UBS with the note:
In a relative context, is it time to turn more positive on Chinese equities? The 18.8% fall in MSCI China this month, among the worst five months in the last 20years, has now wiped out the relative outperformance since early 2017. Structurally we like Chinese equities. Tactically we’ve been underweight. How does the underperformance but regulatory uncertainty play out for relative returns from here?
The motivation and direction of regulatory intervention holds the key
