China’s Industrial Inflection

MIIT’s 2026 Pivot and the Coming FAI Rebound

Good Morning,

China’s fixed asset investment story is about to change. After a dismal 2025 where FAI dragged on growth (down 3.8% YoY according to the National Bureau of Statistics), Beijing’s January policy blitz hints at an inflection point. The government is pivoting from building apartments and roads to building smarter factories and digital infrastructure.

We at Panda think this could transform FAI from an anchor into a market driver in 2026, catching many China investors by surprise. The headline numbers have been so ugly that most have stopped paying attention. That’s exactly when the setup gets interesting.

Do join us for this voyage of discovery.

IMPORTANT NOTE: We are presently in the process of getting a license with a regulator, and while that process is ongoing we are not able to publish the portfolio update and company notes. We’ll do a big reveal of the new plans as soon as we’re in a position to do so.

Nothing in this Substack is Investment Advice. This information is provided for informational purposes only and does not constitute financial, investment, or other advice.

2025: A Slump Conceals a Pivot

Last year’s headline FAI numbers were genuinely grim, but the breakdown tells a story of divergence rather than uniform collapse.