- The MSCI China All Shares Index rose 33.4% in US-dollar terms, well ahead of the S&P 500's 18.4% returns as China's more aggressive response to COVID-19 aided the market.
- China's fourth-quarter GDP growth reached 6.5%, making the outlook for 2021 even more encouraging as consumer spending rebounds after initially lagging the manufacturing recovery.
- With the P/FE multiples of expensive stocks expanding aggressively, the valuation gap between spread growth and value stocks appears stretched, in our view.
For further details see:
China's Uneven Equity Rally Opens New Roads To Recovery