In the third quarter of 2024, equity market leadership shifted as economic conditions stabilized and investors anticipated the start of an interest rate-cutting cycle.

Over the past decade, Chinese stocks underperformed global peers, including the S&P 500, due to earnings declines and deteriorating levels of profitability.

Market prices already reflect lower interest rates from the Federal Reserve. As such, bond yields and fixed rate borrowing costs were little changed following the Federal Reserve’s decision to cut interest rates by 0.5% this past week.