DWS APAC Chief Investment Officer Sean Taylor on China's Equity Underperformance

The transcript discusses market expectations, particularly regarding the PBOC's policy stance and its impact on credit tightening. It highlights challenges in market pricing and economic forecasts, especially in China. The momentum in Hong Kong markets and the sustainability of the rally are examined, along with the need for policy clarity and earnings outlook. Global earnings and market trends are compared, with a focus on Asia, the US, and Europe. China's potential performance and its impact on global markets are analyzed, considering factors like the Olympics and renminbi stability. Finally, investment opportunities in Asia, particularly in India and Japan, are explored.

What is the expected timing for the PBOC to ease its policy?

• Third quarter

• Second quarter

• First quarter

• Fourth quarter

What is a key factor that could change the underweight view on China's market?

• Improved global economic conditions

• Increased foreign investment

• Proper pricing of next year's earnings

• Reduction in supply chain issues

What is a significant challenge for the Internet sector in Hong Kong?

• High competition

• Decreasing user base

• Regulatory uncertainty

• Lack of innovation

Why have earnings estimates in Asia fallen compared to global peers?

• Higher inflation rates

• More lockdowns and less stimulus

• Increased competition

• Currency devaluation

What could potentially lead to China outperforming next year?

• Higher foreign investment

• Increased exports

• Strong domestic travel

• Early policy easing

Which country is seeing significant investment driven by local investors?

• India

• Japan

• Indonesia

• Malaysia

What is a potential catalyst for Japan's market according to the analysis?

• New trade agreements

• Technological advancements

• Increased tourism

• Upcoming elections and fiscal stimulus