UBS’s Liu Likes China Brokers, Property, Internet

The video discusses potential market stimuli, including a trade deal and MSCI China Asia inclusion, which could support a market rally. It analyzes the CSI 300 index targets and the impact of inclusion dates. The discussion also covers sector opportunities, highlighting overweight positions in brokers, property, and internet, while underweighting China banks. The impact of MSCI inclusion on fund flows and indices is also examined.

Which factor is mentioned as potentially supportive of a domestic market rally?

• A decline in consumer spending

• A decrease in interest rates

• A rise in oil prices

• Additional stimulus and a trade deal

What is the stretch target for the CSI 300 index mentioned in the transcript?

• 3500

• 3800

• 4042

• 4500

Which sectors are identified as having the most potential upside?

• Consumer staples and banks

• Property and Internet

• Energy and utilities

• Healthcare and pharmaceuticals

What is the main challenge mentioned regarding the MSC All China indices?

• Difficulty in catching up with research

• Regulatory hurdles

• High transaction costs

• Lack of investor interest

What is the reason given for the delay in the transition of MSC All China indices?

• Regulatory approval

• Technical issues

• Reorganization of the indices

• Market volatility