UBS Is 'Overweight' China Industrials, Materials: Liu

The video discusses the complexity of Chinese investments, particularly in Hong Kong, amid US delisting pressures. It provides forecasts for Chinese equities in 2021, highlighting the shift from multiples-led growth to earnings per share growth. The video also examines the significant trend of Chinese households allocating more assets into equities and discusses sector preferences, with a focus on industrials and telcos.

What is one of the main challenges for investors in the Chinese market due to US actions?

• Currency fluctuations

• Trade tariffs

• Increased interest rates

• Delisting of Chinese companies

What was the forecasted target for the CSI 300 index in 2021?

• 6500

• 5950

• 7000

• 5000

What is a key factor contributing to the need for market consolidation in 2021?

• Rising interest rates

• Decreasing foreign investments

• Overvaluation of certain stocks

• High inflation rates

What historical trend is observed when earnings growth becomes more plentiful?

• Multiples tend to expand

• Market volatility decreases

• Multiples tend to decline

• Interest rates increase

What is a medium-term driver for the demand in Chinese equities?

• Government subsidies

• Foreign direct investment

• Technological advancements

• Chinese households allocating more assets into equities

Which sector is most overweight in the model portfolio for 2021?

• Financials

• Industrials

• Healthcare

• Consumer Goods

Why is the internet sector underweight in the portfolio?

• Lack of innovation

• Antitrust concerns and new regulations

• Decreasing user base

• High operational costs