Investors' Risk Aversion to Chinese Equities Is Overdone, Says UBS' Hu

The video discusses the current state of China equities, highlighting the impact of CNY depreciation and tight credit data on market sentiment, which is at its lowest since 2016. Despite this, fundamental analysis suggests an overreaction, as corporate profits and user activity are recovering. The discussion also covers the effects of liquidity changes and interest rate cuts, particularly the RRR cut in June, which improved liquidity. The government aims to balance stability and deleveraging, with policy adjustments expected to ease conditions. Asset management rules and slow bank lending are also addressed.

What factors have contributed to the current sentiment toward equity in China?

How have corporate profits and user recovery been described in the context of the current economic situation?

What is the significance of the liquidity changes mentioned since the triple cut in June?

What are the expectations regarding future cuts in the context of the current economic policies?

What balance is the government trying to strike according to the analysis?