China and US Equity Analyst

Roger Xie

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US market.

Cross Asset Strategy

<p>China would step up the effort to stimulate its faltered economy by raising the fiscal deficit ratio and selling special government bonds, as President Xi spoke in the China Politburo meeting on March 27, 2020. This high-profile thought-leadership meeting has set the tone to turn more aggressive pro-growth stance in China as the coronavirus weighs heavily on the global economy and on China’s exports. The importance of the meeting is to propose a lot of focus on demand stimulus.  We expect government ministries to roll out more tangible measures in the coming weeks as this Politburo meeting has given them the guidance. As China has shown the sign of controlling the spread of coronavirus in recent days, it is beginning to open back up for business. The broad market benchmark CSI300 Index is traded at 9.3x forward P/E,  a similar level at 2016 market low. We continue to be sanguine at China A-share market <a href="https://www.smartkarma.com/entities/ftse-china-a50-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:22905:1">FTSE China A50 Index (XIN9I INDEX)</a> and favor domestic consumption oriented sector in the short-term. In this report, we also shown some of the latest disclosures from Multi National Corporates, such as <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" rel="noopener" data-smartkarma-citation="entities:23677:1">Yum China Holdings, Inc (YUMC US)</a>, <a href="https://www.smartkarma.com/entities/starbucks-corp" target="_blank" rel="noopener" data-smartkarma-citation="entities:7641:1">Starbucks Corp (SBUX US)</a> and <a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" rel="noopener" data-smartkarma-citation="entities:6658:1">Nike Inc Cl B (NKE US)</a>  operation during the peak of coronavirus in China in February, which could help to give a glimpse of navigating the coronavirus in US and other market. </p>

China would step up the effort to stimulate its faltered economy by raising the fiscal deficit ratio and selling special government bonds, as President Xi spoke in the China Politburo meeting on March 27, 2020. This high-profile thought-leadership meeting has set the tone to turn more aggressive pro-growth stance in China as the coronavirus weighs heavily on the global economy and on China’s exports. The importance of the meeting is to propose a lot of focus on demand stimulus.  We expect government ministries to roll out more tangible measures in the coming weeks as this Politburo meeting has given them the guidance. As China has shown the sign of controlling the spread of coronavirus in recent days, it is beginning to open back up for business. The broad market benchmark CSI300 Index is traded at 9.3x forward P/E,  a similar level at 2016 market low. We continue to be sanguine at China A-share market FTSE China A50 Index (XIN9I INDEX) and favor domestic consumption oriented sector in the short-term. In this report, we also shown some of the latest disclosures from Multi National Corporates, such as Yum China Holdings, Inc (YUMC US), Starbucks Corp (SBUX US) and Nike Inc Cl B (NKE US)  operation during the peak of coronavirus in China in February, which could help to give a glimpse of navigating the coronavirus in US and other market. 

China A-Share Strategy: To Revive Economic Growth as Getting past Coronavirus