JPMorgan’s Zhu Says Valuation in Chinese Market Becoming Less Attractive

The video discusses the ongoing trade discussions between China and the US, highlighting the potential for a partial deal and its impact on market sentiment. It examines the valuation of Chinese A shares, noting that while they are still attractive, the momentum is weakening. The video also addresses market volatility, driven by trade talks and domestic policies, and identifies potential risks such as low PPI inflation and China's debt issues.

What are the main hurdles remaining in the China-US trade discussions?

• Environmental regulations

• Intellectual property rights

• Enforcement mechanisms and tariff removals

• Currency exchange rates

Why are Chinese A shares initially considered attractive?

• High liquidity

• High dividend yields

• Low initial valuations

• Strong government backing

What is a concern that could affect the stability of the equity market?

• High inflation rates

• PPI inflation staying low

• Strong currency appreciation

• Increased foreign competition

What has been driving the volatility in the equity market recently?

• Technological advancements

• Trade talks and domestic expectations

• Rising interest rates

• Global oil prices

What economic issue might resurface later this year, affecting market outlook?

• Decreasing foreign investments

• Rising unemployment

• China's debt problem

• Increasing trade deficits