Industry Multiples in China Report 2019 Second Edition

We are pleased to launch the second edition of our report, Industry Multiples in China. This report provides an overview of the market multiples of companies in 11 major industries in the MSCI China Index based on the latest financial metrics available as of September 30, 2019.

Highlights include:

• Notwithstanding global headwinds affecting the information technology, healthcare and financial industries and highly volatile market settlement results, P/E multiples for most industries as of Q3 2019 landed at similar levels as compared to Dec 31, 2018. 
• Steady financial industry multiples may be attributed to proactive but prudent fiscal policy initiatives that are expected to offset negative impacts from trade tensions.
• Information technology’s P/E multiples were buoyed partly by the July debut of Shanghai’s Science and Technology Innovation Board, despite reduced fundraising activity and smaller investment volumes overall compared to 2018.
• Healthcare multiples have recovered from the previous year’s slump due to increased spending in the sector and China’s fast-growing market for medical devices and wearables.