Rally in China’s A-Shares Has Some Legs to it, Says Stonehorn’s Le Cornu

The transcript discusses the current state of the market, highlighting its volatility and the role of retail investors. It examines the valuation of indices like CSI 300 and Shank com, noting that they are not expensive. The potential for long-term investment in I shares is explored, with a focus on Asia and China, despite concerns about corporate governance. The transcript also analyzes different sectors, noting that while some are experiencing cuts, others like consumer discretion and health care remain strong. The impact of liquidity, driven by record RMB loans, is also discussed.

What is a key characteristic of the market discussed in the first section?

• It is a stable and predictable market.

• It has a high premium for single-listed stocks.

• It is dominated by institutional investors.

• It is a momentum market dominated by retail investors.

Why is the Asian market, particularly China, considered under-owned?

• Due to low economic growth.

• Because of limited market access.

• Because of concerns about corporate governance.

• Due to high transaction costs.

What is a significant factor that could drive growth in the Asian markets?

• Higher interest rates.

• Decreasing population growth.

• More investors conducting deep dive research.

• Increased government regulations.

Which sector is mentioned as having a positive outlook despite the market rally?

• Energy

• Consumer discretion

• Real estate

• Utilities

What role do bank loans play in the recent market rally?

• They decrease market liquidity.

• They have no impact on the market.

• They contribute to the perception of risk and reward.

• They increase market volatility.