abrdn's Woon on Markets, Strategy

The video discusses the current state of Chinese equities, focusing on the market's rapid pricing in of reopening and the subsequent investor caution. It highlights consumption as a key growth driver for China, while emphasizing the need for selectivity in investments. The discussion compares onshore and offshore markets, noting the dominance of Chinese Internet names in the latter. It also addresses potential volatility and regulatory concerns, particularly regarding financial firms, and the lack of expected big stimulus from upcoming government sessions.

What is a key factor investors are watching in the Chinese market reopening trade?

• Interest rates in Europe

• The price of oil

• Pro-growth policies from the March session

• The performance of the US dollar

Which sector is highlighted as a key driver of growth for China this year?

• Real Estate

• Consumption

• Energy

• Technology

Why is the onshore market preferred over the offshore market?

• It has higher liquidity

• It provides a wide range of domestic consumption plays

• It is less volatile

• It offers better access to international brands

What is the base expectation from the March sessions regarding economic stimulus?

• No major stimulus due to a focus on sustainable growth

• A large-scale infrastructure investment

• A reduction in corporate taxes

• A significant increase in interest rates

What is a concern for investors regarding regulatory actions in China?

• Stricter environmental regulations

• Higher taxes on luxury goods

• Increased tariffs on exports

• Potential targeting of financial firms