going to take which leadership job also has slowed down the one-party government's work, including formulation of economic policies. A highly public element of that in-fighting is the all-but-complete ouster of the outspoken, populist corruption-buster Bo Xilai. Once the infighting is out, stock markets from New York to Hong Kong should gain for a few weeks purely on sentiment that things won't get worse.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs