CMB International Daniel So: Bullish on Chinese Stocks

The video discusses the valuation of the handset index, noting its similarity to past crisis levels and the impact of Beijing's easing policies. It highlights the ongoing regulatory risks affecting the market, particularly in the Internet sector, and suggests that the market has priced in most risks. The video also covers the Internet sector's growth outlook, inflation trends, and recommends rotating investments from upstream to downstream sectors. Finally, it advises selective investment in the property market, focusing on quality names with strong financials.

What is the current trading level of the handset index compared to previous crisis drops?

• 1.0 times

• 2.0 times

• 0.5 times

• 1.5 times

What is expected to drive momentum in the China market according to the first section?

• Tightening by Western central banks

• High inflation rates

• Aggressive easing by Beijing

• Increased regulatory risks

What is the main factor that has dragged down the market since the third quarter?

• Regulatory risk

• High inflation

• Currency devaluation

• Low consumer demand

Which sector is believed to have priced in many negatives since last November?

• Consumer staples

• Real estate

• Manufacturing

• Internet

What is the expected PPI inflation rate for next year?

• Exactly 4%

• Below 4%

• Above 6%

• Around 5%

Which type of players are expected to benefit from easing cost pressures?

• Real estate developers

• Downstream players

• Upstream players

• High-tech companies

What is the catalyst for a potential rerating in the real estate sector?

• Increase in foreign investments

• Easing of housing policies by Beijing

• Decrease in interest rates

• Rise in property prices