Program and guest
Bloomberg Television’s The China Show (approximately 1 hour, 32 minutes and 36 seconds), featuring Morgan Stanley chief China equity strategist Laura Wang. This article covers Wang’s interview segment (approximately 59:32–66:11); it does not cover other parts of the program.
Key points
(The following paraphrases the guest’s remarks; timestamp links lead to the corresponding points in the original video.)
- Almost all of this year’s correction took place after August, and investors’ main concern is whether the market has bottomed. Compared with valuations during the financial crisis and early in the pandemic, there could still be 10% to 15% downside, but that does not mean the market must fall that far before bottoming. 60:12
- Hong Kong’s market is especially sensitive to tightening global liquidity. With the Hong Kong dollar linked to the US dollar and almost no capital controls, Hong Kong can readily become an “ATM” for global investors when global liquidity tightens. 61:04
- The current A-share correction differs from previous ones: most companies associated with the AI theme and the global hyperscale expansion theme are listed as A-shares, which explains the scale of the correction in the second half of the year. 61:18
- One trigger for last week’s sharp one-day drop in the Hang Seng Tech Index was an overreaction by offshore investors unfamiliar with the procedures surrounding a tax-payment deadline for a trust. In addition, margins at platform and e-commerce companies have come under pressure as consumption weakened. 61:35
Background and notes
The subtitles cover 0:00–1:32:36 (the full length is 1:32:36). This article covers Wang’s interview segment (approximately 59:32–66:11); it does not cover other parts of the program, including the segment with Leung of Stashaway and the One Earth summit segment. The views and timestamps are paraphrased from the original subtitles, and the timestamps mark the start of the corresponding passages.