Investors Are Meaningfully Underweight in China: Nomura

The video discusses the divergence between Chinese and US stock markets, highlighting the PE ratio differences and growth potential. It addresses the risks associated with investing in China, such as the tech crackdown and underexposure in global portfolios. The video also covers market reactions to COVID developments, government interventions, and the significance of stock markets as indicators of soft power. It explores the rotation between tech stocks and cyclicals, emphasizing the growth and dividend potential of companies like TSMC. Finally, it examines the Japanese market, focusing on shareholder agitation and challenges during the AGM season.

What is the current price-to-earnings (PE) ratio for Chinese markets compared to the US?

• 20 times for both China and the US

• 23 times for China, 15 times for the US

• 15 times for China, 23 times for the US

• 10 times for China, 30 times for the US

What is one of the main risks that investors consider when investing in China?

• High inflation rates

• China Tech crackdown

• Lack of technological advancement

• Overvaluation of Chinese stocks

What percentage of global portfolios is typically invested in China's debt or equity?

• Less than 5%

• 10%

• 15%

• 20%

Which company is mentioned as a significant part of the Taiwanese stock market?

• Samsung

• TSMC

• Sony

• Intel

What challenge do Japanese companies face during COVID-19 according to the transcript?

• Increased competition from China

• Difficulty in conducting due diligence

• High employee turnover

• Lack of government support