Daiwa Capital’s Kitney Is Overweight China With Small Overweight on Hong Kong

The video discusses the current state of the A share market, highlighting a period of stagnation after surpassing 3100. It explores the role of earnings revisions and global cues, including the trade war, in influencing market dynamics. The potential for a global equity market rally to end by June and its implications for China are examined. The video also analyzes the performance of specific sectors within the Chinese domestic market, particularly financials and real estate, in light of changes in PBOC policy and yield curve adjustments.

What is one of the main factors currently holding back the A share market?

• High inflation rates

• Negative earnings revisions

• Increased foreign investment

• Strong earnings growth

What is expected to happen to the global equity market rally starting in June?

• It will peter out

• It will stabilize

• It will accelerate

• It will remain unchanged

Under what condition might emerging markets decouple from developed markets?

• Strong U.S. dollar

• Low inflation

• High interest rates

• Weak U.S. dollar

Which sectors are well-placed within the Chinese domestic market according to the analysis?

• Energy and Utilities

• Technology and Healthcare

• Financials and Real Estate

• Consumer Goods and Services

What change in PBOC policy has positively impacted the financial sector?

• Increased interest rates

• Inverted yield curve

• Positive yield curve gradient

• Decreased lending growth