HSBC's Fan on Asia Strategy

The video discusses the current state of China equities, highlighting the market's valuation and potential for growth. It examines the economic performance and the need for stimulus measures to stabilize domestic growth. The discussion also covers China's market position, potential growth areas, and the impact of geopolitical risks. Additionally, the video explores disinflationary trends and investment opportunities, particularly in global investment-grade bonds, as the Fed is expected to enter a policy easing cycle in 2024.

What was the expected GDP growth for China in 2023?

• 4.5%

• 7.0%

• 3.0%

• 5.3%

What is the main reason for the anticipated rerating potential in the second half of the year?

• Increased foreign investment

• Expected policy actions to stabilize domestic growth

• Rising inflation rates

• Decreasing service consumption

What is expected to add pressure on the Chinese government to introduce more stimulus measures?

• High unemployment rates

• Second quarter economic performance and mixed June data

• Rising property prices

• Decreasing export rates

What is the main factor contributing to the valuation discount in the China equity market?

• Geopolitical risk premium

• High inflation rates

• Strong economic growth

• Increased foreign investment

Which sector is mentioned as benefiting from policy tailwinds?

• Technology

• Healthcare

• Real estate

• Electric vehicles

What asset class is considered most attractive due to the disinflationary trend?

• Global investment-grade bonds

• Emerging market equities

• Cryptocurrencies

• Commodities

What is the expected policy action by the Fed in 2024?

• Implement quantitative tightening

• Maintain current rates

• Enter a policy easing cycle

• Increase interest rates