Emerging Stocks Expected to Outperform, Daiwa Capital's Kitney Says

The video discusses recent fiscal and monetary policy adjustments in China, including budget deficit targets and special purpose bonds. It highlights the potential for interest rate cuts and the stabilization of the renminbi. The analysis of China A shares reveals financial risks and underperformance. Emerging market trends show currency rebounds and bond market improvements, suggesting a positive outlook for equities. The year is expected to be split into two halves, with relief in the first half and a focus on downturns in developed markets in the second half.

What recent fiscal policy change is indicative of a more relaxed approach towards macro stabilization?

• Increase in interest rates

• Approval of special purpose bonds for infrastructure

• Reduction in government spending

• Increase in tax rates

Why is there hesitation in increasing investment in China A-shares?

• Lack of government support

• High inflation rates

• Low market liquidity

• High net debt to equity ratio

What is a sign of returning confidence in the currency according to the transcript?

• Rise in interest rates

• Increase in foreign investments

• Rebound of emerging market currencies

• Decrease in inflation rates

What is the expected trend for emerging market equities this year?

• Significant downturn

• Stable performance

• Negative return

• Positive return

What is the anticipated focus in developed markets in the second half of the year?

• Increase in foreign investments

• Economic growth

• Significant downturn in activity

• Stable market conditions