CHINA’S renewable energy, defense and technology sectors are poised for a boost from the nation’s top political meeting which starts this week, in moves that could inject fresh impetus into the country’s sagging equities.

Measures to help achieve President Xi Jinping’s pledge of a carbon neutral economy by 2060 could be released at the meeting which begins Friday, according to brokerages including Guotai Junan Securities Co.

A likely expanding defense budget is also seen to be published at the National People’s Congress, Tianfeng Securities Co. analysts said.

Also topping analysts’ watch lists are policies to drive China’s economic growth in the post-pandemic era. Approval of a five-year plan, which includes strategies to cut dependence on the West for crucial components like computer chips and make bets on emerging technologies such as hydrogen vehicles, is expected.

China has repeatedly signaled a desire to reduce reliance on exports and expand domestic consumption under its “dual circulation” economic strategy.

Such plans could help arrest a recent equity selloff by investors worried about stretched valuations. The CSI 300 Index has lost nearly 8 percent since hitting its highest level since 2007 in February, one of the worst performers in Asia Pacific during the period.

Sentiment was further eroded Tuesday when China’s top banking regulator discussed the need to reduce leverage amid the rising risk of bubbles globally and in the local property sector.

“New policy directions from the meeting may provide fresh points of focus for the market, boosting sentiment,” wrote Essence Securities Co. analyst Chen Guo in a Monday note. “Historically, A shares had solid performance” during and in the week after the National People’s Congress, Chen added.

In September, President Xi announced a target for China’s emissions to reach net-zero in less than 30 years after peaking in 2030. Market watchers are anticipating the announcement of specific measures for the ambitious undertaking over the next five years.

China will need total investments of about 100 trillion yuan (US$15.5 trillion) to reach carbon neutrality by 2060, roughly equivalent to the country’s annual gross domestic product in 2020, wrote Goldman Sachs Group Inc. analysts including Hui Shan in a note last week.

Stocks to watch include wind farm operators China Longyuan Power Group Corp., China Datang Corporation Renewable Power Co., CGN New Energy Holdings Co., as well as solar firms Xinyi Solar Holdings Ltd., LONGi Green Energy Technology Co. and Tongwei Co.

Analysts also recommend electric vehicle supply chain companies such as battery maker Contemporary Amperex Technology Co., biodegradable plastic manufacturers like Kingfa Sci & Tech Co. and large waste treatment firms including Wangneng Environment Co. and Chongqing Sanfeng Environment Group Corp.

China has stressed the pressing need to make breakthroughs in cutting-edge technology such as microchips and other crucial components to reduce dependence on foreign products.

Technological self-efficiency could be raised to a higher priority during the National People’s Congress, market watchers say. That will benefit shares of high-tech manufacturing firms and chipmakers such as Avary Holding Shenzhen Co., Maxscend Microelectronics Co., Will Semiconductor Co. and Shenzhen Goodix Technology Co. (SD-Agencies)