China Market

(Maybank TV) China: Shoring up investor confidence
Maybank TV interviews Benny Wong, investment analyst at Maybank-KE, who shares insight on China’s effort to shore up investor confidence amid the recent selloff.

Overview:
Last week, the government has continued to introduce measures to save the A-share market, e.g. banning major shareholders from selling their stakes within a six-month period.

Many A-shares have also halted trading. On that front, investors are advised to avoid A-shares in the interim, as sell-off pressure in halted stocks may continue once trading resumes.

The A-share halt has also sparked a selloff in H-shares. This was in part due to foreign hedge fund managers selling H-shares to raise cash/ reduce exposure.
If the selloff worsens, QE could be one of the most extreme measures. If so, the liquidity pumped into the market would be used to buy equity instead of bonds as seen in the US and EU.

Still, instead of picking a bottom, investors could be better off waiting for a meaningful rebound to avoid unnecessary risks. The Chinese infrastructural play is a good way to ride the rebound, via names such as China Railway (390 HK) Angang Steel (347 HK) andChina Coal (1898 HK)

The video can be accessed via the following link below:
https://www.youtube.com/watch?v=nWg6wz-TZj4