What an Extension of Xi's Reign in China Means for Investors

The removal of presidential term limits should guarantee one thing for investors -- their China portfolios will be increasingly tied to one man.

Markets initially welcomed China’s plan to change its constitution on Monday, a move that would allow Xi Jinping to rule beyond 2023. Analysts say the political certainty should be largely positive for Chinese assets as it bolsters the president’s ability to drive through policies, such as those related to the deleveraging and anti-pollution campaigns. The absence of checks and balances, though, raises the risk of policy errors.