Trade Uncertainty Not Enough to Justify More Weakness in Markets, Says Nomura’s McCafferty

The video discusses the current state of global markets, emphasizing the limited impact of trade wars on China's economy due to its reduced dependency on net exports. It highlights China's economic resilience and attractiveness compared to the US market, noting a significant discount in valuation. The video also explores the disparity in foreign investment between China and other East Asian markets, and the potential for increased investment driven by MCI rebalancing. Finally, it addresses the role of technology in the trade conflict, comparing US tech giants with their Chinese counterparts, suggesting China's relative insulation from US market dynamics.

How has China's dependency on net exports changed since 2006?

• It fluctuates annually.

• It has increased significantly.

• It has decreased significantly.

• It has remained the same.

What is the current discount percentage of Chinese stocks compared to US stocks?

• 25%

• 36%

• 50%

• 10%

What percentage of foreign ownership is typical in Chinese markets compared to Japan or Korea?

• Less than 10% in China, about 30% in Japan or Korea

• About 30% in China, less than 10% in Japan or Korea

• 50% in both China and Japan or Korea

• 20% in China, 40% in Japan or Korea

Which Chinese company is considered an equivalent to Google?

• Baidu

• Alibaba

• Tencent

• Huawei

What aspect of the trade conflict is highlighted in relation to Huawei?

• Textile manufacturing

• Automobile industry

• Technology components

• Agricultural exports