The July Plenum gives the government a rare opportunity to tackle the lack of confidence by rekindling hopes of growth-friendly reforms, Standard Chartered analysts Shuang Ding and Hunter Chan note.

What to expect from the Third Plenum

"We expect the Plenum to reiterate the Party’s support of private-sector expansion as well as a stronger state sector, and the decisive role of the market in resource allocation."

"In addition, we think they’ll take steps to remove cross-region barriers, encourage innovation and green transition, and improve income distribution."

"We also expect them to attach greater importance to security, addressing risks in the housing and financial sectors and increasing the resilience of the supply chain. The market will likely pay close attention to potential fiscal/tax reforms that are essential for long-term sustainability."