E63: China & India Equities — Market Drivers and Risks in 2026
KEY TAKEAWAYS
- Global emerging markets (EM) equities show a constructive outlook for 2026, driven by solid fundamentals with 17% EPS growth, anticipated Fed rate cuts, and attractive AI stock valuations, making them a strategic focus for investment outlook
- China equities are expected to benefit from the 15th five-year plan, emphasizing tech self-reliance and export growth. However, challenges include property market outlook and aging populations.
- India equities anticipate an earnings recovery in FY27, supported by robust domestic flows and government policies. Key risk factors include earnings disappointments and the impact of global trade deals.
Erica Poon Werkun sits down with Pierre Lau and Surendra Goyal to discuss the prospects for China and India equities in 2026. Topics include our views on emerging markets, the direction of China's fiscal policies, and India's macro environment.
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Erica Poon Werkun, Head of Research for JANA & Asia South
Erica joined Citi during June 2025 as JANA and Asia South Deputy Head of Research and became the Interim Head of Research for JANA & Asia South in September 2025. She was Managing Director and Head of Asia Pacific Research at Credit Suisse from 2019 to 2024 and previously worked at UBS for 15 years, as Head of Research in China, and before that as Head of Asian Consumer & Internet Research. Before joining UBS, she was at Goldman Sachs covering the Consumer and Technology sectors in Hong Kong and Taiwan. Erica also worked in technology investment banking for CSFB in Palo Alto and Hong Kong, and Cowen in New York and San Francisco. Erica holds a BS in Economics from the Wharton School, University of Pennsylvania, is a board member of the Wharton Executive Board for Asia and is a recipient of the Individual Achievement Award for Women in Finance Asia.
Pierre Lau, China Equity Strategist
Pierre Lau, a Managing Director, is the China Equity Strategist and Head of Pan-Asia Utilities Research. Based in Hong Kong, Pierre joined Citi Research in 2006 from ABN Amro, where he was Head of Asia Utilities and Infrastructure Research from 2003. Pierre has 26 years of experience in utilities research, including six in project financing and 20 in equity research, and has been covering China stocks since 2000.
Surendra Goyal, Head of India Research
Surendra Goyal is a Managing Director at Citi Research and the Head of India Equity Research. He is also the head Analyst covering the Indian IT Services, Media & Education sectors. Prior to joining Citi in 2006, he was an analyst with SSKI Securities. He has experience in software development and has worked with HCL and Microsoft.
