July 10, 2025 06:18 PM GMT China Musings | Asia Pacific Supply-Side Reform Returns... But This Time It's More Complicated China's capacity consolidation campaign may be returning – but we see this as new wine in an old bottle. The industrial landscape and macro environment are fundamentally more difficult than in 2015-18, meaning implementation will likely be slower. We maintain a persistent deflation baseline into 2026. 1. Introduction: "anti-involution" returns In recent years, the concept of "involution" ...

China Equity Strategy | Asia Pacific A-Share Sentiment Improves with Anti-involution Message Sentiment improved with the government's clearer message on anti-involution, aimed at reining in the escalation of excess competition and potential overcapacity. We still expect near- term volatility to rise and range-bound index moves in the offshore market. We prefer A-shares over offshore for now. A-share investor sentiment improved vs. previous cycle: Weighted MSASI and simple MSASI improved 7ppt and 8ppt, to 78 ...

ab 3 July 2025 Global Research First Read We think investors may have overly priced in potential price upside from anti-involution initiates, while overlooking the structural demand weakness and obstacles to industry consolidation. We maintain our cautious view on the China cement sector. Equities China Building Materials China Cement Sector Expert call takeaway: "lie flat" no good for long- term consolidation No new policy We hosted a call with Digital Cement analyst, Ms. Xiaoliang Wang, to dive into the t ...