JPMorgan China Equity Strategy: Anti-Involution Dual Track — Destocking Winners vs. Exporters Caught in Trade-Relations Uncertainty
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JPMorgan's China equity strategy note packages its quarterly assessment of the 'anti-involution' campaign across listed Chinese companies. The chart pack tracks two operational gauges sector by sector — capital expenditure and days of inventory — plus net profit margins, alongside year-on-year revenue growth for industries covered by the anti-involution review. Valuation is addressed through forward twelve-month P/E multiples broken out by sector grouping, allowing readers to compare operating trends against market pricing. A second theme is revenue exposure to overseas markets, presented for both MSCI China (MXCN) and CSI 300 constituents, quantifying how much listed-company revenue depends on external demand — the lens for separating destocking winners among domestically oriented sectors from exporters exposed to trade-relationship uncertainty. The final exhibit shows year-on-year changes in capex and inventory days by sector, excluding financials and real estate, isolating the real-economy footprint of supply-side discipline. Together the charts frame a dual-track narrative consistent with the report's title. The exhibit set is primarily diagnostic, providing a monitoring dashboard for the campaign's progress rather than new point forecasts.
Key exhibits
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