Every five years, China will have a new Politburo Standing Committee.
There are 7 members now, which are considered the most politically powerful people in China.
Not all members are new, some can stay for 2-3 term.
But the fight for becoming a new standing committee member can be quite intense.
There can be ripple effects across other areas in China.
Stock market can be quite sensitive to unknowns and turbulence.
To avoid uncertainties, it’s wise to stay away from it.
To compensate for staying on the sideline for about one year, the previous year can be quite a good year.
That seems to the case for the last 2 terms – 2017 and 2022 were the year of new committee selection. The “fight” could start in 2016 and 2021. Thus the “good” years were 2015 and 2020.
The next term is 2027. The “fight” could start in 2026 and 2025 was the good year. That seems to be the case so far.