On the surface, a stock market boom in China has little in common with a food delivery turf war in São Paulo. Yet, the state-driven frenzy lifting Chinese stocks and the bare-knuckle brawl between Meituan (3690.HK) and DiDi both spring from the same source: a unique domestic ecosystem whose characteristics the world is only now beginning to fully comprehend.The numbers behind China’s stock rally are indeed remarkable. Over the last 52 weeks, the benchmark Hang Seng Index has soared by 40%, with the Shanghai ...

Summary of Key Points from the Conference Call Industry and Company Involved - **Industry**: Sustainability and Decarbonisation in China - **Company**: Morgan Stanley Asia Limited Core Insights and Arguments 1. **Anti-Involution Campaign**: China's "anti-involution" campaign is a significant focus for investors, aiming to address price wars and overcapacity in key sectors crucial to decarbonisation goals [2][7][9] 2. **Decarbonisation Impact**: The anti-involution drive is expected to influence decarbonisation progress both within China and globally, particularly in "hard-to-abate" sectors such as cement, steel, and aluminium [2][10] 3. **Investor Interest**: There is a renewed investor interest in sustainability fund flows and energy transition themes in China, with an uptick in inflows into sustainability funds observed in Q1 2025 [3][9] 4. **Policy Signals**: Recent policy signals from China indicate a focus on tackling overcapacity, with discussions on various sectors including solar, materials, and new energy vehicles (NEVs) [8][10] 5. **Global Decarbonisation**: China's clean energy exports, including solar panels and electric vehicles, are projected to significantly reduce global CO2 emissions, with an estimated reduction of 220 million tonnes in 2024 alone [12] 6. **Competition Dynamics**: The current intense competition in China's cleantech sectors has kept decarbonisation costs low for other countries; however, a reduction in competition could lead to increased costs for these technologies abroad [13] Other Important but Potentially Overlooked Content 1. **Capacity Reduction Focus**: The focus on reducing old and dirty capacity in hard-to-abate sectors is a recurring theme, with the government actively checking for overproduction in coal and other sectors [10][12] 2. **Trade Reliance**: Many countries still rely on Chinese products for their decarbonisation efforts, which could face headwinds from trade tensions [12] 3. **Renewable Energy Standards**: New solar capacity built between 2022-2024 has already adopted new emission reduction standards, indicating progress in the sector [11] 4. **Long-term Investment Story**: China's decarbonisation remains a long-term secular investment story, with consistent emphasis on its relevance since 2020 [9] This summary encapsulates the critical insights from the conference call, highlighting the implications of China's anti-involution campaign on sustainability and decarbonisation efforts.

Rivian sues to sell its EVs directly in Ohio | TechCrunch https://t.co/zpxTSnqhxv ...

Xiaomi’s success in EVs is partly down to being in the right place at the right time. But its chief executive also deserves plenty of credit https://t.co/LOR55rq5h8 ...

Rivian taps Google to bring custom maps into its EVs and app | TechCrunch https://t.co/MwhPUHCH4M ...

Investment Rating - The report indicates a preference for offshore markets (Hong Kong + ADR) over A-shares due to better single stock opportunities and sector composition [10][11]. Core Insights - Investor sentiment towards China has improved, with a higher willingness to allocate to Chinese equities, particularly in Tech and New Consumption sectors [2][3]. - The A-share market has underperformed compared to the Hong Kong market, with the CSI 300 down 1.5% YTD as of June 6, 2025, while the Hang Seng and MSCI China indices are up 19% and 16% respectively [8][10]. - The report highlights that China's investability has improved, with new technologies and business models attracting significant investor interest [4][5]. Summary by Sections Investor Sentiment - Investors are increasingly interested in adding exposure to Chinese equities, acknowledging that their current exposure is low, with a 2.4 percentage point underweight in Chinese equities compared to the MSCI EM benchmark [3]. Market Performance - The divergence in performance between A-shares and offshore markets is attributed to several factors, including the concentration of high-quality companies in the MSCI China index and muted liquidity support for the A-share market [10][11]. Sector Composition - The MSCI China index has a higher concentration of high-ROE companies in sectors like Internet, financials, and IT, while the A-share market is more exposed to sectors constrained by macro conditions [10]. Technological Advancements - China's advancements in technology, particularly in AI and electric vehicles, have shifted investor perceptions, leading to a renewed interest in the potential of Chinese tech companies [5][4]. Economic Outlook - The report anticipates a persistent deflationary environment in China through 2025 and 2026, with limited stimulus expected from Beijing [11][12].