Equity Strategy - China: Light positioning, watching catalysts - Singapore investors’ feedback

Research evidence excerpt

Equity Strategy - China: Light positioning, watching catalysts - Singapore investors’ feedback

edback: bubble,

fade like the previous rebounds. We remain cautious on the read-through to rotation, and the A-share style, May

consumption, unless we see a more broad-based and significant rise in property prices. 15th

Memory: positioning not stretched? Missing is career risk Why has China underperformed –

As discussed in our China Conference feedback (link), market concerns about an AI earnings and beyond, Apr 28th

bubble have declined. HFs adopting AI tools are seeing real productivity gains, with AUM

rising much more than headcount. Tech specialists are more confident than generalists Stay bullish on AI hardware & export

on memory supply shortage and pricing power. Has positioning become too crowded? SK growth: onshore investors’ feedback,

Hynix, nearly USD1tn in market cap, still has risen 5-10% a day – suggesting continued Apr 20th

sizeable inflow. Some LOs admit that they remain underweight, either reluctant to chase

or sold too early – seasoned investors tend to be more cautious about the “cyclical/ 2Q26: play defensive, awaiting for

commodity” nature of the space. Therefore, positioning may not be as stretched as positive catalysts, Apr 2nd

feared. Anecdotally, some EM funds have shut down recently for underperformance – R.E.A.L. moats amid AI shockwaves,one HF client put it bluntly: “it is no longer just opportunity cost, it’s a career risk”.

Mar 16th

Policy risk: less geopolitical, more domestic

With low expectations going into the Xi-Trump summit, investors were not disappointed

either. “Strategic stability” in US-China relations should help contain tail risks for the

Glossary:market in the next 4-5mths. That said, China’s crackdown on unlicensed cross-border