2021.09.28
■ We joined the ESG forum last week, organized by China Galaxy Securities (CGS), China Galaxy International (CGI) and Zhitong Caijing. ■ This report summarizes the 4Q strategies released by the China Galaxy Securities research team, including Macro, Assets Allocation & Fixed Income, TMT, Carbon Neutrality (Environmental Protection, Building Materials, Ferrous Metals and Coal Mining), Light Industries and Machinery & Equipment. ■ On the macro front, three key factors to look for are the COVID-19 Delta variant outbreak, inflation (developed markets vs. developing markets) and global liquidity (decisions by Central Banks in various countries regarding the normalization of monetary policy). Investors should also monitor messages from senior government officials to see whether there is a major change in policy direction (loosen/tightening). ■ On the industry front, carbon neutrality (environmental protection and renewable energy) and localization (both hardware and software) are the key themes in China. ■ Regarding these investment themes, HK-listed beneficiaries include Xinyi Solar [0968.HK], Xinyi Energy [3868.HK], Longyuan [0916.HK], GoldWind [2208.HK], CATL [300750.CH], Shanghai Putailia [603659.CH], CEI [0257.HK], CWA [0855.HK], BEWG [0371.HK], CNBM [3323.HK], CR Cement [1313.HK], WeiMob [2013.HK], Kingdee [0268.HK], ZTE [0763.HK] and Inspur [0596.HK].
