11 December 2025 | 4:43PM EST Economics Research What's Top of Mind in Macro Research: Central bank cuts, holds, and hikes, US-China tech race, AI progress and doubts This week: Transcript Jenny Grimberg +1(212)934-0199 | jenny.grimberg@gs.com Goldman Sachs & Co. LLC Allison Nathan +1(212)357-7504 | allison.nathan@gs.com Goldman Sachs & Co. LLC Ashley Rhodes +1(212)934-4876 | ashley.rhodes@gs.com Goldman Sachs & Co. LLC G10 central banks: cuts, holds, and a likely hike The Fed delivered a widely expected 25 ...

Summary of Key Points from the Conference Call Industry Overview - The report discusses the performance of the Chinese equity market, specifically the MXCN and CSI300 indices, which gained 1.3% and 1.0% respectively this week, driven by strong performances in the Materials and Insurance sectors, which rose by 7.8% and 4.9% respectively [1][1][1]. Core Insights and Arguments - **Government Engagement**: President Xi met with French President Macron, indicating ongoing international diplomatic efforts [1][1][1]. - **Regulatory Changes**: The National Financial Regulatory Authority (NFRA) has reduced capital charges on select equity investments for Chinese insurers, which may enhance investment capacity [1][1][1]. - **Market Support Measures**: The People's Bank of China (PBoC) resumed expansion of Pledged Supplementary Lending in November, with a net increase of RMB 25.4 billion, marking a shift from previous contractions since March 2024 [1][1][1]. - **Investment Inflows**: The Southbound Connect saw inflows of US$1.5 billion this week, indicating positive sentiment among foreign investors [1][1][1]. - **PMI Data**: Official manufacturing PMI increased slightly, while non-manufacturing PMI decreased in November, reflecting mixed economic conditions [1][1][1]. Additional Important Information - **Market Valuations**: The 12-month forward price-to-earnings ratios for MXCN and CSI300 are 12.8x and 14.2x, respectively, with expected EPS growth rates of 4% and 13% for 2025 [8][8][8]. - **Sector Performance**: The Materials sector is highlighted as a strong performer, with a median return of 6.8%, while Real Estate lagged with a decline of 2.3% [7][7][7]. - **Upcoming Events**: Key upcoming events include the Central Economic Work Conference and various Politburo meetings, which may influence market direction [19][19][19]. - **Investor Sentiment**: The report indicates that Asian equities are experiencing strong risk-on flows, suggesting a positive outlook among investors [20][20][20]. This summary encapsulates the essential insights and data points from the conference call, providing a comprehensive overview of the current state of the Chinese equity market and relevant regulatory developments.