Chinese Equity Valuations Getting Tight: JPMorgan’s Leung

The video discusses the current state of the Chinese equity market, highlighting the relative valuation between equities and bonds. It explores investment strategies focusing on income-oriented equities and identifies sectors with potential for sustainable dividend growth. The impact of China's economic recovery on earnings growth and sector valuation is also examined, suggesting a narrowing gap between growth-oriented and traditional sectors.

What is one reason for the sluggishness in the Chinese equity market?

• High bond yields

• Lack of market liquidity

• Government regulations

• Slightly expensive equity valuations

What strategy is being emphasized for repositioning in the Chinese equity market?

• Value investing strategies

• Short-term trading strategies

• Income-oriented strategies

• Growth-oriented strategies

Which sectors are identified as having potential for sustainable dividend growth?

• Technology and healthcare

• Energy and telecommunications

• Consumer durables and industrials

• Financials and real estate

How is the economic recovery in China expected to impact earnings growth?

• It will have no impact

• It will decrease earnings growth

• It will lead to a broad-based earnings growth

• It will only benefit the technology sector

What is expected to happen to the earnings growth gap between growth-oriented and traditional sectors in 2021?

• It will widen significantly

• It will disappear completely

• It will remain the same

• It will narrow