Morgan Stanley's Wang on Chinese Markets Outlook

The video discusses the cautious stance on the China equity market due to earnings deterioration and valuation concerns. It highlights a preference for the India market, citing regulatory tailwinds and manufacturing upgrades. The analysis covers market valuation, tech sector impact, and macroeconomic headwinds. Regulatory risks, including potential delisting of ADRs, are examined. Market targets for next year are set based on valuation levels and earnings growth expectations.

What was the main reason for the preference towards the Indian share market over China?

• Stronger GDP growth

• Higher internet exposure

• Better alignment with regulatory tailwinds

• Lower manufacturing costs

What is the current market valuation for China in terms of forward PE?

• 18 times

• 10 times

• 13 times

• 15 times

What potential risk is associated with ADRs in the context of regulatory changes?

• Increased market volatility

• Delisting risk

• Currency devaluation

• Higher transaction fees

What is the expected earnings growth for MSC China next year according to the speaker?

• 10%

• 13%

• 20%

• 17%

How does the speaker suggest the consensus on earnings growth should change?

• It should remain the same

• It should be ignored

• It should increase

• It should decrease