1. Credit growth may slow in 2021, and that will likely mean slower growth numbers for the economy
China credit impulse (y-o-y growth), Dec 2010-Dec 2020
2. China’s V-shaped recovery appears to already be leveling off
China retail sales, exports, fixed asset investment (y-o-y, %), Jan 2020-Jan 2021
3. China sovereign yields continue to look good
10-year sovereign real yields compared, Dec 2010-Dec 2020
4. China’s bond market has grown in size and will likely keep growing
China onshore bond market, market cap (USD trillions), Dec 2015-Dec 2020
5. Inflows into China onshore equities look likely to continue growing.
Cumulative net buying of Southbound/ Northbound Connect since inception (In USD bn), Nov 2014-Nov 2020
6. China A-shares are becoming more institutionalized
A-share investor structure (% of total free-float market cap), 2013-2Q20
7. Retail investors still dominate A-shares, making turnover extremely high
Percent turnover across region (by year)
8. Analyst coverage of A-shares will remain low, opening opportunities to find underappreciated companies
Coverage of companies with USD 500m market cap
9. High yield spreads look attractive, and have the potential to close in 2021
High yield spreads compared, Dec 2013-Dec 2020
10. China will continue to be the driving force for the world economy for the foreseeable future
China’s contribution to global growth, 2019-2024
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