UBS On-Air: Market Moves
Top of the Morning: Chinese equities - Comeback or a head fake?
May 14, 2024
Xingchen Yu, Emerging Markets Strategist, discusses the recent surge in Chinese equities, investor interest, current state of China equities, bullish indicators, and market considerations. Highlights include minimizing exposure amidst trade tensions, analyzing macroeconomic factors, and emphasizing client connections.
14:53
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Quick takeaways
- Chinese equities rebound due to positive economic data and supportive policies.
- Investors should remain cautious due to macroeconomic weaknesses and trade tensions.
Deep dives
Factors Contributing to the Rebound in Chinese Equities
The recent rebound in Chinese equities is attributed to various factors. Chinese equities had corrected significantly since early 2021 due to multiple reasons such as the impact of COVID-19, domestic shocks, structural shifts, and geopolitical risks. However, recent performances show major Chinese equities indices have surged, with double-digit returns in a short period. Factors like positive first-quarter economic data, supportive macroeconomic policies, and policy developments in capital markets have driven this rebound.
