中国周刊-下跌1%，而A股上涨1%；李克强总理访问纽约；中国金融监管机构举行联合新闻发布会-China Weekly Kickstart_ MXCN lost 1; Premier Li visiting New York; Joint press conference held by Chinese financial regulators

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the performance of the MXCN and CSI300 indices, highlighting a mixed performance in the Chinese equity markets with MXCN losing 1% while A-shares gained 1% [1][1] - The call also notes the impact of macroeconomic factors, including President Xi's remarks at the UN Climate Summit and the joint press conference by Chinese financial regulators [1][1] Core Insights and Arguments - Market Performance: - MXCN lost 0.8% while CSI300 gained 1.1% this week, indicating a divergence in market performance [1][1] - The sectors that outperformed include Materials (3.5%) and Growth (3.7%), while Consumer Staples (-3.2%) and Value (-3.4%) lagged [2][2] - In A-shares, IT (3.6%) and Growth (3.5%) outperformed, while Consumer Staples (-3.7%) and Dividend Yield (-3.9%) lagged [3][3] - Earnings and Valuations: - The forward P/E ratios for MXCN and CSI300 are 13.6x and 14.7x, respectively [9][9] - The I/B/E/S consensus for EPS growth in 2025/26 is projected at 2%/16% for MXCN and 15%/13% for CSI300 [9][9] - Health Care and Materials sectors were revised up the most for both onshore and offshore markets [9][9] - Investment Flows: - Southbound Connect recorded US$5.6 billion in inflows this week, indicating strong foreign interest in Chinese equities [1][1][5] - Year-to-date, Southbound flows reached US$148 billion [5][5] Additional Important Insights - Policy Developments: - The Ministry of Industry and Information Technology (MIIT) released development plans for various industries, including building materials and steel [6][6] - A requirement for export licenses for Battery Electric Vehicles (BEVs) will be implemented starting January 2025 [1][1] - Market Sentiment and Seasonal Trends: - Historical data suggests that Consumer Staples and Real Estate tend to underperform in the week following the National Day holiday [10][10] - The report indicates a potential modest outperformance of A-shares over H-shares in the next three months based on proprietary models [28][28] - Geopolitical Context: - The US-China relations barometer indicates a score of 71, reflecting ongoing geopolitical tensions [30][30] - Recent meetings between President Xi and business leaders suggest a potential easing of policies towards private enterprises [32][32] - Investment Strategy: - The report emphasizes an overweight position in China onshore and offshore markets, with a focus on cyclical sectors [16][16] - The strategy includes a rotation from value to growth, highlighting sectors such as Internet/Media/Entertainment and Consumer Retail [16][16] This summary encapsulates the key points discussed in the conference call, providing insights into market performance, sector analysis, investment flows, policy developments, and geopolitical context.