How will China’s annual legislative meetings affect the stock investor? Five key industries to watch

China is set to hold its most important annual political event this week, and it has big implications for stock investors of the Hong Kong and China markets.

The annual general assembly session of the legislature, known as the National People’s Congress (NPC), will kick off on Friday after an unprecedented delay of more than two months due to the Covid-19 outbreak.

The government will make public a raft of key economic targets, agenda and policies through its yearly work report and national budgets, for the thousands of political elites gathering in Beijing to review and approve.

Massive fiscal spending is widely expected by economists and analysts, as well as policy support for certain industrial sectors. The upcoming announcements could accelerate the long-term development of industries from infrastructure to health care, to 5G telecommunications, and affect the short-term stock prices of related listed companies.

Here are five sectors most likely to be affected by anticipated policies, and consequent stock investment opportunities:

Infrastructure

The government is set to invest heavily in infrastructure to shore up an economy mired in its worst quarterly slump in decades, as the coronavirus pandemic disrupted production and deterred consumption, analysts say. This spending will benefit companies from cement makers to toll highways and airports.