UBS_Equities-China_A-Share_Style_Guide_Rally_across_all_factors_as_2024_...-112559929_16页_4mb

China A-Share Style Guide Summary December 2024
The investing environment has stable macroeconomic drivers with moderate explanatory power. Stock pairwise correlations are low, indicating reduced synchronization in market movements.
Market valuation slightly increased, from 12.9x to 13.1x forward PE, with IT and healthcare sectors at high levels. Real estate and materials are at historical valuation peaks.
All quant styles performed well in December, with delta quality leading at 7.8% long-short return. Value and momentum factors also achieved strong gains exceeding 5%. Over 2024, value, low-risk, and earnings momentum were top performers with annual returns around 10%.