**Innovation and Growth** China aims for solid growth from 2026 to 2030, planning to use technology to boost productivity. More funds may be directed towards improving people’s wellbeing to stimulate consumption. Additionally, China is looking to increase the international use of the Renminbi (RMB). The upcoming 15th Five-Year Plan will likely focus on growth. There are discussions about setting a target growth average of 4.7-4.8% for 2026-30 to double the 2020 GDP by 2035, but details are still unclear. This projected growth is higher than what the market expects, and supportive policies are likely to be introduced. Innovation will be key to improving overall productivity, especially with an aging population and restrictions on technology from the West. The government will encourage private sector research and development (R&D) spending, taking advantage of China’s talent in science, technology, engineering, and mathematics (STEM). Investments in renewable energy may also continue to help achieve peak carbon emissions by 2030, with strategies aimed at increasing domestic demand and redistributing income to low-income groups. Over the next five years, authorities may promote the use of the Renminbi in international trade and investment, making RMB assets more attractive. New cross-border payment options might be explored, with Hong Kong being a key offshore financial center. **Economic Indicators and Market Strategies** As China prepares for the 4th Plenary Session from October 20-23, it signals a focus on achieving higher growth than expected in its next five-year plan. Recent GDP data for Q3 2025 shows a strong 4.9% growth, and a formal announcement promoting growth could trigger a market rally soon. Traders may want to consider purchasing November call options on the FTSE China A50 index to capitalize on this potential increase. The emphasis on tech innovation and green energy presents unique opportunities in these areas. China’s R&D spending as a share of GDP has steadily increased, reaching a record 2.65% in the latest data for 2024. This upward trend is expected to continue. Investors could benefit by buying call options on clean energy exchange-traded funds (ETFs) like the KraneShares MSCI China Clean Technology Index ETF (KGRN) or on major Chinese tech companies to take advantage of new policies that support these sectors. A growth target around 4.7% will require substantial industrial activity and investment, significantly affecting global commodity markets. Copper prices have been responsive to signals from China this year, and a strong announcement from the Five-Year Plan could lead to a price surge. Going long on December copper futures or buying call spreads on copper ETFs may offer an attractive risk-reward scenario for benefiting from increased demand. Lastly, efforts to internationalize the Renminbi indicate a preference for a stable or stronger currency to draw foreign investment. The RMB’s share of global SWIFT payments recently reached a new high of 4.81% in August 2025, and this focus on policy is likely to continue to support that trend. Investors could find value in positioning for a lower USD/CNH exchange rate by selling out-of-the-money call options, betting that this currency pair will remain influenced by official policies. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now