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Speaker 1: Let's get to Chow She who is financial advisor and

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Speaker 1: managing director at ubs ms ChIL. Thanks very much for

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Speaker 1: joining us. So we had this big rally today that

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Speaker 1: the problem with bad news is good news as a

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Speaker 1: mantra is that you need to know what the bad

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Speaker 1: news is, and the FED has already told us to it.

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Speaker 1: It isn't the GDP data. The FED has said it

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Speaker 1: would have to be jobs, and there has been no

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Speaker 1: crack there. So my question to you is, is this

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Speaker 1: front running of the FED foolish? Well? I think uh

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Speaker 1: FED has kept it pretty open from the comments yesterday,

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Speaker 1: you know a strong labor market is offsetting. They certainly

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Speaker 1: feel the strong labor markets offsetting potentially slowing economy. But

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Speaker 1: I think the two very important key takeaways is that

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Speaker 1: is solely focused on getting inflation under control, and um,

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Speaker 1: they're going to be really focusing their attention on the

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Speaker 1: August CPI reported jobs report, and that a really guide

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Speaker 1: the FED whether you know, if it does make a

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Speaker 1: dubbish pivot if rates are gonna, you know, how race

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Speaker 1: is gonna, how how fast race is going to continue

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Speaker 1: to rise? She Child. This is Stephen Angel, also in

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Speaker 1: Hong Kong as a result of course and the offshoots

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Speaker 1: of what the FED did and also this earning season,

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Speaker 1: and you are neutral equities generally right now in this

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Speaker 1: in this holding pattern, if you will, But have any

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Speaker 1: of the results in tech encouraged you that they can

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Speaker 1: whether any potential recession be a soft landing or a

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Speaker 1: deeper recession. I think, uh, whether we're in a recession

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Speaker 1: or not is not as important to our investors because

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Speaker 1: you know, we we want to focus on a portfolio, UH,

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Speaker 1: and any adjustment to a portfolio to be able to

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Speaker 1: whether any scenario. So you know, at this point, with

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Speaker 1: the strong earnings, with the stronger earnings growth, I mean

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Speaker 1: it's blowing, but it's not thinking at this point, the

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Speaker 1: good numbers coming out of the tech firm, uh, you know,

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Speaker 1: it definitely is seeing investor confidence. So we we continue

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Speaker 1: wanted to focus on quality uh in Indi individual companies

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Speaker 1: rather than any particular sector. At this point, I want

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Speaker 1: to also get your comments on the She Biden meeting.

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Speaker 1: The US version of the of the talks was that

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Speaker 1: it was candid and substantive and the Chinese side was

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Speaker 1: really championing uh she threatening the U S side with

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Speaker 1: any any Taiwan moves. Uh so, so, I guess we

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Speaker 1: can say that there was no real bromance there. But

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Speaker 1: it's a good sign, isn't it that they're agreeing to

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Speaker 1: meet in person. Yes, definitely, I mean we're definitely making

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Speaker 1: some progress there. And you know our outlook. You know,

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Speaker 1: we still favorite China as our favorite market for for

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Speaker 1: Asia right now. And you know, China equities will continue

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Speaker 1: to be bow withal in the near term given a

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Speaker 1: sharp growth slowdown, and and it's going to be a

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Speaker 1: bumpy road to recovery. So uh, you know how much

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Speaker 1: politics it's going to play into this. I mean, it's

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Speaker 1: going to be be everything here. But as you said,

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Speaker 1: it's great that is making progress. At this point, we're

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Speaker 1: discussing the markets and she before we went to the

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Speaker 1: break there, you had mentioned that China is one of

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Speaker 1: your favorite markets right now in the Asia Pacific. The

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Speaker 1: Devil's Advocate would say growth is stagnant at best, COVID

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Speaker 1: zero is still in place, lockdowns are still a threat.

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Speaker 1: I'm in day six of quarantine in Hong Kong. It's

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Speaker 1: not conducive to doing much business. Uh. How do you

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Speaker 1: where do you find the optimism? Well, China has certainly

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Speaker 1: intensified policy support and que to after COVID hit um

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Speaker 1: accelerating special fawn issue in increasing tax rebates, pumping more

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Speaker 1: liquidity into the markets, and of course COVID restruction have

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Speaker 1: limited the sectness of these policies. But we do feel

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Speaker 1: that the government will intensify policy support and infrastructure investment

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Speaker 1: in second half, and we expect a rebound and add

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Speaker 1: growth led by recovery and e commerce game apt in

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Speaker 1: second half as well. So we are looking at improving

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Speaker 1: outlook for third quarter. So hopefully, um, you know that

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Speaker 1: that will it will be a bumpy ride to recovery,

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Speaker 1: but we our outlook is it's slightly more positive than

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Speaker 1: it was in the first quarter. Some might some might

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Speaker 1: doubt that given that we just had to wrap up

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Speaker 1: of this Politburo meeting and they did not announce any

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Speaker 1: big stimulus. So the takeaway from that for many people

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Speaker 1: is that China is giving up on its on its

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Speaker 1: growth target of about five and a half percent. Now

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Speaker 1: that that, you know, may not speak to whatever is

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Speaker 1: happening organically. Organically, maybe things pick up, but it's certainly

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Speaker 1: not because of a lot of stimulus from China. At

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Speaker 1: least at this point. Yes, and and China's um. You know,

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Speaker 1: the government's definitely trying to manage downside risk and in

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Speaker 1: its allocating a lot of local government power and flexibility.

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Speaker 1: So we do hope that further policy uh, they will

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Speaker 1: have further policy support and hopefully the markets as the

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Speaker 1: COVID I mean they're going to stick to the zero

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Speaker 1: COVID policy, but hopefully you know that would at least

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Speaker 1: the restrictions will will will start to slow down UM,

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Speaker 1: and it will help propel economy a bit further. How

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Speaker 1: much of a springboard do you think there will be

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Speaker 1: from the Ali Baba decision to make Hong Kong a

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Speaker 1: secondary primary listing, I should say a dual primary listing

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Speaker 1: here where they can tap into those mainland investors through

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Speaker 1: the stock connect. Is there going to be a wave

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Speaker 1: of other Chinese companies that will be doing that will

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Speaker 1: give the lift to the markets that you predict, Yes,

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Speaker 1: that's a certainly on front and center with the a

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Speaker 1: d R um in the US and also more listening

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Speaker 1: coming up in Hong Kong. That is a kind of

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Speaker 1: a risk there, but also probably will be more of

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Speaker 1: a trend. But it all depends on how the negotiations

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Speaker 1: go with the us UM and where the general macro

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Speaker 1: economy is going to be. But if that's the direction

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Speaker 1: is going, then you know we're going to see definitely

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Speaker 1: see some changes, uh in in in the performance of

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Speaker 1: Chinese equities as well. You know, we have seen some

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Speaker 1: extra support for property companies and and one thing we

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Speaker 1: did get from the polar Buro meeting this line that

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Speaker 1: they're calling on the top leadership to make sure that

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Speaker 1: the housing projects are actually completed. And that follows the

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Speaker 1: mortgage boycotts. Those mortgage boycotts, Miss Chill seemed to have

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Speaker 1: touched the nerve in China. UM. What what are your

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Speaker 1: latest thoughts on the property sector. Well, that's one of

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Speaker 1: the biggest concerns right now is the property sector and

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Speaker 1: it's and and then more importantly it's deep connection with

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Speaker 1: the banking and death system. Uh. You know, it could

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Speaker 1: have large still over effects. So uh we do hope

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Speaker 1: at China government, we are seeing that they are trying

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Speaker 1: to manage to down thy risk um and expect further

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Speaker 1: policy easing to probably underpin some of the homebuyer's confidence

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Speaker 1: and avoid further deterioration of developers financing and and reduce

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Speaker 1: some of the still over effects into the company into

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Speaker 1: the economy. Alright, well, we are out of time unfortunately,

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Speaker 1: nice discussion. Thanks very much for joining us. She Chell

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Speaker 1: or Chell she financial advisor, Managing director at u B

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Speaker 1: S with us live here