The reform agenda China released after the Third Plenum fell short of market expectations, Reuters reported. The communiqué following the secret leadership meeting listed several target areas for reform, but its language was more vague than some had expected and it explicitly underscored the importance of the state sector in the economy. But rather than lift state firms that dominate major benchmark indexes in China and Hong Kong, it spurred worries that it would leave them exposed once the authorities made good on their pledge to give markets a “decisive” role in the economy.
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