BofA's Wu on China Equities Market

The video discusses the market rebound, valuation levels, and potential for multiple expansion in MSA China. It covers earnings growth, revisions, and sector analysis, highlighting opportunities and risks in various sectors like Macau gaming and big tech. The geopolitical impact on semiconductors and the theme of import substitution are explored. Investor sentiment remains bullish, with insights into market dynamics and the impact of the infection wave on the onshore market.

What is the current valuation level of the market in China compared to its historical high?

• 50% above the historical high

• 40% below the historical high

• At the historical high

• 20% below the historical high

What is the expected earnings growth for MSI China this year?

• 20% to 25%

• 10% to 15%

• 15% to 20%

• 5% to 10%

Which sector is considered overvalued due to concerns about cross-border money laundering?

• Semiconductors

• Healthcare

• Big tech

• Macau gaming

What is a potential risk for Internet companies despite leading the market rally?

• Regulatory approval

• Increased competition

• Structural derating

• Lack of innovation

What is a major theme driving the semiconductor sector in China?

• Import substitution

• Price reduction

• Export expansion

• Technological stagnation

What is the sentiment among Hong Kong-based investors regarding reopening-related names?

• They are expected to decline

• They are not well-positioned

• They have gone too far

• They are undervalued

Why did the onshore market in China not react as quickly as Hong Kong?

• Economic downturn

• Preoccupation with real-life challenges

• Government restrictions

• Lack of investor interest