BlackRock Favors China A-Shares, Strategist Taw Says

The video discusses the recent rally in Chinese equities, driven by factors like bond market sell-offs and liquidity. It compares the Chinese market rally with the US, highlighting differences in growth projections and investor behavior. The video also explores investment strategies in Chinese equities, focusing on onshore and offshore opportunities. Additionally, it examines the impact of the MSCI deal and Hong Kong's security law on market dynamics.

What are some factors driving the recent rally in Chinese equities?

• Increased bond market investments

• Decrease in foreign investments

• Liquidity-driven market and attractive valuations

• Rising virus cases in China

How does the rally in Chinese equities differ from that in the US?

• Chinese rally is based on long-term growth projections

• US rally is a new trend

• US rally is driven by short-term data

• Chinese rally is due to decreasing virus cases

Why is there a preference for onshore A-shares among investors?

• They provide diversification benefits

• They are not included in global indexes

• They are less volatile than offshore shares

• They offer higher returns than offshore shares

What impact is the MSCI deal expected to have on Hong Kong?

• Reduction in IPOs

• Improved fund flows into Hong Kong

• Decrease in foreign investments

• Increased market volatility

How are investors reacting to the security law in Hong Kong?

• They are investing more in Europe

• They are focusing on short-term data

• They are looking at long-term growth expectations

• They are pulling out of the market