UBS Thomas Fang Discusses Outlook for Chinese Equities

The video discusses the current state of the Chinese market, highlighting the risks and rewards associated with investing in Chinese stocks. It covers the impact of monetary policies, particularly the PBOC's actions, on the property sector and overall liquidity. The video also examines the disappointing earnings season and economic slowdown expected in Q4 and Q1, with a potential recovery in Q2. It explores the prospects for the innovation and tech sectors, including the role of the Beijing exchange. Finally, it analyzes the export sector's performance, noting strong growth driven by global demand.

What sectors are considered attractive due to policy tailwinds and growth potential?

• Green Tech and consumer growth

• Automobile and healthcare

• Banking and finance

• Agriculture and mining

What monetary policy action is expected towards the end of the year?

• Increase in interest rates

• Reduction in reserve requirement ratio

• Introduction of new taxes

• Ban on foreign investments

What is a major challenge faced by the property sector in China?

• High demand for new properties

• Overproduction of housing units

• Access to the dollar bond market

• Excessive government subsidies

What is the expected economic trend for China in Q4 and Q1?

• Economic recession

• Rapid economic growth

• General economic slowdown

• Stable economic conditions

What is a potential catalyst for a bounce in Chinese equities?

• Rise in commodity prices

• Increased foreign investment

• Decrease in global demand

• Continuous policy stabilization

What is the expected impact of the Beijing exchange on smaller companies?

• Decrease in market competition

• Reduction in innovation

• Increased opportunities for listing

• Higher regulatory barriers

What is the growth expectation for the export sector in 2021?

• Negative growth

• Single to double-digit growth

• No growth

• Triple-digit growth