According to the Sina Finance app, Vanessa Fan, Chief Investment Officer of HSBC Global Private Banking and Wealth Management in the Asia Pacific region, shared her investment views on China's economic stimulus plan. She maintains a neutral view on mainland China and Hong Kong stocks, and believes that high-quality industry leaders with low valuations provide short-term rebound opportunities. These quality companies have strong profitability, some of which have the potential to increase shareholder returns through increased dividends and share buybacks. Comparing the 12-month P/E ratios of MSCI World Index and S&P 500 Index at 20x and 21.7x respectively, while Hang Seng Index and MSCI China Index currently have 12-month P/E ratios of 9.4x and 9.5x respectively, indicating significant undervaluation.

On September 24, the People's Bank of China, China Securities Regulatory Commission, and the China Banking and Insurance Regulatory Commission jointly announced the launch of a comprehensive economic stimulus plan, reflecting the Chinese government's strong urgency to restore market confidence and adopt a more active loose monetary policy. The scale and pace of this new round of easing policies exceed conservative market expectations.

The down payment ratio for second homes unexpectedly decreased from 25% to 15%, consistent with first-home mortgages, indicating a potential shift in real estate policies. Moving away from the previous emphasis on long-term stance of discouraging speculation in property, welcoming investors to enter the market for home purchases. The convenience scale of re-lending for affordable housing has been increased to 300 billion RMB, which should help accelerate the destocking of unsold housing.

Bullish on high-quality high-yield state-owned enterprise stocks, as well as blue-chip technology leaders with solid profits and valuations far below global peers like NetDragon. As for the Hong Kong market, bullish on undervalued high-yield stocks in the insurance, telecommunications, and utilities sectors, as well as select oversold yet financially sound real estate developers.

In terms of bonds, it is expected that China's long-term low-interest environment will support mainland investment-grade bonds. However, the current 10-year Chinese government bond yield is at a historical low of 2%, hence there is limited downside potential. Maintaining a neutral view on Chinese Renminbi bonds and major currency bonds. Keeping a neutral view on the US dollar against the Renminbi, predicting it to be 7.2 by the end of 2024.