2019 Will Be a Challenge for China, Global Markets, Says CMC Markets's Yang

The video discusses the current state of Chinese stocks, highlighting the challenges posed by global economic slowdowns and trade tensions. Despite low valuations cushioning the downside, the market's performance depends on the extent of stimulus plans. The monetary policy is expected to remain accommodative, but massive easing is unlikely. The China market's low correlation with global markets and its policy-driven nature are emphasized, with a need for constructive fiscal stimulus to boost performance.

What factors are cushioning the downside of the Shanghai Composite?

• Retail investor confidence

• High valuation and strong earnings

• Low valuation and policy stimulus

• Trade tensions and global demand

What is the expected approach of China's monetary policy this year?

• Massive monetary easing

• Strict monetary tightening

• Accommodative with targeted stimulus

• Complete deregulation

Which sectors are likely to benefit from China's targeted monetary stimulus?

• Foreign investors

• Private sectors and SMEs

• Large corporations

• State-owned enterprises

How does the Chinese market's correlation with global markets affect its performance?

• It is highly dependent on European markets

• It has low correlation and is policy-driven

• It mirrors global economic cycles

• It closely follows US market trends

What is necessary for the Chinese market to perform well in 2019?

• Constructive fiscal stimulus and liquidity measures

• Stronger correlation with US markets

• Increased retail investor participation

• Higher global demand