Americas Europe Asia

Dr. David Kelly, CFA Karen Ward Tai Hui

New York London Hong Kong

David Lebovitz Gabriela Santos Vincent Juvyns Marcella Chow Chaoping Zhu,
New York New York Michael Bell, CFA Hong Kong CFA
Luxembourg
London Shanghai

Jack Manley Meera Pandit, CFA Hugh Gimber, CFA Tilmann Galler, CFA Ian Hui
New York New York London Frankfurt Hong Kong

Jordan Jackson Stephanie Aliaga Max McKechnie Maria Paola Toschi Adrian Tong Shogo Maekawa
New York New York London Milan Hong Kong Tokyo

Mary Park Durham Nimish Vyas Natasha May Elena Domecq Agnes Lin
New York New York London Madrid Jennifer Qiu Taipei
Hong Kong

Marina Valentini
Sao Paulo
Brandon Hall Kathleen Clum Zara Nokes Lucia Gutierrez Mellado Kerry Craig, CFA
New York New York Sahil Gauba
London Madrid Mumbai Melbourne
GDP size of China and U.S. Real GDP per capita and urbanization ratios
USD billions, current prices USD, Constant prices, 1960 – 2032**
$50,000 $70,000 2032
Forecast*
China 2027
China 2022
$45,000 contribution
GDP
to global
ranking $60,000
Decade growth
$40,000 1980s 8 1%
1990s 8 20%
2000s 5 15% $50,000
$35,000
2010s 2 32%

Real GDP per Capita

2020s* 2 24%
$30,000
2032* 1 30% $40,000
U.S.
$25,000
$30,000
$20,000
South
2032
U.S. Korea
$15,000 $20,000
2027
2022
$10,000
$10,000
China China
$5,000 India

$0
$0 15 35 55 75 95
'80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30 Urbanization Ratio
Growth of the middle class Contribution to middle class growth: 2023 to 2030
% of total population Millions of people
100% 1,400
1995 2023F 2030F 34 8

47 -1
1,200
79% 79% 71
80%
75%
72% Rest of
1,000 Asia, 168

61%
60% 57% 800 China,
304
51%

41% 600
40%
40% 38%
34%
30%
400
India,
642
20%
200

4%
1% 0% 0
Asia Pacific Middle East Sub-Saharan Central and North America Europe
0% and North Africa South America
India Indonesia China Brazil Mexico Africa
Contribution to potential growth
Percentage points, real growth rate
15% Potential
TFP TFP Labor Capital GDP
Labor Growth
13% 2000-2007 4.1 1.6 4.4 10.2
Capital
Actual GDP Growth 2008-2015 2.4 1.7 4.8 9.0
11% 2016-2020 1.9 0.5 3.6 6.0
2021-2025 2.5 0.1 2.6 5.3
9% 2026-2030 2.4 -0.1 2.0 4.4

7%

5%

3%

1%

-1%
'90 '95 '00 '05 '10 '15 '20 '25 '30
Share of GDP by sector
% of nominal GDP
60%
2022: 52.8%
Agriculture Manufacturing Services

50%

2022: 39.9%
40%

30%

20%

2022: 7.3%
10%

0%
'78 '83 '88 '93 '98 '03 '08 '13 '18
Contribution to GDP growth
Percentage points, real growth rate
24%

2020 2021 2022 1Q23

20% Gross capital formation (Investment) 1.8 1.7 1.5 1.6
Consumption -0.2 4.9 1.0 3.0
Net exports 0.6 1.9 0.5 -0.1
16% Total GDP growth (% year-over-year)* 2.2 8.5 3.0 4.5

12%

8%
1Q23:
4.5%
4%

0%

-4%

-8%
'78 '83 '88 '93 '98 '03 '08 '13 '18 '23
Total exports and imports China’s exports by product
% of GDP % of total exports
40% 50%
35%
Machinery and Electronics
Exports 45%
30%
25%
2022: 19.9% 40%
20%
15% 35%
Imports
10%
2022: 15.0%
5% 30%
0%
'82 '86 '90 '94 '98 '02 '06 '10 '14 '18 '22 25%
Current account balance
% of GDP
20%
12%
10%
8% 15%
Textiles and Clothing
6%
2022: 10% Metals
4%
2.3%
2%
0% 5%
-2% Chemicals
Transportation
-4% 0%
-6% '92 '95 '98 '01 '04 '07 '10 '13 '16 '19
'80 '83 '86 '89 '92 '95 '98 '01 '04 '07 '10 '13 '16 '19 '22
China’s share in global trade China’s major trading partners
% of world total trade, goods only USD billions, rolling 12-month sum, goods only
16%
-$500 -$300 -$100 $100 $300 $500 $700
2022:
15%
14% U.S. $381

Hong Kong $310

12%
EU $268
Exports
10% ASEAN $190
2022:
11%
India $105
8%
Imports UK $61

6% Canada $3

Japan -$8
4%
South Korea -$21 Imports
2% Exports
Brazil -$51
Trade balance
Taiwan -$154
0%
'80 '83 '86 '89 '92 '95 '98 '01 '04 '07 '10 '13 '16 '19 '22
Contribution to global consumption growth China’s share in global luxury goods consumption
Household consumption Domestic and overseas spending by Chinese consumers as % total
China U.S. Europe Rest of world 40% 40%
100% 35%
32%
30%
90%
28%
35% 19%
80% 38% 20%
48%
54%
70% 10%
12%
60% 9% 0%
2012 2018 2020 2025F*
15%
50% China’s Singles’ Day vs. U.S. holiday sales
12% USD billions, gross merchandise value
6% 32%
40% 90 84.5 84.5**
33% Prime Day
Cyber Monday 74.1
75
18% Black Friday
30%
37% 28% 60 Thanksgiving, Sat. & Sun.
China Singles' day 47.2
44.8 45.1
20% 45 35.7 38.4 14.9
14.5 14.3
27% 28.5 30.8
23% 23% 30 11.6 9.1
10% 9.0 8.9
10.2
12% 7.4 11.3
9% 15 6.2 10.8 10.7
9.4
0% 7.9 11.2 11.9
7.2 10.4
0 4.2
2000 2005 2010 2015 2021
2018 2019 2020 2021 2022
Household
Householdsavings
savingsrate
rate Household
Household wealth
wealth by
by asset
asset type
type
%
%household
householddisposable income,
disposable latest*
income, latest* %
% of
oftotal,
total,as
asofofDec.
Dec.2019
2019
40%
40% 35% Property Cash & deposits
36% Equity & mutual fund Insurance & pension
35%
Other securities Others
30%
30% 100% 1% 3% 2%
25% 4%
4%
1% 9%
20% 15%
3%
20% 13% 90%
15% 17% 7% 5%
7% 8% 22%
10% 4% 12% 23%
11%
5% 80% 12%
10% 7% 8%
0% 19%
Japan UK U.S. Euro Mexico China 70%
0%
Area 17%
UK Euro Area Japan U.S. Mexico China 60%
Social
Social benefits
benefits to
to households**
households in cash** 32%
In
% cash, % latest*
of GDP, of GDP 50%
25%
25% 28%
Euro
EuroArea
Area U.S.
U.S. UKUK
40%
20% Japan
Japan China
China Mexico
Mexico 73%
20%
66%
15%
30%
15%
15%

10% 20%
10%
30%
24%
5%
5% 10%

0%
0% 0%
'00
2000 '02 2004
'04 '06 2008
'08 '10 2012
'12 '14 2016
'16 '18 2020
'20 China Korea Taiwan U.S.
Distribution of pre-tax national income Top 10%’s ownership of national income and wealth*
50% 100%
Middle 40%

42.9% 90%
45%

79%
43.4% 80%
40%

70%
35% 62%

Top 10% 60%

55%
30% 52% 53%
49%
50% 46%
44% 43%
25% 41%
40% 38%
36%
Bottom 50% 31%
20% 30%
30%

15% 20%
13.7%
10% 10%

5% 0%

Wealth

Wealth

Wealth

Wealth

Wealth

Wealth

Wealth
Income

Income

Income

Income

Income

Income

Income
0%
'79 '83 '87 '91 '95 '99 '03 '07 '11 '15 '19 Japan France UK Norway Germany China U.S.
Total population Crude birth and death rate
Billion people Per 1,000 people
1.6 30
Forecast
Forecast

1.4
25
Birth rate
1.2
Death rate
20
1.0

0.8 15

0.6
10

0.4
Total population

Urban population 5
0.2

0.0 0
'90 '95 '00 '05 '10 '15 '20 '25 '30 '35 '40 '45 '50 '80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30 '35 '40 '45 '50
Patent applications Research and development
# of PCT patent filings* Expenditures as % of GDP
80,000 4%
United States
Japan
70,000
Germany
China
60,000 3%

50,000

40,000 2%

30,000

20,000 1%
United States
Japan
10,000
Germany
China
0 0%
'97 '02 '07 '12 '17 '22 '96 '00 '04 '08 '12 '16 '20
Current self-sufficiency rate amongst different technology products
Percentage points
100%
Higher technology
ERP software entry barrier
Cloud IaaS
80% PCB
Software related
Industrial products
Semiconductors/ integrated circuit related
Self-sufficiency rate

60%

Wafer fabrication (non-advanced)

40%

Office software Laser generator

CMOS image sensor
Inverter Wafer cleaning Eq.
Robotics
20%

IC assembly & testing Speed reducer Power IC Etching Eq.

Lithography Eq.
IC substrate CPU Wafer fabrication (advanced)
RF IC
0%
Technology entry barrier
Greenhouse gas emission targets Structure of China’s energy consumption
Billion tonnes/year, CO2 equivalent % of primary energy
18 100%
Current Forecast
Path to net zero Forecast
policy
forecast 90%
16

80%
14 China
70%

12
60%

10 50%

8 40%
U.S.
30%
6
20%
EU
4
10%

2
0%
'95 '00 '05 '10 '15 '20 '25 '30 '35 '40 '45 '50
0 Oil Coal Gas Hydro Nuclear Renewables*
'90 '00 '10 '20 '30 '40 '50 '60
China’s GDP per capita vs. Five Year Plans (FYP)
USD, nominal price
$18,000
12th FYP: 13th FYP:
• Innovation Forecast*
• Rebalance to
$16,000 consumption from • Environment
investment • Supranational
• Shift coastal cities • Reform one-child
$14,000 from manufacturing policy
to R&D and • New urbanization

$12,000 services
• Expand highways
11th FYP: and highspeed
• Quantitative targets railways
$10,000 • 7.5% annual GDP 14th FYP:
• Prudent monetary • Expand domestic
growth policy and curb
• Increase services’ demand while
$8,000 housing prices keeping development
share in GDP and
employment of external sectors
10th FYP: • Create 45mn jobs • Improve self-
$6,000 sufficiency of key
• 7% GDP growth
• Boost international technologies and
competitiveness products
$4,000
• Balance external • Promote common
position prosperity
$2,000 • Environmental
protection

$0
'00 '05 '10 '15 '20 '25
Foreign investment into onshore Chinese equities and bonds
Foreign investor outstanding holdings, USD billion
20
Date Key capital market developments in China
Bond holdings 11/2002 China opens its domestic stock market via Qualified Foreign Institutional Investor program
Equity holdings 11/2014 Launch of Shanghai North and Southbound Stock Connect*
China allows foreign central banks, international financial organizations and
07/2015
sovereign wealth funds to enter domestic bond market
16 12/2016 Launch of Shenzhen North and Southbound Stock Connect*
06/2017 MSCI announces plan to include China A-shares in global indices
07/2017 Launch of Northbound Bond Connect**
09/2018 FTSE Russell announces plans to include China A-shares in global indices
01/2019 Bloomberg announces inclusion of Chinese CNY denominated bonds into global indices
09/2019 China lifts quota for QFI*** programs
12 10/2020 Launch of ETF cross listing in Shenzhen
06/2021 Launch of ETF cross listing in Shanghai
09/2021 Launch of Southbound Bond Connect**
07/2022 Launch of ETF Connect
2H2023 Proposed launch of Swap Connect

Capital market
reform developments

0
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23
New energy vehicles (BEV* and PHEV**) in use Electric vehicle charging points
Millions Thousands, publicly accessible
30 2,500

Thousands
Countries/Regions 2022
25 128
China 14.1 Charging points
Europe 7.4 per 100 BEV and
20 Countries/Regions
U.S. 3.0 PHEV vehicles in
Rest of the world 1.4 use in 2022
15 2,000 490
China 12.5
Europe 6.6
10 U.S. 4.3

5
114
1,500
0
'15 '16 '17 '18 '19 '20 '21 '22
345
New energy vehicles (BEV* and PHEV**) sales
%, share of total car sales 99
50% 1,000
Projected*** 246
Countries/Regions 2022 2025F 1760
40% China 29% 45% 77
Europe 21% 32%
30% U.S. 8% 22% 188 1150
500
20% 54 810
43 138
38 113 510
10% 32 98
213 270
61 141
0% 0 59
'15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '15 '16 '17 '18 '19 '20 '21 '22
Contribution to global renewable electricity generation in 2021 Contribution to global lithium-ion battery production
Gigawatts Battery cell manufacturing capacity, gigawatt hours
1,200 9,000

1,067 % contribution to global renewable electricity

% of global battery 1,337
generation capacity, 2021 8,000 manufacturing
China U.S. capacity
1,000
Total 33% 11% 503
Year 2022 2027E*
7,000
Hydro 29% 8% China 77% 69% 908
Wind 40% 16% U.S. 6% 10%
800 Solar PV* 35% 13% 6,000 Germany 3% 6%
Others 22% 9% Rest of the world 15% 15%

5,000
600
4,000

373 3,000 6,197

400

2,000

200 154 145 139 170

91 1,000 31
67 61 70
893
0 0
China U.S. India Germany Japan ASEAN Spain Italy 2022 2027E*
China and U.S. residential real estate investment Housing affordability in global major cities
Ratio, median apartment prices to median family disposable income
2,000 20% 50x 48x
USD billions % of GDP
45x
1,800 18% 45x
China ($Bn) 41x
China (% GDP) 40x
U.S. ($Bn) U.S. (% GDP) 40x 38x
1,600 16%
35x
1,400 14%
30x
1,200 12%
25x
21x 20x
1,000 10%
20x
16x 16x
15x
14x
800 8% 15x 13x
11x
10x
10x 8x
600 6%

5x
400 4%

0x
200 2%

0 0%
'03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Changes in U.S. sentiment toward China* Plans to relocate out of China
% in the U.S. who have a(n) __ view of China Is your company considering, or has it already begun relocating
90% manufacturing or sourcing outside of China?**
Mar. 2023: 83% No, not considering Yes, considering Yes, started Other
75%
100% 2% 3%
Unfavorable 2%
60% 7% 7%
12%
90%
45% 8% 7%

30% 80% 12%

Favorable

15%
70%
Mar. 2023: 14%
0%
'05 '07 '09 '11 '13 '15 '17 '19 '21 '23 60%
Foreign direct investment
USD billions 50%
20
U.S. FDI into China China FDI into U.S. 83% 83%
40%
15 74%

10 30%

5
20%
0

-5 10%

-10
'03 '05 '07 '09 '11 '13 '15 '17 '19 '21 0%
2020 2021 2022
Chinese major cities’ subway passenger flow Chinese major cities’ traffic congestion*
Index, 2019 average = 100, 7-day moving average Index, 2019 average = 100, 7-day moving average
160 120
Shenzhen
Beijing
140
Shanghai 110

120

100
100

80 90

60
80

40 Shenzhen

70
Beijing
20 Shanghai

0 60
Jan-'22 Apr-'22 Jul-'22 Oct-'22 Jan-'23 Apr-'23 Jan-'22 Mar-'22 May-'22 Jul-'22 Sep-'22 Nov-'22 Jan-'23
Daily flights dispatched Daily freight traffic**
Number of flights, 7-day moving average 7-day moving average
800 20 11.4 9
International flights Domestic flights (thousands) Railway volume (million tons) Truck flow (million vehicles)
Hong Kong, Macau &Taiwan flights
18
700 Number of % as of 2019
11.2 8
April 30, 2023*
flights average
Domestic 13,367 109% 16
HK, Macau 11.0 7
600 &Taiwan
259 125%
International 690 54% 14
10.8 6
500
12
10.6 5
400 10

10.4 4
8
300
10.2 3
6
200
10.0 2
4

100
2 9.8 1

0 0 9.6 0
Apr '21 Jul '21 Oct '21 Jan '22 Apr '22 Jul '22 Oct '22 Jan '23 Apr '23 May '22 Jul '22 Sep '22 Nov '22 Jan '23 Mar '23
Impact of China’s reopening on the world
China’s top 10 imported goods categories Asia markets’ dependence on Chinese tourists
% of total gross goods import value*, 2021 Chinese tourist spending as % of GDP, 2019
Top 3 markets
0% 5% 10% 15% 20% of origin 6.0%
Russia (15%), 5.5%
Mineral fuels and oils Saudi Arabia (12%),
Iraq (7%)

Taiwan (22%),
Electrical machinery and 5.0%
Korea (21%),
equipments Japan (10%)

Australia (45%),
Ores, slag and ash Brazil (13%),
Chile (10%)
4.0%
Japan (21%),
Machinery and mechanical Germany (16%),
appliances South Korea (10%)
3.2%
Japan (19%),
Photographic and medical South Korea (12%),
instruments Taiwan (12%)
3.0%

Germany (41%),
Japan (20%),
Vehicles USA (12%)

South Korea (18%), 2.0%

Japan (14%),
Plastics Taiwan (13%)

Chile (15%),
Copper articles Congo (10%), 1.0%
Japan (9%) 1.0% 0.8%
0.6% 0.6%
South Korea (21%),
Organic chemicals Japan (10%),
Taiwan (10%)
0.2%

Precious stones, metals Switzerland (32%), 0.0%

and pearls South Africa (19%), Hong Kong Thailand Malaysia Singapore Australia South Japan
Australia (11%) Korea
Manufacturing PMIs Services PMIs
Index Index
60 60

Apr. 2023 Index

NBS 49.2
Caixin/Markit 49.5 55
55

50

50
45
Apr. 2023 Index
NBS 56.4
Caixin/Markit 56.4
40
45

35

40
30

35 25
'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Fixed asset investment Fixed asset investment by sector
Year-over-year change, year-to-date Year-over-year change, year-to-date
40% 40%
Jan.- Mar. 2023 y/y
Aggregate 5.1%
Public 10.0%
Private 0.6% 30%
30%

20%
20%

10%
10%

0%

0% Jan.- Mar. 2023 y/y

Real estate -5.8%
-10% Manufacturing 7.0%
Infrastructure (excl. electricity) 8.8%
-10%
-20%

-20%
-30%

-30% -40%
'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Consumption Automobile sales
Year-over-year change, 3-month moving average Million units, saar
50% 35
Mar. 2023 Million units
3mma as of Mar. 2023
China 24.6
Retail sales 5.9%
U.S. 14.8
Online sales 8.9%
Euro Area 8.7
40% 30

30% 25

20% 20

10% 15

0% 10

-10% 5

-20% 0
'16 '17 '18 '19 '20 '21 '22 '23 '07 '09 '11 '13 '15 '17 '19 '21 '23
Consumer confidence PMI business expectation sub-index
Index Index
130 70

125
Income expectations 65

120 Non-manufacturing

60
115

110
55

105
Manufacturing

Willingness to 50
100
consume
Consumer confidence
95 45

90
40
85

80 35
'13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Surveyed urban unemployment rate Surveyed urban unemployment rate by age
7.0% 21%
Mar 2023:
19.6%
19%

6.5%
17%

15%
6.0%
Aged 16 to 24
13%

5.5% 11%

9%
Mar. 2023:
5.3%
5.0%
7%
Aged 25 to 59 Mar. 2023:
4.3%
5%
4.5%

3%

4.0% 1%
'17 '18 '19 '20 '21 '22 '23 '18 '19 '20 '21 '22 '23
Property prices and volume Sources of funding for property developers**
Year-over-year % change CNY trillions
40% 25
Others
Personal mortgage loans
30%
Deposit and advanced payment
0.6
20 Self-raised funds 0.7
20% Domestic Loans 0.7
3.2
0.7 3.0

10% 0.0 2.7

15 0.6
0.0 2.4
2.4
2.4
0% 0.1 0.1 0.0 2.4 6.7 7.4
6.1
1.4 1.4 1.7 5.6
10 0.0 4.9
-10% 4.9
4.2
0.1 1.1 3.4 3.0 3.3 YTD
0.9
2.7
-20% 2.2 6.3 6.5
5.6 5.8
5 5.1 0.1
5.0 4.9 4.9 5.3
Tier-1 property price index 4.7
0.8
-30% Tier-2 property price index 3.9
3.5
1.6
Tier-3 property price index
2.1 2.0 2.2 2.5 2.4 2.5 2.7 2.3 1.3
Property volume* 1.5 2.0 1.7
1.3
-40% 0 0.6
'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Outstanding property loans of 15 major banks* Exposure to property market of 15 major banks
CNY Trillions % of total outstanding loans
45 30%
Mortgage loans
40 Real estate development loans
Mortgage loans
25%
Real estate development loans
35

30 20%

25
15%
20

15 10%

10
5%
5

0 0%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Nonperforming loans (NPL) of banks Capital adequacy ratios
CNY trillions
350% 3.5 16%
Nonperforming loans Capital adequacy ratio

Provision coverage ratio Tier-1 capital adequacy ratio

15%
300% 3.0

14%
250% 2.5

13%

200% 2.0

12%

150% 1.5
11%

100% 1.0
10%

50% 0.5 9%

8%
0% 0.0 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
'13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Goods trade Balance of trade
Year-over-year change, 3-month moving average USD billions, 3-month moving average
80% 100

3mma as of Mar. 2023 90 3mma as of Mar. 2023 USD billions

Exports 1.0% Goods 68.4
Imports -6.2% Services -15.7
80
60%
70

60

50
40%

40

30

20%
20

10

0
0%
-10

-20

-20% -30
'15 '16 '17 '18 '19 '20 '21 '22 '23 '15 '16 '17 '18 '19 '20 '21 '22 '23
Consumer price index Producer price index
Year-over-year change Year-over-year change
9% 20%
Mar. 2023 y/y Mar. 2023 y/y
Headline CPI 0.7% Headline PPI -2.5%
Core CPI 0.7% 26% Producer goods -3.4%
7% Food inflation (RHS) 2.4% Consumer goods 0.9%
15%

5% 17%
10%

3%
9%
5%

1%

0%
0%
-1%

-9% -5%
-3%

-5% -17% -10%

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Liquidity injections by the PBoC
CNY billions, net injection
2,400

2,000
Open market operations*
Monetary policy tools**
1,600

1,200

800

400

-400

-800

-1,200
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Key policy rates Policy rate Description Apr. 28, 2023
Per annum
Loan prime rate (1-Yr/5-Yr) New benchmark lending rate 3.65%/4.30%
7.5%
Medium-term lending facility Most representative policy tool 2.75%
Interbank repo Interbank market rate 2.37%
Benchmark rate for bank
Deposit rate 1.50%
savings
6.0%

Loan prime rate*

Lending rate (5-year)
(1-year)
4.5%
Loan prime rate*
(1-year)

Medium-term lending
facility (1-year)
3.0%

Interbank repo (7-day)

1.5%
Deposit rate (1-year)

0.0%
'15 '16 '17 '18 '19 '20 '21 '22 '23
Reserve requirement ratio
22%

20%

18%
Large banks

16%

14%

Mar. 2023:
10.75%
12%

Small- and medium-sized banks

10%

8%
Apr. 2023:
7.75%
6%
'09 '11 '13 '15 '17 '19 '21 '23
Credit cycles
Percentage points, credit growth – nominal GDP growth, 3-month moving average
25
Rapid rebound in CPI & PPI

20
Tightening:
Loosening: 125bps rate
216bps rate cuts, hikes, BASEL III
4tn stimulus adoption
15
Interbank
liquidity A-share
crunch market crash
Loosening: Loosening:
10 165bps rate Tightening: RRR cuts Policy
cuts, LGFV Implementation normalization
Loosening: debt of de-leveraging
56bps rate Mar. 2023:
swap** policies
cuts, trust 5.3ppts
5 boom Tightening: COVID-19
shadow Rate cut outbreak
banking
tightening
0
Global U.S. – China
Financial Wenzhou small and medium trade tensions
Crisis enterprise (SME) crisis*
Loosening: RRR and
-5 LPR cuts
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Credit impulse and industrial metals’ prices
Percentage points, year-over-year change, % of nominal GDP Year-over-year change, 3-month moving average
25% 100%
Bloomberg industrial metals index

20% 80%

15% 60%

10% 40%

5% 20%

0% 0%

-5% -20%

-10% -40%

Credit impulse
-15% -60%
'05 '07 '09 '11 '13 '15 '17 '19 '21
Fiscal revenues and expenditures* Fiscal balance
Year-over-year change, 3-month moving average % of nominal GDP
30% 0%
Revenue

Expenditure -2%
Budget deficit
20%

-4%

10% Actual deficit**

-6%

0% -8%
Augmented deficit

-10%
-10%

-12%

-20%
-14%

-30% -16%
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Chinese yuan exchange rates
Price level Index (inverted)
7.8 90
Depreciating CFETS CNY Index*
7.6
92
7.4
94
7.2

7.0 96

6.8
98
6.6
100
6.4

6.2 102
Exchange rate Description
6.0 USD/CNY Chinese Yuan in onshore market vs. U.S. dollar
104
USD/CNH Chinese Yuan in offshore market vs. U.S. dollar
5.8 CFETS CNY China Foreign Exchange Trade System basket of
USD/CNY
Index 24 currencies traded against the Chinese Yuan 106
5.6 USD/CNH
Appreciating
5.4 108
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23
Currency weights in IMF’s SDR basket Global central bank reserve manager holdings
% of total
100% USD EUR JPY GBP RMB CAD AUD CHF Other
Pound Sterling
100%
7%
90% Japanese Yen
8% 90%

80% Chinese Yuan

12% 80%

70%
70%

60% Euro
60%
29%

50%
50%

40% 40%

30% 30%
U.S. Dollar
20% 43% 20%

10% 10%

0% 0%
Currency weights in SDR basket '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Stock exchange market capitalizations
USD trillions, 2022
50
$40.3
40

30

20
$11.4
10 $5.4 $4.6 $3.1

0
NYSE & Nasdaq Shanghai & Shenzhen Japan Hong Kong London

Stock exchange market capitalizations

USD trillions
$60

$50
NYSE & Nasdaq Shanghai & Shenzhen Hong Kong
$40

$30

$20

$10

$0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
 Foreign investor
Share class Definition Currency Indices
access
SZSE Composite
QFII (CNY), RQFII Index, Shanghai
Securities incorporated in Mainland China, listed on the
A-shares CNY (CNH), Northbound Composite Index, CSI
Shanghai or Shenzhen Stock Exchange
Onshore Stock Connect 300, MSCI China A,
MSCI China
Securities incorporated in Mainland China, listed on the USD (Shanghai), HKD
B-shares No restrictions
Shanghai or Shenzhen Stock Exchange (Shenzhen)
Securities incorporated in Mainland China, listed on the Hong
H-shares HKD
Kong Stock Exchange
Securities of state-owned companies incorporated outside Hang Seng Index,
Red-chips HKD
Mainland China, listed on the Hong Kong Stock Exchange MSCI China
Offshore Securities of non-government owned companies incorporated No restrictions
P-chips HKD
outside Mainland China, listed on Hong Kong Stock Exchange
Securities (including ADRs) listed on foreign exchanges such
Overseas USD, SGD
as the Nasdaq and NYSE (N-shares), and Singapore MSCI China
(N and S-shares)
Exchange (S-shares)

Market capitalization and constituents by market

MSCI indices, as of Apr. 2023
2,500 600
Market capitalization (USD billions) Number of constituents
503 500
2,000
$1,718
400
1,500
300
$927
1,000
200
$480 79
500
$177
100
76 $121
$6 4 33 20
0 0
A-shares B-shares H-shares Red-chips P-chips Overseas
Initial public offerings IPO breakdown by sector
Includes Shanghai, Shenzhen, Hong Kong, and ADRs 2016 – YTD 2023
615
180 % of market
Value (USD billions) Deal count 600 Sectors
value
165 Consumer 28.3%
538 550
Industrial 20.7%
150 502 Tech 10.8%
$136 500
$132 Materials 5.1%
135 Financials 17.4%
450
422 Comm. Servs. 12.5%
120 Energy 3.6%
400
Utilities 1.5%
105 $99 Diversified 0.1%
350
321
90
280 300 IPO breakdown by market
$71 2016 – YTD 2023
75 217
250

60 $52 200
$48 $64
Hong Kong
45 150 33%
111 Shanghai &
30 $21 100 Shenzhen
60%
15 50 ADRs
7%
0 0
'16 '17 `18 '19 '20 '21 '22 YTD '23
Chinese stocks listed on U.S. exchanges Chinese stock performance by listing
Chinese ADRs* Price index, Jan. 2002 = 100
$2,500 350 900
Aggregate market cap Total number
(USD billions)
800
300
$2,000
700

250 S&P China Select ADR Index

600

$1,500
200 500

400
150
$1,000
300

100
200
$500 Shanghai Shenzhen CSI 300 Index
50 100

0
$0 0 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
'06 '08 '10 '12 '14 '16 '18 '20 22 YTD-
’23
Sector weights
% of index market capitalization
50%

MSCI China Hang Seng CSI 300 S&P 500

40%

29%29%
30%
28%
26%

19%
20% 18%
17%
14%
13% 12% 13%
11% 12%
10%
10% 8% 9%
7% 7% 7% 7% 7%
6% 6% 6% 6% 6% 6%
5% 6% 5%
4% 5% 5%
4% 3% 3%
3% 3% 3% 3% 3% 3% 3%
1%

0%
Consumer Financials Communication Industrials Consumer Information Health Care Materials Utilities Real Estate Energy
Discretionary Services Staples Technology
Hang Seng Composite Index (HSCI) CSI 300 Index
SOE as % of sector and % of overall index market capitalization SOE as % of sector and % of overall index market capitalization

98% 100% 100% 100%

100% 95% 100%

88%

80%
80% 80%
72%
70%
64% 65%
59%
60% 60% 56%
53%
47%
44%

40% 40% 35%

33%

25% 26%

20% 18%
20%
11%
4% 4%

0% 0%
Average daily turnover Participation by type of investor
USD billions, 2022 % of total trading value, latest*
$500 Individual investors Institutional investors
$459.8 100%
$450
90% 18%

$400
80%

$350
70%

$300
60%
85%
$250
50%

$200 40% 82%

$150 $134.5 30%

$100 20%

$50 10%
15%
$12.3
$0 0%
Hong Kong Shanghai & Shenzhen U.S. Shanghai Hong Kong
MSCI China intra-year declines vs. calendar year returns
Local currency, average intra-year drops of -30.4% (median: -27.5%) and annual returns positive in 15 of 30 years of an average of 4.5%
100%

80% 79%
80%

64%
59%
60%
52%

40% 35%
33%
26% YTD ‘23
19% 21%
20% 16%
10%
3% 5%
0%
0%
-1% -1% 0%
-10% -9%
-20% -13% -11%
-18% -16% -15% -17% -16%
-20% -22% -20% -19% -20%
-23% -22% -22% -23% -22%
-26% -26% -25% -17% -17%-22%
-31% -32% -30%
-40% -34% -35% -33%
-38% -39% -37% -38%
-44% -44%
-47%
-53% -51% -52%
-60% -47%

-65%
-68%
-80%
'93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23
Previous vs. current Chinese equity market corrections
MSCI China
70%
Peak-to-trough correction 4 weeks after trough
12 weeks after trough 26 weeks after trough 53%
50%

32% 34%

30% 26% 27%

25%
19% 19%
13% 12%
8% 10%
10%

-10%

Apr. '11 to
-30% Sep '11
May '15 to Jan. '18 to
-33%
-37% Feb. '16 Oct. '18

-50% -43%

Feb. '21 to
Oct. '22
-63%
-70%
2011 correction 2015/16 correction 2018 correction 2021/2022 correction
MSCI China price index
200
Year(s) Principle Policy Tool Sectors
Real estate, steel, auto, power plants, cement, glass and
180 Interest rate and RRR hike, other industries with excessive capacity and/or high
2003 Macro economic control
administrative power energy consumption. Cut export tariff return for high
energy-consuming and heavy-pollution products.
Infrastructure investment, interest rate
160 2008 Economic stabilization
and RRR cuts, fiscal expansion
Highway, railway, airports, real estate
Credit control and purchase control in
2010-2011 Property market control Real estate
property market
140 2015-2018 Supply-side reform Monetary policy, administrative power
Traditional sectors (property market, steel, coal, cement,
glass), local government financing
2021- Oct 2022 Limit monopoly power Regulations, monetary policy Internet, education, health care, real estate, energy
120 Nov 2022 -
Policy pivot to support the
Stimulus measures
Mainly concentrated in real estate sector, along with
economy easing of COVID restrictions

100
Introduction of
80 policy reforms

60

40

20

0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
MSCI China Real Estate Index
June 2020 = 100
140
Jul ‘21: Government issues
guidance on real estate
monitoring and local
governments tighten purchase Oct ‘21: National
120 restrictions measures People’s Congress Sep ‘22: PBoC
authorized the State allows flexibility
Council to pilot to reduce
property tax minimum
mortgage rates /
Nov ‘22: Growing
100 income tax rate
reopening expectations
May ‘22: PBoC lowers in secondary
mortgage rate floor home sales • 16-points notice
and cuts LPR • Easing on escrow
accounts
80 • CSRC 5-point
measure
Aug ‘20:
Introduction of
three red-line
60 rules
Dec ‘21: PBoC pledges to support
home buyers and promote healthy
development of the real estate
market
40 Jul ‘22: State Council
Mar ‘22: Authorities vowed to approves the set up of a Jan ‘23: PBoC
Jan ‘22 to Mar ‘22: Local level manage risks in real estate; and CBIRC
USD 11.8 billion rescue
easing measures introduced property tax pilot program suggest 4
fund to support distressed
suspended property developers action plans to
20 improve the
Dec ‘22: State-owned enterprise banks to issue balance sheet
developers’ offshore debt secured by onshore of high-quality
guarantee developers
0
06/20 09/20 12/20 03/21 06/21 09/21 12/21 03/22 06/22 09/22 12/22 03/23
MSCI Golden Dragon index
350

Apr ‘21: Regulatory campaign 1Q23: Normalized, regular

Nov ‘20: Regulatory launched targeting internet giants’ approval release of
intervention in IPO monopolistic activities domestic game batches
300 market Jan ‘23: Reinstatement of and earlier-than-expected
Jul ‘21: Instructions published to strengthen popular ride-share app on release of imported games
social responsibility and labor rights on food app store and new user
delivery platforms registration
Mar ‘23: Business
250 conglomerate splits up
Oct ‘22: New guidelines to into 6 different groups
potentially further enhance the and two key listings on
Jul ‘21: Policy published to development of digital economy HK exchange
restrict after-school tutoring and infrastructure
200 services

150 Dec ‘20: Holding Foreign

Jul ‘21: Popular ride-share Aug ‘21: Limit online game
Companies Accountable service hours to minors
Act passed, panic on app banned from app
stores for breaching data (those under age 18) Aug ‘22: US and China Mar ‘23: Former Premier Li
delisting of offshore China reached audit deal
security laws Keqiang highlighted the key
stocks
gov. focus for the year is to
100 Apr ‘22: Resumed online support the digital
game license approval economy, improve the level
of normalizing regulation
and supply the platform
economy
50

0
11/20 02/21 05/21 08/21 11/21 02/22 05/22 08/22 11/22 02/23
Share type dispersion
Price index, USD terms
150
S&P China
Hang Seng MSCI China
140 Market Performance Select ADR
Index A
Index
130 Since Jan '20 -30% -38% 9%
Since Feb '21 peak -36% -64% -30%
120 Since Oct '22 bottom 35% 49% 27%

110

100

90

80

70

60

50

40

30
01/20 04/20 07/20 10/20 01/21 04/21 07/21 10/21 01/22 04/22 07/22 10/22 01/23 04/23
MSCI China: Forward P/E ratio
26x
Valuation Std. dev. over- Tim e
Index m easure Latest 1/29/2021 Average /under-valued period
24x
MSCI China Forw ard P/E 10.5x 17.1x 11.8x -0.5 20-year
MSCI China Price to book 1.5x 2.8x 1.7x -0.3 20-year
22x MSCI China Dividend yield 2.5% 1.4% 2.7% 0.3 20-year
Hang Seng China Enterprises (H-shares) Forw ard P/E 8.8x 11.8x 8.5x 0.3 15-year
CSI 300 (A-shares) Forw ard P/E 14.2x 13.7x 14.2x 0.0 15-year
20x
ChiNext Forw ard P/E 34.1x 57.5x 38.3x -0.4 10-year
SME Board Forw ard P/E 24.2x 28.3x 23.4x 0.2 5-year
18x

16x
+1 Standard deviation: 14.5x
14x
Apr. 2023:
Average: 11.9x 10.5x
12x

10x

-1 Standard deviation: 9.0x

8x

6x
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
MSCI China: Price-to-earnings relative to U.S. CSI 300: Performance relative to U.S.
MSCI China vs. S&P 500, price to next 12-month earnings CSI 300 vs. S&P 500, difference in 12-month price returns
80% 300%

CSI 300 outperformance

250%
60%

200%
40%

150%

20%

100%
+1 Std. dev.: -1%
0%
50%

Average: -21%
-20%
0%

-1 Std. dev: -41%

-40% -50%

CSI 300 underperformance

Apr. 2023: -42%
-60% -100%
'06 '08 '10 '12 '14 '16 '18 '20 '22 '06 '08 '10 '12 '14 '16 '18 '20 '22
 Earnings growth of MSCI China* Earnings revision ratio of MSCI China
Year-over-year change, earnings per share, consensus estimates Net earnings revisions to consensus estimates, 3-month moving avg.
60% 0.3
MSCI China
Current 2023 estimate
Three largest sectors**
2023 estimate three months ago
50% 0.2 Other sectors
Current 2024 estimate
2024 estimate three months ago
40% 0.1

30% 0

20% -0.1

10%
-0.2

0%
-0.3

-10%
-0.4
MSCI China

Cons. Discr.
Tech.

Materials

Comm. Serv.
Energy

Real Estate

Utilities
Financials

Industrials

Cons. Staples

Health Care

-0.5

Sector -0.6
Weight (%) 3.2 16.9 6.0 3.3 5.8 2.6 100.0 3.7 5.5 19.3 6.2 27.4 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
 Returns (%) 10-yr. ('13-'22) annualized Price-to-earnings*
2018 2019 2020 2021 2022 1Q '23 YTD '2023 Return (%) Volatility (%) 2021 2022 YTD '2023

Utilities Con. staples Con. staples Utilities Energy Telecom Telecom Con. staples IT Con. staples Con. staples IT
-15.6 61.8 70.4 39.7 12.7 34.9 45.5 14.3 31.1 49.8 35.9 47.6
Financials IT Health Care Energy Financials IT IT IT Telecom IT IT Con. staples
-19.3 57.6 51.3 38.1 -12.3 26.5 18.7 9.2 28.4 39.0 33.7 32.4
Con. staples Health Care Industrials Materials Con. staples Energy Energy Health Care Energy Health Care Health Care Health Care
-20.6 35.7 38.8 30.3 -13.4 7.5 12.6 9.2 28.1 35.3 26.2 26.4
Health Care Financials Con. disc. Industrials Utilities All A-Share Utilities Telecom Health Care Telecom Con. disc. Telecom
-25.8 34.8 34.2 25.4 -15.4 6.7 6.7 8.3 26.7 30.8 23.1 22.9
Energy Telecom Materials Telecom Con. disc. Materials All A-Share All A-Share Materials Con. disc. Industrials Con. disc.
-27.0 34.6 30.2 8.4 -17.0 4.3 5.2 7.2 25.1 28.3 19.7 21.5
All A-Share All A-Share All A-Share IT All A-Share Con. disc. Financials Industrials Industrials Industrials Utilities Utilities
-28.8 33.4 26.9 8.0 -18.9 3.9 3.5 6.8 24.3 26.0 19.4 19.2
Industrials Con. disc. IT All A-Share Materials Industrials Industrials Con. disc. Con. staples Utilities Telecom Industrials
-33.0 26.4 18.6 7.7 -19.6 3.6 2.6 6.6 23.6 23.9 17.7 16.7
Telecom Materials Utilities Con. disc. Health Care Con. staples Health Care Utilities Utilities All A-Share All A-Share All A-Share
-33.7 25.6 3.7 -3.1 -20.3 3.5 0.7 6.0 23.1 17.3 14.1 15.7
Con. disc. Industrials Financials Health Care Industrials Utilities Con. disc. Financials Con. disc. Materials Materials Materials
-34.0 18.8 3.2 -7.0 -21.4 2.2 0.5 5.5 23.0 15.1 13.6 14.6
Materials Energy Energy Con. staples Telecom Health Care Materials Materials Financials Energy Financials Energy
-34.6 11.6 -5.6 -7.9 -21.7 1.8 0.1 5.4 22.9 8.7 6.4 7.3
IT Utilities Telecom Financials IT Financials Con. staples Energy All A-Share Financials Energy Financials
-34.8 6.9 -6.5 -7.9 -33.1 -0.9 -3.3 -0.1 21.5 7.0 6.2 6.9
Growth vs. Value valuations* Growth vs. Value relative performance
MSCI China Growth fwd. P/E ratio/Value fwd. P/E ratio MSCI China Growth/Value performance, Jan. 2006 = 100
7.0 400
Growth
expensive Growth outperforming value
relative to value
350
6.0

300
5.0

+1 Std. dev.: 4.1 250

4.0

200

3.0 Average: 2.8

150

2.0
100

-1 Std. dev.: 1.5

1.0
50
Growth cheap
relative to value Growth underperforming value
0.0 0
'06 '08 '10 '12 '14 '16 '18 '20 '22 '06 '08 '10 '12 '14 '16 '18 '20 '22
Number of unicorns by city* Venture capital fundraising
Capital raised, % of global total
San Francisco 181 80%
70%
U.S.: 67%
New York 126 60%
50%

Beijing 79 40%
30%

Shanghai 66 20%
China: 13%
10%

London 42 0%
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Shenzhen 33
China venture capital exits
USD billions, exit value Exit count
Chinese $350 350
Bengaluru 33 # of % of total Exit value ($B) Exit count
unicorns 291 $289
Unicorns valuation $300 300
by sector 264 259
Artificial
35 6% $250 250
Berlin 22 Intelligence
183
Semiconductor 28 5% $200 155 161 170 $168 200
141 $158
E-commerce 25 10% $150 121 150
Paris 22
$110
New Energy 22 5% $100 58 100
48 42 49 $76
Health Tech 22 3% 31 $55 $58 $58
$50 15 14 22 50
Guangzhou 22
$14 $17 $7 $22
$2 $9 $4 $2
$0 $1 0
0 50 100 150 200 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
MSCI Emerging Markets Index: Inclusion of China A-Shares

EMEA EMEA
EMEA 12% 15% 13% Latin
Latin
America America
Taiwan
Latin 12% 9%
Taiwan 15%
Taiwan America
25% 11%
14%
Korea Asia ex-China,
Asia ex-China, Korea &
Korea & Taiwan 12%
Korea Taiwan
Korea 12% 18% 20%
Asia ex-China,
13% Korea & Taiwan
16% Foreign P-chips
P-chips 8% listed H-shares Foreign 14% H-
10% A-shares listed shares
Red-chips H-shares 8% 2%
P-chips 3% 7% A-shares
5% 9% 8% Red-chips 5%
4%
Red-
chips B-shares
2% 0%

August 2011 May 2019 April 2023

China: 17% China: 32% China: 31%

Pre A-Share Inclusion A-Share inclusion begins 20% A-Share inclusion

(Current)
Foreign investors’ holdings of onshore Chinese equities China’s weight in selected indicators
CNY trillions % of domestic market cap % of total
4.5 5.0% 55%
Total holdings as % of domestic market cap 51%
50% 49%
4.0 4.5%
44% A-shares*
45%
4.0% Offshore
3.5
40%
3.5%
3.0 35% 23%
31%
3.0% 30%
5%
2.5
2.5% 25%

2.0
20% 18%
2.0%
15% 13%
1.5
26%
1.5%
10% 21%

1.0 6%
1.0% 5% 3%
3%
1%
3% 3%
0.5 0.5% 0%
EM EM MSCI MSCI Global Global MSCI MSCI
GDP market EM EM GDP market ACWI ACWI
cap (current) (100% cap (current) (100%
0.0 0.0% A-share A-share
'14 '15 '16 '17 '18 '19 '20 '21 '22 '23 inclusion) inclusion)
Correlation between A-shares and global equities Efficient frontier
MSCI All Country World and China A-shares
MSCI MSCI MSCI
S&P 500 MSCI EM CSI 300 9.1%
ACWI EAFE China

85.0% AC World
+ 15.0% China A
S&P 500 1.00 9.0%
87.5% AC World
+ 12.5% China A

8.9%
MSCI ACWI 0.98 1.00 90.0% AC World
+ 10.0% China A

Annualized return
8.8%
92.5% AC World
MSCI EM 0.77 0.83 1.00 + 7.5% China A

8.7%
95.0% AC World
+ 5.0% China A
MSCI EAFE 0.89 0.94 0.87 1.00
8.6%
97.5% AC World
+ 2.5% China A

99% AC World
MSCI China 0.54 0.61 0.85 0.66 1.00 8.5% + 1% China A
100% AC World
(0.0% China A)

8.4%
CSI 300 0.39 0.44 0.58 0.44 0.72 1.00 16.3% 16.4% 16.5% 16.6% 16.7%
Volatility
Total net flows into China equities % of investors with no China A-share exposure
USD billions, active and passive, 4-week moving average
1.2 80%
73%
Cumulative flows since Oct. '22
1.0 low (USD billions) 70%
A-shares 3.13
0.8 Offshore 6.86
60%

0.6
50%

0.4
40%

0.2
30%
30%
0.0

20%
-0.2

10%
-0.4

0%
-0.6 All Country World benchmark Emerging Markets benchmark
Feb-22 May-22 Aug-22 Nov-22 Feb-23 investors investors
Number of new investor accounts
In millions
3.0

2.5

2.0

1.5

1.0

0.5

0.0
'16 '17 '18 '19 '20 '21 '22 '23

Funds raised in newly issued mutual funds and equity market movements
CNY billion
140 5,500
Equity fund flows CSI 300 Index Level
120 5,000
100
4,500
80
4,000
60
3,500
40

20 3,000

0 2,500
'15 '16 '17 '18 '19 '20 '21 '22 '23
MSCI China MSCI Emerging Markets

U.S.
10%
Other
Europe 24%
China 3%
88% Japan
Asia ex-China 2% China
3% 27%
Asia ex-China
Other & Japan
3% 23%
Europe
U.S. 8%
3%

MSCI All Country World excluding U.S. S&P 500

Japan
3% Other
U.S. 11%
Other 18% Asia ex-China & Japan
23% 5%

China Europe
Japan 15% U.S.
13%
9% 60%

Europe
23% China
Asia ex-China
& Japan 7%
13%
Bond market size in value and as % of GDP
$60 400%
Bond market outstanding 328% Bond market
(USD trillions)* (% of 2022 GDP)
$45 $39.8 300%

$30 156% $21.4 200%

141%
118%
$13.9
$15 100%

$2.3
$0 0%
U.S. China Japan Korea

Debt and bonds as % of GDP

Total market value of total debt and bonds* as % of nominal GDP, 2022
500%
416% Government Corporate Household
400%
328%
296%
300% 258% 269%
249%
193%
200% 169% 172% 170%
156% 141% 136%
118% 103% 90%
100%

0%
Debt Bonds Debt Bonds Debt Bonds Debt Bonds Debt Bonds Debt Bonds Debt Bonds Debt Bonds
Japan* UK China U.S. Korea Germany Brazil India
Debt by market Yields by market
% GDP, includes government and corporate debt Government and corporate bond indices
400% 10%

350%
8%
Japan
300%

6%
250% Mexico

China
200% 4%
UK China
Korea
U.S. U.S.
150% Korea
2%
Germany
UK
100%
Mexico
0%
50% Japan Germany

0% -2%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '08 '10 '12 '14 '16 '18 '20 '22
China's three different bond markets China's onshore bond market by type of issuer
As of March 31, 2023 USD trillions, as of March 31, 2023
$3.0
Counted as
$2.72 government debt,
officially

Value: USD$7.8 trillion (the largest) $2.5 $2.37

Onshore CNY Average credit rating: A+
(CNY) market*
Average yield-to-maturity: 2.81%
$1.98
$2.0

$1.5
Offshore
foreign Value: USD$404 billion (the middle)
currency Average credit rating: A-
market** Average yield-to-maturity: 7.18%
$1.0

Offshore Value: USD$31 billion (the smallest) $0.5 $0.41

CNY (CNH)
Average credit rating: AA-
market*** $0.22
Average yield-to-maturity: 3.14%
$0.07 $0.04
$0.0
Govt/Govt Bank Regional Other Gov. Finance Industrials Utility
Sponsored Gov. Related
Onshore government bond yields Yield of onshore corporate bonds*
% per annum Basis points
5.0% 1,000
AAA AA A
800
4.5%
600

400
4.0%
10-year 200

0
3.5%
-200
'15 '16 '17 '18 '19 '20 '21 '22 '23
3.0% Value of defaults in onshore market
CNY billion
250
2.5% 5-year State owned enterprises (SOE)
200
Privately owned enterprises (POE)
120
2.0% 150 19 33 52
1-year
100
3
1.5% 132 114
50 118 102
6 5 61
1 7 20 15
20 34
0
1.0% ’14 ‘15 ’16 ‘17 ’18 ‘19 ’20 ‘21 ’22 YTD
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '23
 2 0 18 - 2 0 2 2
Chinese offshore corporate credit spreads 2 0 18 2 0 19 2020 2021 2022 Y TD
Ann.
Basis points, daily
China Re a l
3,000 350 China Agg Esta te HY China Agg China G ovt. China G ovt. China IG China Agg
High yield Investment grade 3.5% 14 . 9 % 9.8% 8.7% - 5.2% 3.6% 4.0%

6 yr. avg. Apr. 30, 2023 G loba l

2,500 300 China G ovt. China HY China G ovt. China Agg China Agg Bonds China G ovt.
HY 954 1,073
3.0% 12 . 7 % 9.3% 8.4% - 5.2% 3.5% 3.7%
IG 161 142

Asia n G loba l Asia n

2,000 250 China IG Bonds Bonds China IG China IG Bonds China IG
0.5% 11. 3 % 9.2% - 0 . 1% - 10 . 1% 3.4% 1. 4 %

Asia n China Re a l Asia n Asia n Asia n

Bonds China IG Esta te HY Bonds Bonds China G ovt. Bonds
1,500 200
- 0.8% 10 . 2 % 8.7% - 2.4% - 11. 0 % 1. 8 % 0.7%

G loba l G loba l G loba l G loba l G loba l

Bonds Bonds China HY Bonds Bonds China Agg Bonds
1,000 150 - 1. 2 % 6.8% 7.5% - 4.7% - 16 . 2 % 1. 8 % - 1. 2 %

China Re a l
Esta te HY China Agg China IG China HY China HY China HY China HY
- 3 . 1% 3.4% 6.6% - 26.3% - 22.5% - 1. 9 % - 6.6%
500 100

Asia n China Re a l China Re a l China Re a l China Re a l

China HY China G ovt. Bonds Esta te HY Esta te HY Esta te HY Esta te HY
- 4.2% 2.8% 6.3% - 37.2% - 36.0% - 7.0% - 10 . 6 %
0 50
'17 '18 '19 '20 '21 '22 '23
 12% Asia ex-
15% China, Korea China, Korea
& Taiwan & Taiwan China, Korea
Korea & Taiwan
18% Korea 17% 12%
Korea 12% 17%
12% Foreign
A-shares Foreign listed
Foreign H-shares A-shares
2% listed H-shares 6% H-shares
listed 10% 4%
9% 8% 6% A-shares
8% P-chips P-chips 5%
8% P-chips
Red-chips 8% 17%
Red-chips
4% Red-chips
4%
May 2019 2%
Weight of China in bond universe and bondNovember
indices2019 December 2021
China: 32% China: 34% China: 35%
100% 1%
3% 6%
of China in bond universe and bond indices
90%
5% 6%
30% 33%
80% 35% Other
39% 37%
36% 38% 49%
50% U.S.
40%
70% Europe,
Middle East
25% & Africa
26%
25%60% Latin
30%
29% 24% America
3% 31%
50% Asia ex-
1% China
18% 22% 27% 33%
18% China
40% 26% 14%
14% 10%
8% 7% 4%
5% 33%
Global bond 30%
universe Global aggregate Local EMD sovereigns USD EMD corporates USD EMD sovereigns
1%
30% 36%
15%
20%
18%

10% 14%
16%
9% 10% 7% 5%
0%
Global bond universe Global aggregate Local EMD sovereigns USD EMD corporates USD EMD sovereigns
Return and volatility of government bonds Return of Chinese bonds versus Asia benchmarks
Annualized total return and volatility, May 2013 – Apr. 2023 Annualized total return, May 2018 – Apr. 2023
6.0% 6.0%
Annualized return China
Annualized volatility Asia benchmark
5.0%
5.0% 5.0% 4.8%
4.4% 4.5%

4.0%
4.0% 4.0%

3.0% 2.9% 2.8% 3.0%

2.4%

2.0% 2.0%
1.5%

1.0%
1.0% 1.0%
0.6%
0.5%

0.0% 0.0%
Chinese Central Chinese Central U.S. Treasuries Corporate Credit Corporate Credit Government Debt
Gov. Bonds (CNY) Gov. Bonds (USD) (USD) (Local ccy) (Local ccy)
Correlation between Chinese and global government bonds
Total return index in USD*, 12-month rolling correlations of monthly returns
1.00

0.80

0.60

Average: 0.33
0.40

0.20

0.00

-0.20 15-year correlation

to Global Aggregate
Treasuries
-0.40 China 0.39
India 0.40
South Africa 0.47
-0.60 Mexico 0.44
U.S. 0.68
UK 0.66
-0.80 Italy 0.69
Japan 0.77
Germany 0.88
-1.00
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Basics Central Bank
Official name: People’s Republic of China (PRC) The central bank is the People’s Bank of China (PBOC)
Formation: c. 2070 B.C. (first pre-imperial dynasty) Target/goal: Maintain stability of the value of the currency and promote
Founding of the State: 1949 economic growth through tools such as open market operations, reserve
requirement ratios, interest rates and lending facilities to banks
Demographics Policy: Mix of quantity and price control
Population: 1.4 billion (2022)
56 ethnic groups, with the majority of the population (92%) being Han Currency
Official language: Mandarin Renminbi (CNY) or Chinese Yuan (¥) is the official currency
Median age: 38.4 (2021)
In foreign exchange markets:
Geography CNY is the onshore CNY traded within China, managed by the PBOC
Capital: Beijing
Largest cities by population: Shanghai, Beijing, Tianjin, Guangzhou, CNH is the offshore currency traded outside of China at a free-floating rate
Shenzhen, Wuhan
Land area: 9.7 million sq. km or 3.7 million sq. mi Equity markets
Size: $11.4 trillion (2022)
Economy
Type: Socialist market economy The onshore market is comprised of Chinese companies listed in
Nominal GDP: US$18.32 trillion (2022) Shanghai and Shenzhen stock exchanges
Nominal GDP per capita: $12,733 (2021)
Gini coefficient: 0.47 (2021) The offshore market is comprised of Chinese companies listed in the Hong
Kong Stock Exchange and overseas
Government
Ruling party: Chinese Communist Party (CCP) Fixed income markets
General Secretary of CCP, President of PRC: Xi Jinping Size: $18.3 trillion (2022)
Premier of PRC: Li Qiang
Legislative body: National People’s Congress (NPC) Onshore bonds are listed in Mainland Chinese exchanges and
denominated in CNY
The General Secretary of the CCP is elected by the Party Congress every 5
years. The President of PRC and the Premier of PRC are elected by the Offshore bonds or “dim sum bonds” are primarily traded in Hong Kong
NPC every 5 years. The Premier has a two term limit while the President of and denominated in CNH
the PRC and the General Secretary of the CCP have no term limit.
Offshore foreign currency bonds are traded in Hong
Kong dollars, U.S. dollars or euros.
All indexes are unmanaged and an individual cannot invest directly in an index. Index returns do not include
fees or expenses.
Equities:
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. The index includes a
representative sample of 500 leading companies in leading industries of the U.S. economy. The S&P 500 Index
focuses on the large-cap segment of the market; however, since it includes a significant portion of the total value of the
market, it also represents the market.
The MSCI® EAFE (Europe, Australia, Far East) Net Index is recognized as the pre-eminent benchmark in the United
States to measure international equity performance. It comprises 21 MSCI country indexes, representing the developed
markets outside of North America.
The MSCI Europe IndexSM is a free float-adjusted market capitalization index that is designed to measure developed
market equity performance in Europe. As of June 2007, the MSCI Europe Index consisted of the following 16 developed
market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is
designed to measure the equity market performance of developed and emerging markets. As of June 2009 the MSCI
ACWI consisted of 45 country indices comprising 23 developed and 22 emerging market country indices.
The MSCI ACWI ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM)
countries (excluding the US) and 27 Emerging Markets (EM) countries*. With 2,357 constituents, the index covers
approximately 85% of the global equity opportunity set outside the US.
The MSCI Emerging Markets IndexSM is a free float-adjusted market capitalization index that is designed to measure
equity market performance in the global emerging markets. As of June 2007, the MSCI Emerging Markets Index
consisted of the following 25 emerging market indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic,
Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines,
Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
The MSCI China IndexSM captures large and mid cap representation across China H shares, B shares, Red chips and
P chips. With 148 constituents, the index covers about 84% of this China equity universe. The MSCI China Index was
launched on December 31, 1992.
The MSCI China A Index captures large and mid-cap representation across China securities listed on the Shanghai
and Shenzhen exchanges. The index covers only those securities that are accessible through "Stock Connect". The
index is designed for international investors and is calculated using China A Stock Connect listings based on the
offshore CNY exchange rate (CNH).
The MSCI China Growth Index captures large and mid cap securities exhibiting overall growth style characteristics
across the Chinese equity markets. The growth investment style characteristics for index construction are defined using
five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and
long-term historical EPS growth trend and long-term historical sales per share growth trend.
The MSCI China Value Index captures large and mid-cap Chinese securities exhibiting overall value style
characteristics. The value investment style characteristics for index construction are defined using three variables: book
value to price, 12-month forward earnings to price and dividend yield.
The Shanghai Stock Exchange Composite Index is a capitalization-weighted index. The index tracks the daily price
performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. The index was developed on
December 19, 1990 with a base value of 100.
The China Shenzhen Composite Index is an actual market-cap weighted index that tracks the stock performance of
all the A-share and B-share lists on Shenzhen Stock Exchange. The index was developed on April 3, 1991 with a base
price of 100.
The Hang Seng Index (“HSI”) is the most widely quoted gauge of the Hong Kong stock market. It includes the
largest and most liquid stocks listed on the Main Board of the Stock Exchange of Hong Kong. Stocks are free-float-
adjusted for investability representation, and a 10% capping is applied to avoid single stock domination. The index
was developed on November 24, 1969 with a base price of 100.
The Shanghai Shenzhen CSI 300 Index (“CSI Index”) is a free-float weighted index that consists of 300 A-share
stocks listed on the Shanghai or Shenzhen Stock Exchanges. The Index has been calculated since April 8, 2005,
with a base level of 1000 on 12/31/2004.
The SZSE Composite Index is a stock market index of Shenzhen Stock Exchange. It includes all companies listed
on the exchange.
The Hang Seng China Enterprises Index ("HSCEI") serves as a benchmark that reflects the overall performance of
Mainland securities listed in Hong Kong. The index comprises the largest and most liquid Mainland securities listed in
Hong Kong. Stocks are free float-adjusted for investibility representation, with a 10% capping to avoid single stock
domination. The index was launched on August 8, 1994.
The SME Index comprises the 100 largest and most liquid A-share stocks listed and trading on the SME Board
Market. The index aims to reflect the performance of the Small and Medium Enterprise (SME) Board level. The index
is free-floating, with a base date of May 31, 2010.
The ChiNext Index comprises the 100 largest and most liquid A-share stocks listed and trading on the ChiNext
Market of the Shenzhen Stock Exchange. The index aims to reflect the performance of ChiNext Market level. The
index free-float capitalization-weighted . The index has a base value of 1000 on May 31, 2010.
Fixed income:
The Bloomberg Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four
local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and
securitized fixed-rate bonds from both developed and emerging markets issuers.
The J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI): The CEMBI tracks total returns of US dollar-
denominated debt instruments issued by corporate entities in Emerging Markets countries, and consists of an
investable universe of corporate bonds.
The J.P. Morgan GBI EM Global Diversified tracks the performance of local currency debt issued by emerging
market governments, whose debt is accessible by most of the international investor base.
The J.P. Morgan Emerging Markets Bond Index Global Diversified (EMBI Global Diversified) tracks total
returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign
entities: Brady bonds, loans, Eurobonds. The index limits the exposure of some of the larger countries.
The FTSE Chinese (Onshore CNY) Broad Bond Index measures the performance of a subset of bonds from the
FTSE Chinese (Onshore CNY) Broad Bond Index (CNYBBI) which tracks onshore Chinese yuan-denominated fixed-
rate governments, agencies, and corporations debt issued in mainland China. The index includes bonds that are
traded on the China Interbank Bond Market (CIBM).
The J.P. Morgan Asia Credit Index Core (JACI Core) consists of liquid US-dollar denominated debt instruments
issued out of Asia ex-Japan. The JACI Core is based on the composition and established methodology of the J.P.
Morgan Asia Credit Index (JACI), which is market capitalization weighted. JACI Core includes the most liquid bonds
from the JACI by requiring a minimum $350 million in notional outstanding and a minimum remaining maturity of 2
years. JACI Core also implements a country diversification methodology. Historical returns and statistics for the JACI
Core are available from December 30, 2005.
Fixed income cont.:
The J.P. Morgan Asia Diversified (JADE) Indices track local currency government bonds issued by
countries within the Asia region (excluding Japan). The two main composite series are the JADE Broad and
the JADE Global which provide Diversified exposure to the countries within the region. The JADE Global
excludes countries with capital controls and those not accessible by foreign investors. Launched in March
2016, the JADE Broad/Global indices have daily historical index levels and statistics starting from Dec 31,
2004.
The Bloomberg Global Aggregate - Corporate Index is a flagship measure of global investment grade,
fixed-rate corporate debt. This multi-currency benchmark includes bonds from developed and emerging
markets issuers within the industrial, utility and financial sectors.
The Bloomberg Global Treasury Index tracks fixed-rate, local currency government debt of investment
grade countries, including both developed and emerging markets. The index represents the treasury sector of
the Global Aggregate Index and contains issues from 37 countries denominated in 24 currencies.
The CSI Corporate Bond Index selects eligible corporate bonds listed at Shanghai Stock Exchange and
Shenzhen Stock Exchange, with remaining term to final maturity over 1 year. The index was launched on
June 9, 2003 and is based at 100 to Dec 31, 2002.
Other asset classes:
The Bloomberg Industrial Metals Subindex is composed of futures contracts on aluminum, copper, nickel and
zinc. It reflects the return of underlying commodity futures price movements only. It is quoted in USD.
Definitions:
Price to forward earnings is a measure of the price-to-earnings ratio (P/E) using forecasted earnings. Price to
book value compares a stock's market value to its book value. Price to cash flow is a measure of the market's
expectations of a firm's future financial health. Price to dividends is the ratio of the price of a share on a stock
exchange to the dividends per share paid in the previous year, used as a measure of a company's potential as an
investment.
Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise.
The price of equity securities may rise, or fall because of changes in the broad market or changes in a
company’s financial condition, sometimes rapidly or unpredictably. These price movements may result from
factors affecting individual companies, sectors or industries, or the securities market as a whole, such as
changes in economic or political conditions. Equity securities are subject to “stock market risk” meaning that
stock prices in general may decline over short or extended periods of time.
Real estate investments may be subject to a higher degree of market risk because of concentration in a specific
industry, sector or geographical sector. Real estate investments may be subject to risks including, but not limited
to, declines in the value of real estate, risks related to general and economic conditions, changes in the value of
the underlying property owned by the trust and defaults by borrower.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange
rates and differences in accounting and taxation policies can raise or lower returns. Also, some markets may not
be as politically and economically stable as other nations. Investments in emerging markets can be more
volatile. The normal risks of international investing are heightened when investing in emerging markets. In
addition, the small size of securities markets and the low trading volume may lead to a lack of liquidity, which
leads to increased volatility. Also, emerging markets may not provide adequate legal protection for private or
foreign investment or private property.
Investments in commodities may have greater volatility than investments in traditional securities, particularly if
the instruments involve leverage. The value of commodity-linked derivative instruments may be affected by
changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a
particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and
international economic, political and regulatory developments. Use of leveraged commodity-linked derivatives
creates an opportunity for increased return but, at the same time, creates the possibility for greater loss.
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in
economic or market conditions than other types of investments and could result in losses that significantly exceed
the original investment. The use of derivatives may not be successful, resulting in investment losses, and the cost
of such strategies may reduce investment returns.
There is no guarantee that the use of long and short positions will succeed in limiting an investor's exposure to
domestic stock market movements, capitalization, sector swings or other risk factors. Investing using long and
short selling strategies may have higher portfolio turnover rates. Short selling involves certain risks, including
additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale
positions.
Forecasts, projections and other forward looking statements are based upon current beliefs and
expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the
inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events,
results or performance may differ materially from those reflected or contemplated. Positive yield does not imply
positive return.
J.P. Morgan Asset Management (JPMAM) Global Market Insights Strategy Team as of 04/30/21. There can be
no assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM or
that the past performance or success of any such professional serves as an indicator of such professional's
future performance or success.
The Market Insights program provides comprehensive data and commentary on global markets without reference to products. Designed as a tool to help clients understand the markets and support
investment decision-making, the program explores the implications of current economic data and changing market conditions.
For the purposes of MiFID II, the JPM Market Insights and Portfolio Insights programs are marketing communications and are not in scope for any MiFID II / MiFIR requirements specifically related to investment research.
Furthermore, the J.P. Morgan Asset Management Market Insights and Portfolio Insights programs, as non-independent research, have not been prepared in accordance with legal requirements designed to promote the
independence of investment research, nor are they subject to any prohibition on dealing ahead of the dissemination of investment research.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy,
plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic,
hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any
securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professionals, if any
investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or
investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is
considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of
investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable
indicators of current and future results.

J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored
and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://am.jpmorgan.com/global/privacy.

Any long form nomenclature for references to China; Hong Kong; Taiwan; and Macau within this research material are Mainland China; Hong Kong SAR (China); Taiwan (China); and Macau SAR (China).

This communication is issued by the following entities:

In the United States, by J.P. Morgan Investment Management Inc. or J.P. Morgan Alternative Asset Management, Inc., both regulated by the Securities and Exchange Commission; in Latin America, for intended recipients’ use
only, by local J.P. Morgan entities, as the case may be.; in Canada, for institutional clients’ use only, by JPMorgan Asset Management (Canada) Inc., which is a registered Portfolio Manager and Exempt Market Dealer in all
Canadian provinces and territories except the Yukon and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec and Newfoundland and Labrador. In the United Kingdom, by JPMorgan Asset
Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other European jurisdictions, by JPMorgan Asset Management (Europe) S.à r.l. In Asia Pacific (“APAC”), by the following
issuing entities and in the respective jurisdictions in which they are primarily regulated: JPMorgan Asset Management (Asia Pacific) Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets
(Asia) Limited, each of which is regulated by the Securities and Futures Commission of Hong Kong; JPMorgan Asset Management (Singapore) Limited (Co. Reg. No. 197601586K), which this advertisement or publication has
not been reviewed by the Monetary Authority of Singapore; JPMorgan Asset Management (Taiwan) Limited; JPMorgan Asset Management (Japan) Limited, which is a member of the Investment Trusts Association, Japan, the
Japan Investment Advisers Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency (registration number “Kanto Local
Finance Bureau (Financial Instruments Firm) No. 330”); in Australia, to wholesale clients only as defined in section 761A and 761G of the Corporations Act 2001 (Commonwealth), by JPMorgan Asset Management (Australia)
Limited (ABN 55143832080) (AFSL 376919). For all other markets in APAC, to intended recipients only.

For U.S. only: If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
Copyright 2023 JPMorgan Chase & Co. All rights reserved

Prepared by: David Kelly, Marcella Chow, Gabriela Santos, Chaoping Zhu, Adrian Tong, Jennifer Qiu, Brandon Hall, Kathleen Clum, and Mary Park Durham.

Unless otherwise stated, all data are as of April 30, 2023 or most recently available.

Guide to China

0903c02a82b00545