Are you approaching property assets right now from a fund manager perspective.
Well the credit market has been laser focused on property markets.
Risk is in for months. Now what I do want to point out is that this pilot property tax a roll out which just came out recently
will bear some impact on the market. It admits that the already weak consumer buying sentiments and demand which is critical for
the entire property sector is to accelerate a cash recovery to deliver. And the details of the property tax implementation has
not been crystallized yet. It's perhaps a go. You know the parallel to city by city or province by province rather than a
universal policy. Therefore the longer term impact is yet to be seen by the one seen prosperous swing for certain is the.
The buyers would wait. And
however there's not all that news. The home prices the housing services and the property service providers has been hit hard as
they are related to this overall concern. And after a hefty valuation correction in some of these names that could become
attractive because this area where also is not only driven by incremental housing demand but also driven by existing lifestyle
operate. So we are looking at those names as a potential opportunity to scope out but well will remain to be very
cautious about the credit markets related to property names. OK. So that takes us into equity then because the way you
described it. Interesting. You mentioned that some of these related sectors could be attractive enough from a valuation
perspective. Do you think we're close to those valuations or are you still cautious.
Well one can never predict. Is this the absolute bottom 6:00 or you are still at five o'clock. Right. So I seem to take a take
you know carefully deep into the position might be the way to build it.
When it comes to just the sentiment though it seems like it's it's shifting a little bit more to the positive side when it
comes the regulatory overhang in markets whether it's in property whether it's in tech. We had a guest from JP Morgan
earlier saying look this rally that we're seeing seems to be justified. Did you subscribe to that view to.
Well I think the offshore markets saw some recovery in these names
but this recovery I will. I wanted to caveat that's not only a Coke sectors or names it that has a severe valuation
correction but also they need to have quality with a strong balance sheet which is the sustainable rose even if the roses
step it down. But just do sustainable growth and which will not to suffer a foundational business model automation. And these
are the conditions to look at the to look at the peaks. It's not a universal single sided recovery yet.
OK so what pockets do you actually look for when it comes to you know that could potentially be shielded away from the massive
earnings downgrades that we're seeing in China right now. What are certainly some some silver linings that you're seeing
with it given how scary as an example people are already concerned about the central government procurement program. But
you know mission drug companies and biotech space I think they will be relatively more immune to the and programs of pricing
pressure. And that's a place where we're looking to end to some of the Internet platform companies as an infrastructure to the
economy that we are also looking to. Earnings season is here. Hundreds of companies are set to report
results. When I. Vanessa anything particular you're watching. Well for the China market earnings well we still watch head very
big earnings dispersion its entire sector and interest sector. So again the market is going to be choppy and perhaps at the
contrarian manager as well do better than the gross bias.