Feb. 15 at 1:37 AM
PickAlpha Weekend-
China equities are losing momentum as earnings and macro both softened into Lunar New Year. Q4 pre-announcements from over 2,000 A-shares showed negative alerts outnumbered positives by 14.8% (vs. -4.8% in Q2), while growth cooled to 4.5% YoY, January PPI stayed in deflation at -1.4% YoY, and recent PMIs pointed to weaker underlying demand. With January–February data bundled and major policy signals likely delayed until the March NPC, investors are questioning whether holiday spending can deliver the usual earnings lift.
Tickers:
$MCHI $FXI $BYDDY
Our view is this is an earnings-revision market, not a broad beta-up market. If post-holiday consumption and March policy headlines underwhelm, downside risk stays highest in consumer/EV and smaller caps; if policy over-delivers, leadership is more likely in resource names and policy-favored AI supply-chain names than in the full China index.
