The View Beyond: China's post-Golden Week reality check

The Chinese equity market faces significant pressure as weak domestic demand and soft holiday spending contrast with strong export growth. Hong Hao, CIO of Lotus Asset Management, explains that authorities are currently meeting growth targets through exports, reducing the immediate necessity for aggressive stimulus. While the property sector remains in a structural decline, policy efforts focus on stability rather than speculation. Meanwhile, China’s technological advancements in DRAM and LLMs encounter increasing trade friction from the U.S. and Europe, though the biotech sector shows resilience. Despite current market pessimism, a contrarian stance suggests that the late-stage sell-off may be nearing its end, with potential opportunities in dividend-paying value stocks and innovative drug companies as the economy undergoes a necessary rebalancing.