On January 8th, Tom Clough, the Global Investment Manager for Asian Equities at Schroders, published "Outlook for 2024: Asian Equities." He believes that 2024 will be a year for prudent investors focusing on fundamental factors and bottom-up stock selection to obtain substantial investment returns. Institutions will continue to invest in companies with attractive long-term fundamental factors and valuation potential, as he sees this as key to generating lasting, stable returns for investors. He suggests focusing on three areas: world-class Chinese exporters, some semiconductor companies in South Korea and China Taiwan, and monopolistic banks in the Asian market. Driving Factors of the Asian Stock Market in 2023 At the beginning of 2023, the financial markets were very optimistic about the recovery of Chinese consumption. However, pressure on the mainland real estate market also led to large-scale selling of consumer stocks. In 2024, the institution expects a strong performance from the semiconductor industry and the Indian financial market. Concerns about inventory issues caused South Korean and Chinese Taiwan stocks to be heavily sold off, followed by a significant rebound. In India, strong performance in fixed asset investment led by local government, coupled with support from the "China + 1" model, drove strong valuation growth for manufacturing companies. Key Investment Themes in the Asian Financial Markets in 2024 Key themes that may dominate the financial markets in 2024 include the condition of the mainland real estate market and whether the monetary and fiscal expansion policies adopted by the People's Bank of China in 2023 can boost consumption. Additionally, increased unsecured loans in India may lead to a cycle of bad loans, affecting economic growth. Major Investment Opportunities in 2024 The institution still believes that Asian equities will remain attractive in 2024 and trusts that by adhering to a bottom-up stock selection strategy focusing on quality companies, they can seize the above investment themes. The Asian Equities team at the institution particularly favors several areas: Firstly, selectively chosen world-class Chinese exporters with large global market shares, whose valuations are becoming increasingly attractive. Secondly, some semiconductor companies in South Korea and China Taiwan, which are technologically advanced compared to their US counterparts. This diversified industry is expected to provide stable returns. Lastly, some monopolistic banks operating in Asian markets, with attractive valuations. These countries generally have deposit deficits, and these banks can consolidate their market share and use low-cost funds to lend to local customers for high returns.