1 00:00:13,720 --> 00:00:16,919 Speaker 1: Hello, and welcome to What Goes Up, a weekly markets podcast. 2 00:00:17,440 --> 00:00:19,479 Speaker 1: My name is Mike Reagan and I'm a senior editor 3 00:00:19,520 --> 00:00:22,479 Speaker 1: at Bloomberg. My co host, Bildata hi Rich is taking 4 00:00:22,480 --> 00:00:26,079 Speaker 1: a well deserved vacation, and this week on the show, Well, 5 00:00:26,280 --> 00:00:29,240 Speaker 1: the war in Ukraine and the federal reserves efforts the 6 00:00:29,280 --> 00:00:32,480 Speaker 1: tame inflation have dominated the storylines for markets this year, 7 00:00:32,960 --> 00:00:36,159 Speaker 1: but another important development that hasn't gotten as much attention 8 00:00:36,560 --> 00:00:39,000 Speaker 1: is the situation in China, where a flare up in 9 00:00:39,040 --> 00:00:42,600 Speaker 1: the COVID virus caused extended lockdowns in Shanghai and other 10 00:00:42,640 --> 00:00:46,479 Speaker 1: parts of the country. China's COVID zero policies of crippled 11 00:00:46,560 --> 00:00:49,720 Speaker 1: growth in the world's second largest economy and prolonged supply 12 00:00:49,800 --> 00:00:53,320 Speaker 1: chain issues around the globe. And while many who were 13 00:00:53,360 --> 00:00:56,000 Speaker 1: stuck in lockdown in China probably wish they were somewhere else, 14 00:00:56,440 --> 00:00:59,840 Speaker 1: one analyst and portfolio manager actually traveled into the country 15 00:01:00,240 --> 00:01:02,560 Speaker 1: to see how the economy was operating and to try 16 00:01:02,600 --> 00:01:05,400 Speaker 1: to visit some of the company she covers. We'll talk 17 00:01:05,440 --> 00:01:07,800 Speaker 1: to her about her journey into COVID zero and what 18 00:01:07,880 --> 00:01:11,200 Speaker 1: she learned about how China's economy has changed in recent years. 19 00:01:11,640 --> 00:01:15,040 Speaker 1: Well let's meet her. Her name is Winting Shen. She's 20 00:01:15,080 --> 00:01:19,640 Speaker 1: the co lead portfolio manager of the China Equity strategy 21 00:01:19,760 --> 00:01:23,399 Speaker 1: at Harding Lovener. One saying, welcome to the show, Marty, Mike, 22 00:01:24,080 --> 00:01:26,560 Speaker 1: thank you for having me. Oh, it's it's great to 23 00:01:26,600 --> 00:01:30,200 Speaker 1: talk to you all the way from China. Will tell us, though, 24 00:01:30,680 --> 00:01:33,160 Speaker 1: why don't we start a little bit and just introduce yourself. 25 00:01:33,200 --> 00:01:35,880 Speaker 1: Tell us what you do at Harding Lovener. Um, I 26 00:01:35,959 --> 00:01:39,560 Speaker 1: know you help manage the China strategy, but tell us 27 00:01:39,560 --> 00:01:41,640 Speaker 1: a little bit about your background and how you got 28 00:01:41,640 --> 00:01:44,520 Speaker 1: to this role. Sure. So, I've been at Parting Lovener 29 00:01:44,680 --> 00:01:48,400 Speaker 1: for a little verse six years now, and I am 30 00:01:48,640 --> 00:01:52,040 Speaker 1: a portfolio manager of the Chinese Aquity strategy and at 31 00:01:52,080 --> 00:01:55,600 Speaker 1: the same time I'm a China analyst, so cover a 32 00:01:55,760 --> 00:02:03,360 Speaker 1: range of different sectors consumer, Internet, industrial, companies, you name it. 33 00:02:03,960 --> 00:02:07,200 Speaker 1: So typically I travel, you know, twice a year to 34 00:02:07,280 --> 00:02:10,560 Speaker 1: China and you know, meet with companies. But this time 35 00:02:10,600 --> 00:02:13,320 Speaker 1: I'm doing it a little differently, a little differently to 36 00:02:13,600 --> 00:02:15,919 Speaker 1: say the least. So, so tell us about this. Um, 37 00:02:15,919 --> 00:02:18,080 Speaker 1: I guess it's been a couple of years since you've 38 00:02:18,120 --> 00:02:20,800 Speaker 1: been able to travel to China. I would assume, and 39 00:02:20,800 --> 00:02:23,360 Speaker 1: and you decided to go make a go for it 40 00:02:23,480 --> 00:02:26,239 Speaker 1: during COVID zero. How did that all come about? And 41 00:02:26,240 --> 00:02:29,000 Speaker 1: and just tell us about the experience of actually, you know, 42 00:02:29,080 --> 00:02:34,919 Speaker 1: traveling into China during this phase of COVID. Yeah, absolutely so. 43 00:02:35,320 --> 00:02:38,920 Speaker 1: In fact, I started to plan this trip last year 44 00:02:39,520 --> 00:02:42,520 Speaker 1: and I was looking at the windows, if you will, 45 00:02:42,639 --> 00:02:46,520 Speaker 1: to to do this trip, and it looks like, you know, 46 00:02:47,520 --> 00:02:51,960 Speaker 1: between Olympics might be a little difficult the Winter Olympics, 47 00:02:52,040 --> 00:02:58,040 Speaker 1: which happened during February UM. In fact, the large part 48 00:02:58,080 --> 00:03:01,240 Speaker 1: of the flights have been canceled in that time. So 49 00:03:01,880 --> 00:03:05,400 Speaker 1: I just got a ticket which was immediately after the 50 00:03:05,440 --> 00:03:09,520 Speaker 1: Winter Olympics. That was the only ticket that I was 51 00:03:09,560 --> 00:03:12,679 Speaker 1: able to get, and I just jumped on it. And 52 00:03:12,800 --> 00:03:15,560 Speaker 1: later I was told that some people's tickets were canceled 53 00:03:15,639 --> 00:03:18,800 Speaker 1: eight times. So I was glad that I wasn't even 54 00:03:18,880 --> 00:03:22,480 Speaker 1: able to board this flight. And so and then you 55 00:03:22,639 --> 00:03:26,320 Speaker 1: landed and you immediately went into like a quarantine right 56 00:03:26,320 --> 00:03:31,040 Speaker 1: at a hotel. Yes, So the flight was originally dustined 57 00:03:31,080 --> 00:03:34,600 Speaker 1: first Shanghai, and it was looking like the city was 58 00:03:35,320 --> 00:03:38,800 Speaker 1: entering into a quarantine as we flew, so we were 59 00:03:38,840 --> 00:03:43,400 Speaker 1: rerouted to another city called Fujo, which is right across 60 00:03:44,360 --> 00:03:47,280 Speaker 1: the Taiwan straight just to give you an idea where 61 00:03:47,280 --> 00:03:51,480 Speaker 1: it is. Um So, we were put into a quarantine 62 00:03:51,520 --> 00:03:56,600 Speaker 1: hotel for fourteen days, and that was really the phase 63 00:03:56,720 --> 00:03:59,320 Speaker 1: one of the quarantine. And then there there comes a 64 00:03:59,400 --> 00:04:03,560 Speaker 1: second hearts, which is that you know your city of destination. 65 00:04:04,080 --> 00:04:07,760 Speaker 1: So fourteen days in one hotel room, you must have 66 00:04:07,800 --> 00:04:12,480 Speaker 1: finished Netflix. I guess. I tell people it was really 67 00:04:12,640 --> 00:04:15,880 Speaker 1: three months because I came to China on March thirty 68 00:04:16,000 --> 00:04:19,920 Speaker 1: one and I finished the entire quarantine right before the 69 00:04:20,360 --> 00:04:24,360 Speaker 1: May one holiday. So it's March to May three months. 70 00:04:26,720 --> 00:04:29,760 Speaker 1: That's pretty funny. And so so you've finally been able 71 00:04:29,800 --> 00:04:32,080 Speaker 1: to get out and move about the country a little bit. 72 00:04:32,080 --> 00:04:34,800 Speaker 1: Are you able to visit the companies you cover and 73 00:04:34,920 --> 00:04:38,920 Speaker 1: invest in? Yes, it's it's pretty amazing. I'm finding my 74 00:04:39,000 --> 00:04:43,120 Speaker 1: way around cities. So I have been to six cities 75 00:04:43,240 --> 00:04:47,680 Speaker 1: at this point where our companies are based. And it's 76 00:04:47,720 --> 00:04:52,120 Speaker 1: pretty amazing that the companies UM are. You know, they 77 00:04:52,160 --> 00:04:56,200 Speaker 1: are taking the risks by accepting my meeting requests. But 78 00:04:56,800 --> 00:05:00,960 Speaker 1: wherever I go, I just find overwhelming hospita quality from 79 00:05:01,040 --> 00:05:04,960 Speaker 1: people uh to to not only see me in real 80 00:05:05,000 --> 00:05:07,880 Speaker 1: life to seeing each other in real life, but also 81 00:05:08,320 --> 00:05:11,520 Speaker 1: looking to find out from me, you know, what is 82 00:05:11,680 --> 00:05:15,520 Speaker 1: happening out there and what what kind of impressions have 83 00:05:15,640 --> 00:05:19,760 Speaker 1: shifted around China out there, So you know, it's great 84 00:05:19,880 --> 00:05:23,200 Speaker 1: excitement to see each other. Can you tell us about 85 00:05:23,240 --> 00:05:25,600 Speaker 1: some of the companies you visited, which which ones are 86 00:05:25,640 --> 00:05:29,920 Speaker 1: in your coverage area? Yeah? Sure, So. One one interesting 87 00:05:30,000 --> 00:05:34,200 Speaker 1: observation that I, UM I I saw during the pandemic 88 00:05:34,400 --> 00:05:38,160 Speaker 1: actually uh you know, probably dating from a couple of 89 00:05:38,240 --> 00:05:42,800 Speaker 1: years ago, was um this entire rise of you know, 90 00:05:43,279 --> 00:05:48,080 Speaker 1: local companies not only in consumer brands, but also in 91 00:05:48,440 --> 00:05:53,440 Speaker 1: manufacturing spaces. So I have been seeing some companies during 92 00:05:53,480 --> 00:05:57,840 Speaker 1: this visit. Um, you know, companies that are uh you know, 93 00:05:57,960 --> 00:06:02,280 Speaker 1: replacing global suppliers if you will, um, you know, they 94 00:06:02,279 --> 00:06:07,640 Speaker 1: are expanding their market share. The companies have invested are 95 00:06:07,800 --> 00:06:11,480 Speaker 1: R and D much higher than other spaces, and they 96 00:06:11,480 --> 00:06:15,080 Speaker 1: have close to that that you know, gap with their 97 00:06:15,120 --> 00:06:19,760 Speaker 1: global peers, if you will. So, uh, companies making inverters 98 00:06:19,800 --> 00:06:23,680 Speaker 1: and several motors. For example, a company called Innovans which 99 00:06:23,720 --> 00:06:27,440 Speaker 1: is based in Shenjen, And I've seen this company over 100 00:06:27,480 --> 00:06:31,280 Speaker 1: the years and now seeing them in the a new headquarter, 101 00:06:31,400 --> 00:06:35,800 Speaker 1: which is pretty exciting. And also, um, you know a 102 00:06:35,839 --> 00:06:40,000 Speaker 1: company called shan Huai making precision gears in hang Joe, 103 00:06:40,160 --> 00:06:46,160 Speaker 1: which is another city that I visited. Um also consumer companies, 104 00:06:46,560 --> 00:06:49,920 Speaker 1: they're getting more domestic business. I guess is that just 105 00:06:50,760 --> 00:06:54,720 Speaker 1: a function of COVID having made it very much more 106 00:06:54,720 --> 00:06:59,240 Speaker 1: difficult to sort of import and export uh equipment that 107 00:06:59,279 --> 00:07:03,560 Speaker 1: they're they're actually supplying um, domestic Chinese companies more than 108 00:07:03,600 --> 00:07:07,039 Speaker 1: they used to. Yeah, there's definitely that element to it. 109 00:07:07,120 --> 00:07:13,560 Speaker 1: But I would also say even dating during the trade wars, 110 00:07:13,640 --> 00:07:18,080 Speaker 1: some companies suddenly realized that there's this you know, the 111 00:07:18,200 --> 00:07:22,040 Speaker 1: supply chain safety concerns. Some components might not be available 112 00:07:22,200 --> 00:07:25,960 Speaker 1: to them at some day that they're they don't even 113 00:07:26,000 --> 00:07:31,040 Speaker 1: know of. So they have started this contingency planning process 114 00:07:31,160 --> 00:07:35,880 Speaker 1: and scramble into to find out what local suppliers could 115 00:07:35,880 --> 00:07:39,840 Speaker 1: there be. So they started this process and this helped 116 00:07:40,240 --> 00:07:44,800 Speaker 1: these local companies to really climb up that that learning 117 00:07:44,800 --> 00:07:49,480 Speaker 1: curve by having these relationships and you know, manufacturing larger scales, 118 00:07:49,560 --> 00:07:52,640 Speaker 1: and that helped their capability to move up over the 119 00:07:52,720 --> 00:07:56,240 Speaker 1: last few years as well. And what sort of level 120 00:07:56,280 --> 00:08:00,240 Speaker 1: are they operating at? Our most companies in the the 121 00:08:00,280 --> 00:08:03,440 Speaker 1: manufacturing and that you visited, or they sort of back 122 00:08:03,480 --> 00:08:06,120 Speaker 1: to or is it, you know, is the pandemic still 123 00:08:06,680 --> 00:08:09,040 Speaker 1: keeping them at somewhere below a d percent of what 124 00:08:09,120 --> 00:08:13,560 Speaker 1: they formerly you know, their former capacity. Yeah. Absolutely, some 125 00:08:13,800 --> 00:08:19,800 Speaker 1: companies are you know, really feeling the pinch from the pandemic, 126 00:08:19,880 --> 00:08:24,520 Speaker 1: the logistics pains, and while other companies located in cities 127 00:08:25,080 --> 00:08:29,520 Speaker 1: which are better managed, for example Shinjin Um which is 128 00:08:29,920 --> 00:08:33,840 Speaker 1: very close to Hong Kong, actually they are feeling less 129 00:08:33,920 --> 00:08:37,480 Speaker 1: less pain than than those other companies based in Shanghai. 130 00:08:37,600 --> 00:08:42,320 Speaker 1: So I think Shinjin is is better managed because of 131 00:08:42,400 --> 00:08:48,240 Speaker 1: its rolling testing policies, which basically requires people to produce 132 00:08:48,320 --> 00:08:53,280 Speaker 1: a uh COVID test of voluntarily every forty eight to 133 00:08:53,559 --> 00:08:57,520 Speaker 1: seventy two hours. So when when I was in shan Jen, 134 00:08:57,640 --> 00:09:01,640 Speaker 1: I was I was even a little tighter on myself 135 00:09:01,679 --> 00:09:04,680 Speaker 1: and asked myself to to to get a test every day, 136 00:09:04,840 --> 00:09:07,880 Speaker 1: so I get a test when the lines are smaller, 137 00:09:07,920 --> 00:09:11,040 Speaker 1: but still takes like you know, forty minutes to an 138 00:09:11,120 --> 00:09:14,120 Speaker 1: hour every day from me to get those tests. But 139 00:09:14,400 --> 00:09:17,719 Speaker 1: you know, under zero COVID, I think that is the 140 00:09:18,559 --> 00:09:23,520 Speaker 1: least invasive way if you will to maintain that, you 141 00:09:23,559 --> 00:09:27,600 Speaker 1: know that daily life, and Shenzhen was able to more 142 00:09:27,679 --> 00:09:30,920 Speaker 1: or less, you know, not quite lockdown as hard as 143 00:09:30,920 --> 00:09:33,200 Speaker 1: Shanghai did. I guess in this latest wave is that 144 00:09:33,440 --> 00:09:36,520 Speaker 1: they just the virus didn't really crop up there again, 145 00:09:36,720 --> 00:09:39,640 Speaker 1: like it wasn't Shanghai, I guess. So Shenngen did have 146 00:09:39,800 --> 00:09:44,199 Speaker 1: their own chapter of lockdown in March, but they reacted 147 00:09:44,480 --> 00:09:49,800 Speaker 1: very quickly. They had a very smooth and quick lockdown 148 00:09:49,880 --> 00:09:54,520 Speaker 1: for for several days, and the city opened up immediately 149 00:09:54,559 --> 00:09:57,559 Speaker 1: after that and has since been pretty much COVID free. 150 00:09:57,960 --> 00:10:02,240 Speaker 1: So this sort of you know, rolling testing is is 151 00:10:02,280 --> 00:10:05,680 Speaker 1: helping the city to be able to find out any 152 00:10:05,760 --> 00:10:10,360 Speaker 1: hot spot very quickly and react to that. But um, 153 00:10:10,840 --> 00:10:15,319 Speaker 1: make no mistake, not every city can afford this arrangement 154 00:10:15,600 --> 00:10:20,560 Speaker 1: because it is a big cost municipal finances to to 155 00:10:20,720 --> 00:10:24,520 Speaker 1: give those tests. And and gent is very well known 156 00:10:24,600 --> 00:10:28,560 Speaker 1: for being an internet and you know manufacturing financial hub, 157 00:10:28,679 --> 00:10:31,680 Speaker 1: but not every other city can can do that in 158 00:10:31,800 --> 00:10:36,120 Speaker 1: large scale, right right, It's to afford that is quite 159 00:10:36,120 --> 00:10:39,840 Speaker 1: an expense, I imagine. So, uh, what's when you speak 160 00:10:39,880 --> 00:10:42,880 Speaker 1: to the management, you know, I'm assuming you speak to 161 00:10:43,000 --> 00:10:46,200 Speaker 1: sort of the CFO type level and that type of 162 00:10:46,360 --> 00:10:49,960 Speaker 1: person at these companies. What is their mood are they, 163 00:10:50,000 --> 00:10:53,360 Speaker 1: I'm assuming everyone's kind of tired of all the COVID 164 00:10:53,760 --> 00:10:58,120 Speaker 1: prevention measures. Are they sort of just you know, ready 165 00:10:58,120 --> 00:11:00,200 Speaker 1: to reopen. Is there an eagerness, you think to be 166 00:11:00,240 --> 00:11:04,000 Speaker 1: done with this and and sort of get past COVID 167 00:11:04,080 --> 00:11:07,440 Speaker 1: zero or or do they appreciate this, this effort to 168 00:11:07,480 --> 00:11:10,360 Speaker 1: contain the virus? Are they Are they happy to you know, 169 00:11:10,480 --> 00:11:15,160 Speaker 1: comply with all the the lockdown orders, uh in order 170 00:11:15,200 --> 00:11:18,240 Speaker 1: to to curtail the virus, or are they just like, 171 00:11:18,280 --> 00:11:21,599 Speaker 1: I'm done with this, let's open up. Yeah. First, I 172 00:11:21,960 --> 00:11:25,480 Speaker 1: think that everybody is excited to see people in person, 173 00:11:25,520 --> 00:11:30,360 Speaker 1: so they are excited to see me. And yes, I 174 00:11:30,679 --> 00:11:35,520 Speaker 1: think the companies are looking for some sort of certainties 175 00:11:35,600 --> 00:11:37,960 Speaker 1: in the in the you know, policy wise for sure, 176 00:11:38,440 --> 00:11:42,360 Speaker 1: so they would like to to you know, be able 177 00:11:42,440 --> 00:11:46,480 Speaker 1: to to get a timeline they they're hope hoping to 178 00:11:47,320 --> 00:11:52,040 Speaker 1: um have some clear idea about how the policies will 179 00:11:52,080 --> 00:11:54,760 Speaker 1: be going forward, so that they can know, for example, 180 00:11:54,800 --> 00:11:59,160 Speaker 1: whether they should uh, you know, diversify their capacity to 181 00:11:59,400 --> 00:12:03,280 Speaker 1: vietnams for example, and then they can you know, they 182 00:12:03,280 --> 00:12:05,880 Speaker 1: can plan that in for the next few months and 183 00:12:05,920 --> 00:12:09,280 Speaker 1: they can allocate that capital. So so yes, people are 184 00:12:09,280 --> 00:12:14,199 Speaker 1: definitely looking for some um, you know, clarity right right. 185 00:12:14,440 --> 00:12:17,840 Speaker 1: And I'm curious about the consumer companies UH that you 186 00:12:17,960 --> 00:12:21,079 Speaker 1: cover and invest in. UH. You know, obviously, my impression 187 00:12:21,160 --> 00:12:26,000 Speaker 1: is that UM, consumer spending UH must be very much 188 00:12:26,559 --> 00:12:31,000 Speaker 1: curtailed in some ways, obviously not in others. I'm sure 189 00:12:31,000 --> 00:12:33,400 Speaker 1: there's still people getting take out food and that sort 190 00:12:33,400 --> 00:12:38,320 Speaker 1: of thing. But UM, how has the consumer economy been 191 00:12:38,440 --> 00:12:41,320 Speaker 1: changed during COVID zero and or any any of the 192 00:12:41,320 --> 00:12:44,960 Speaker 1: companies you cover sort of struggling to to to deal 193 00:12:45,000 --> 00:12:49,000 Speaker 1: with that and and to adapt. Yes, we definitely see 194 00:12:49,080 --> 00:12:52,840 Speaker 1: some impact in the last couple of months. At the 195 00:12:52,960 --> 00:12:56,880 Speaker 1: end of March, Shah entered this this big lockdown, and 196 00:12:56,960 --> 00:13:01,200 Speaker 1: that's you know, a big economic have been a big 197 00:13:01,280 --> 00:13:05,760 Speaker 1: part of a lot of consumer companies revenues UM and 198 00:13:06,200 --> 00:13:12,280 Speaker 1: you know, April may were worse, but I think, you know, again, 199 00:13:12,400 --> 00:13:17,920 Speaker 1: a very um, you know, a very consistent trend that 200 00:13:17,960 --> 00:13:23,200 Speaker 1: I'm observing is that uh, you know, consumer spending where 201 00:13:23,760 --> 00:13:28,000 Speaker 1: where it's going higher is this you know, spending on 202 00:13:28,200 --> 00:13:33,520 Speaker 1: these local brands, for example, these local UH sportswear brands, 203 00:13:33,920 --> 00:13:38,480 Speaker 1: UM cosmetic brands, even in the milk's formula brands, which 204 00:13:39,040 --> 00:13:42,640 Speaker 1: is known to have had some quality concerns, and people 205 00:13:42,720 --> 00:13:49,840 Speaker 1: used to always perform multinational brands. And now consumer impression 206 00:13:50,000 --> 00:13:54,000 Speaker 1: has shifted a little bit around this, you know, these 207 00:13:54,040 --> 00:13:56,800 Speaker 1: these spaces, and I guess that has to do with 208 00:13:56,880 --> 00:14:03,400 Speaker 1: the rising banding power of the younger, uh consumers, And 209 00:14:03,480 --> 00:14:06,160 Speaker 1: these consumers have grown up in an age where the 210 00:14:06,280 --> 00:14:11,480 Speaker 1: quality of mating China products have have risen and they 211 00:14:11,520 --> 00:14:15,960 Speaker 1: didn't really have that baggage in their mind. Um, and 212 00:14:16,000 --> 00:14:20,240 Speaker 1: they're they're more willing to pay for these domestic brands 213 00:14:20,320 --> 00:14:24,120 Speaker 1: at a higher premium. They're willing to consider them as 214 00:14:24,240 --> 00:14:29,000 Speaker 1: higher quality, especially that infant formula sector. I mean, with 215 00:14:29,000 --> 00:14:30,880 Speaker 1: with all the issues we're having in this country, I 216 00:14:30,880 --> 00:14:40,520 Speaker 1: imagine the locals they're are are doing pretty well, you 217 00:14:40,560 --> 00:14:43,080 Speaker 1: know what saying. I think our listeners, especially in the 218 00:14:43,160 --> 00:14:45,960 Speaker 1: United States, the American listeners, are pretty familiar with the 219 00:14:46,000 --> 00:14:49,960 Speaker 1: big major Chinese companies, you know, the Ali Babas and 220 00:14:50,040 --> 00:14:52,480 Speaker 1: the and the ten cents. But you seem to really 221 00:14:52,520 --> 00:14:54,680 Speaker 1: be sort of going down and looking at the smaller 222 00:14:54,720 --> 00:14:58,560 Speaker 1: companies and and uh, perhaps someone's we we haven't heard of, 223 00:14:58,880 --> 00:15:01,280 Speaker 1: could you tell us a few of companies that you're 224 00:15:01,320 --> 00:15:03,760 Speaker 1: excited about that maybe we haven't heard about that that 225 00:15:03,800 --> 00:15:08,359 Speaker 1: you're interested in. Yeah so, um, I mentioned the Innovns 226 00:15:08,360 --> 00:15:12,240 Speaker 1: and Shaan Juan Gear uh Anta in the consumer space, 227 00:15:12,400 --> 00:15:18,560 Speaker 1: leaning in the consumer space prior UH Cosmetics. So these 228 00:15:18,560 --> 00:15:21,680 Speaker 1: are some of the companies which are just rising up 229 00:15:21,680 --> 00:15:26,560 Speaker 1: the new generation of made in China products I would describe. 230 00:15:27,440 --> 00:15:31,840 Speaker 1: And it's just younger companies, younger, smaller growth type of 231 00:15:32,120 --> 00:15:35,240 Speaker 1: stocks as we would think of them. Yeah. So, um, 232 00:15:35,360 --> 00:15:40,000 Speaker 1: there's this this shift uh if you will, to the 233 00:15:40,560 --> 00:15:44,920 Speaker 1: manufacturing type of companies over the years, and um, so 234 00:15:45,040 --> 00:15:49,000 Speaker 1: there's it was more spontaneous in the beginning, but there's 235 00:15:49,040 --> 00:15:54,120 Speaker 1: also a policy tail wind of into these high tech 236 00:15:54,760 --> 00:16:00,440 Speaker 1: small medium enterprises and they have been spending R and 237 00:16:00,560 --> 00:16:04,400 Speaker 1: d um you know over the years and have rising 238 00:16:04,480 --> 00:16:08,400 Speaker 1: on their their quality. So you know, these type of 239 00:16:08,440 --> 00:16:13,920 Speaker 1: companies similar to uh you know the sort of hidden 240 00:16:14,040 --> 00:16:19,080 Speaker 1: champion idea from the from from Germany. Um, these these 241 00:16:19,120 --> 00:16:24,280 Speaker 1: companies regarded as the little giants, um you know in 242 00:16:24,320 --> 00:16:28,520 Speaker 1: the in the in the Chinese policy language, is sort 243 00:16:28,560 --> 00:16:32,920 Speaker 1: of the new wave of manufacturers that we're seeing today. 244 00:16:33,000 --> 00:16:35,960 Speaker 1: And do you think you know we've seen so many 245 00:16:36,000 --> 00:16:40,120 Speaker 1: regulatory crackdowns in China, you know, the education companies and 246 00:16:40,160 --> 00:16:45,680 Speaker 1: the big tech companies. Do these sort of smaller manufacturing companies, 247 00:16:45,680 --> 00:16:49,240 Speaker 1: in your opinion, do you think they're perhaps safer from 248 00:16:49,280 --> 00:16:52,680 Speaker 1: that sort of risk that um you know that that 249 00:16:52,760 --> 00:16:56,600 Speaker 1: regulatory risk that we've seen towards the big tech companies. 250 00:16:56,640 --> 00:16:59,920 Speaker 1: Are they sort of immune from that, do you think? Um? 251 00:17:00,160 --> 00:17:04,040 Speaker 1: I think they're they're under some policy tail wind at 252 00:17:04,119 --> 00:17:08,840 Speaker 1: this point, and I think they are there there's a 253 00:17:09,080 --> 00:17:15,200 Speaker 1: there's that fact about you know, regulatory favorable treatment upon 254 00:17:15,240 --> 00:17:17,320 Speaker 1: these companies. But at the same time, I think the 255 00:17:17,440 --> 00:17:23,119 Speaker 1: rise has been uh, sort of spontaneous. They have um 256 00:17:23,160 --> 00:17:26,080 Speaker 1: you know that a lot of it has come up 257 00:17:27,080 --> 00:17:31,200 Speaker 1: from the investment into their their I d s. They're 258 00:17:31,640 --> 00:17:36,720 Speaker 1: they're they're able to close the quality gap with their 259 00:17:36,800 --> 00:17:40,440 Speaker 1: their larger global appears. They're able to offer better services 260 00:17:40,560 --> 00:17:43,919 Speaker 1: and at the same time they're also cheaper. So I 261 00:17:43,960 --> 00:17:48,399 Speaker 1: think that this this trend is a medium term trend 262 00:17:48,440 --> 00:17:51,560 Speaker 1: that we're looking at will continue for you know, several 263 00:17:51,640 --> 00:17:54,679 Speaker 1: years in future. And as you said, you've go on 264 00:17:54,720 --> 00:17:58,200 Speaker 1: to China every year for several years, made similar trips 265 00:17:58,200 --> 00:18:00,880 Speaker 1: to this, not not quite similar in that he didn't 266 00:18:00,880 --> 00:18:03,399 Speaker 1: have to stay in the same hotel room for two weeks. 267 00:18:04,840 --> 00:18:09,720 Speaker 1: But are there any big major shifts in the economy 268 00:18:09,760 --> 00:18:12,439 Speaker 1: that that you've noticed, you know, uh, and not just 269 00:18:12,560 --> 00:18:14,720 Speaker 1: from COVID, but you know, as you pointed out that 270 00:18:14,840 --> 00:18:20,520 Speaker 1: the trade were uh during the Trump administration. UM, could 271 00:18:20,520 --> 00:18:24,800 Speaker 1: you describe if you've seen any sort of major themes 272 00:18:24,840 --> 00:18:28,760 Speaker 1: in the economy change because of both of these events. Yeah, 273 00:18:28,840 --> 00:18:33,320 Speaker 1: I think so. So as you mentioned there, there's this 274 00:18:33,560 --> 00:18:38,879 Speaker 1: some sort of this shift priority shift from the internet 275 00:18:39,000 --> 00:18:44,000 Speaker 1: economy or the quote unquote intangible part of the economy 276 00:18:44,160 --> 00:18:49,439 Speaker 1: to the more tangible part the manufacturing space, the making 277 00:18:49,480 --> 00:18:54,120 Speaker 1: of the things. UM. And I think that that's where 278 00:18:54,119 --> 00:18:59,480 Speaker 1: where the you know, the focus off you know, the government, 279 00:18:59,600 --> 00:19:04,119 Speaker 1: but all so like investors from venture capital to you know, 280 00:19:04,240 --> 00:19:08,080 Speaker 1: secondary market are focusing right now. UM. And I think 281 00:19:08,119 --> 00:19:11,000 Speaker 1: that that is going to be a longer term trend. 282 00:19:11,520 --> 00:19:15,719 Speaker 1: As for the for the internet Internet part of the economy, 283 00:19:15,960 --> 00:19:20,000 Speaker 1: that way, we are already seeing a you know, organic 284 00:19:20,119 --> 00:19:24,240 Speaker 1: slow down of the of the growth UM as China 285 00:19:24,320 --> 00:19:29,360 Speaker 1: has reaching you know, high penetration rate of Internet users, 286 00:19:29,359 --> 00:19:33,439 Speaker 1: so so that high growth in the prior years is 287 00:19:33,480 --> 00:19:36,920 Speaker 1: probably not going to maintain in the next few years. 288 00:19:37,040 --> 00:19:40,840 Speaker 1: But at the same time, UM, there are industries like 289 00:19:40,960 --> 00:19:46,320 Speaker 1: electric vehicles, uh, you know, renewable energy solar for example, 290 00:19:46,680 --> 00:19:51,240 Speaker 1: where China is already a leader or is becoming a leader, 291 00:19:51,320 --> 00:19:56,080 Speaker 1: where there's you know, visible UM leaders in this space 292 00:19:56,160 --> 00:20:00,919 Speaker 1: that we were interested about. You sent over some about 293 00:20:00,920 --> 00:20:03,720 Speaker 1: your trip before the podcast, and one line that really 294 00:20:03,800 --> 00:20:07,320 Speaker 1: caught my eye said, relationships between people have become closer 295 00:20:07,440 --> 00:20:10,159 Speaker 1: post pandemic. Could you talk a little bit about that. 296 00:20:10,600 --> 00:20:12,679 Speaker 1: Is it's sort of like you said, people are just 297 00:20:12,720 --> 00:20:14,879 Speaker 1: happy to see each other once again. You know, you're 298 00:20:14,920 --> 00:20:18,240 Speaker 1: finally able to go out and sort of mingle again. 299 00:20:18,359 --> 00:20:21,080 Speaker 1: Is Is that? Is that basically what's going on, Just 300 00:20:21,600 --> 00:20:25,800 Speaker 1: you know, everyone's everyone's happy to be out and about again. Yeah. 301 00:20:25,840 --> 00:20:29,800 Speaker 1: I feel really glad that I'm able to do this trip, 302 00:20:30,080 --> 00:20:34,560 Speaker 1: especially considering that, you know, unfortunately a lot of the 303 00:20:35,000 --> 00:20:39,439 Speaker 1: local analysts, the local investors are trapped in Shanghai and 304 00:20:39,800 --> 00:20:44,320 Speaker 1: unfortunately they're they're not able to move around at this point. Well, 305 00:20:44,359 --> 00:20:48,320 Speaker 1: while you know, I'm able to you know, move from 306 00:20:48,359 --> 00:20:51,600 Speaker 1: city to city, and some companies are telling me that 307 00:20:51,640 --> 00:20:55,879 Speaker 1: they haven't had any investors uh visit this year. Some 308 00:20:56,359 --> 00:21:00,159 Speaker 1: told me that they simply haven't had any investor just 309 00:21:00,240 --> 00:21:04,639 Speaker 1: since the pandemic. So, uh, it's really high excitement to 310 00:21:04,880 --> 00:21:08,520 Speaker 1: be able to meet each other. So after my my 311 00:21:08,680 --> 00:21:12,120 Speaker 1: first of three cities that ran out of name cards, 312 00:21:12,280 --> 00:21:15,000 Speaker 1: first of people are still using name cards. And then 313 00:21:15,160 --> 00:21:19,720 Speaker 1: second that I'm able to complete all these company visits 314 00:21:19,760 --> 00:21:23,440 Speaker 1: and speaking to the you know, the CFOs and the 315 00:21:23,880 --> 00:21:28,439 Speaker 1: investor religions people and there you know, we're we're you know, 316 00:21:28,880 --> 00:21:32,520 Speaker 1: chat uh, not only about the companies, but you know, 317 00:21:33,480 --> 00:21:36,600 Speaker 1: things that we're seeing in the US outside of China 318 00:21:36,680 --> 00:21:39,480 Speaker 1: as well. Right, well, let's talk about that the traveling 319 00:21:39,520 --> 00:21:42,720 Speaker 1: you've done. So you you know, you came in and 320 00:21:42,760 --> 00:21:45,880 Speaker 1: you were immediately quarantined for fourteen days, right, and then 321 00:21:46,800 --> 00:21:49,639 Speaker 1: after that what happened after that, You've been able to 322 00:21:49,720 --> 00:21:55,840 Speaker 1: move around more freely. So after the first fourteen days, 323 00:21:56,520 --> 00:22:01,600 Speaker 1: there was another fourteen days that uh and the right 324 00:22:01,960 --> 00:22:07,000 Speaker 1: before the main first holiday, and after that, I was 325 00:22:07,080 --> 00:22:11,800 Speaker 1: able to move from city to city from my hometown 326 00:22:11,880 --> 00:22:18,200 Speaker 1: Cien to uh Hanjo and then Shenjin uh san Ya Guangjo, 327 00:22:18,400 --> 00:22:21,840 Speaker 1: which is where I'm at now. And it's it's really 328 00:22:21,960 --> 00:22:25,879 Speaker 1: tricky to move from city to city still because they 329 00:22:25,920 --> 00:22:31,760 Speaker 1: are all all these hidden rules and the hidden blacklists, 330 00:22:31,920 --> 00:22:34,719 Speaker 1: if you will, so you know, they don't put it 331 00:22:34,760 --> 00:22:37,560 Speaker 1: on paper, but you have to find out which cities 332 00:22:37,600 --> 00:22:43,400 Speaker 1: are banned UH to go to the next city. So um. 333 00:22:43,440 --> 00:22:48,960 Speaker 1: You know, for example, when I was moving from UH 334 00:22:49,080 --> 00:22:53,840 Speaker 1: moving to to Sanya, which is a tropical island um 335 00:22:53,880 --> 00:22:58,600 Speaker 1: in the southern part of China, they they banned honjo Um. 336 00:22:58,800 --> 00:23:03,000 Speaker 1: And then you know you have to be you have 337 00:23:03,160 --> 00:23:07,159 Speaker 1: to you know, be away long enough for them not 338 00:23:07,160 --> 00:23:12,160 Speaker 1: not to recognize that. So you have to It's like 339 00:23:12,280 --> 00:23:16,639 Speaker 1: playing a video game and and then you have to 340 00:23:16,680 --> 00:23:20,080 Speaker 1: find out all the tricks to be able to level up. 341 00:23:20,119 --> 00:23:23,640 Speaker 1: And I'm clearing all the levels at the moment. So 342 00:23:24,000 --> 00:23:26,199 Speaker 1: you have to research every step ahead, I guess, and 343 00:23:26,240 --> 00:23:28,600 Speaker 1: make sure you're able to go from that city to 344 00:23:28,680 --> 00:23:31,840 Speaker 1: that city. You're better than me. I would have landed 345 00:23:31,840 --> 00:23:34,200 Speaker 1: in that tropical island that you mentioned and probably stayed 346 00:23:34,240 --> 00:23:38,399 Speaker 1: there and explained to my my boss that arms. Now 347 00:23:38,440 --> 00:23:44,879 Speaker 1: I'm quarantined on this beach for a few weeks. So 348 00:23:44,920 --> 00:23:47,800 Speaker 1: where are you off too next after this? Yeah? Good questions. 349 00:23:48,000 --> 00:23:53,439 Speaker 1: So interestingly, a big news in in the last a 350 00:23:53,520 --> 00:23:58,760 Speaker 1: few days. It's definitely Shanhai opening up. So my original 351 00:23:58,880 --> 00:24:04,160 Speaker 1: destination for my flight in was Shanghai, and I feel 352 00:24:04,200 --> 00:24:07,359 Speaker 1: like that that's a that's a that's a circle that 353 00:24:07,440 --> 00:24:11,119 Speaker 1: I need to complete making Shanghai my final destination. We 354 00:24:11,240 --> 00:24:14,520 Speaker 1: have a lot of companies that we typically visit in Shanaha, 355 00:24:14,880 --> 00:24:20,760 Speaker 1: friends in Shaha, family in Shanghai. So yeah, I would 356 00:24:20,880 --> 00:24:24,040 Speaker 1: like to make Shanghai my my final destination if I can. 357 00:24:24,320 --> 00:24:29,920 Speaker 1: But still I have to look at the hitting rules. Yeah. 358 00:24:30,119 --> 00:24:32,480 Speaker 1: So it looks like Shanghai is starting to open up 359 00:24:32,480 --> 00:24:34,440 Speaker 1: and maybe in the next next week or so you'll 360 00:24:34,440 --> 00:24:37,119 Speaker 1: be able to actually get in and travel around and 361 00:24:37,119 --> 00:24:39,960 Speaker 1: see Shanghai. Is that is that the hope? Yeah, So 362 00:24:40,600 --> 00:24:44,320 Speaker 1: June one is the date of open up. Um, so 363 00:24:45,960 --> 00:24:48,920 Speaker 1: we're gonna have to see, probably for the first day 364 00:24:48,960 --> 00:24:53,320 Speaker 1: a few days, how the how the process is going 365 00:24:53,400 --> 00:24:56,280 Speaker 1: to be. I imagine it's going to be a step 366 00:24:56,320 --> 00:25:01,960 Speaker 1: by step process. Um might not open up in immediately. Um, 367 00:25:02,000 --> 00:25:05,000 Speaker 1: maybe some people will still not be able to move freely, 368 00:25:05,480 --> 00:25:11,800 Speaker 1: maybe transportation will still be restricted. Um, so we'll have 369 00:25:11,920 --> 00:25:18,040 Speaker 1: to see. But um yeah, I'm thinking that. Uh yeah, 370 00:25:18,080 --> 00:25:21,560 Speaker 1: I have things to do there once in one of 371 00:25:21,600 --> 00:25:23,720 Speaker 1: the big teams in the US over the last couple 372 00:25:23,720 --> 00:25:28,119 Speaker 1: of years for investors has been you know, when to 373 00:25:28,160 --> 00:25:30,760 Speaker 1: buy the opening up stocks, when to buy the stay 374 00:25:30,800 --> 00:25:33,959 Speaker 1: at home stocks. I'm curious how your strategy, you know, 375 00:25:34,040 --> 00:25:36,040 Speaker 1: are you more of a buy and hold long term 376 00:25:36,400 --> 00:25:38,600 Speaker 1: type of strategy or would you try to sort of 377 00:25:39,240 --> 00:25:43,120 Speaker 1: find the beneficiary areas of Shanghai opening up that we're 378 00:25:43,160 --> 00:25:46,000 Speaker 1: being in lockdown? How how are you viewing, you know, 379 00:25:46,119 --> 00:25:49,439 Speaker 1: the the lockdowns and the reopenings as sort of a 380 00:25:49,480 --> 00:25:51,840 Speaker 1: fund manager, is it is it worth trying to chase 381 00:25:51,880 --> 00:25:54,800 Speaker 1: the opening up and closing down stocks or do you 382 00:25:54,840 --> 00:25:58,119 Speaker 1: try to look past that and just look towards the future. Yeah? Sure, 383 00:25:58,200 --> 00:26:02,520 Speaker 1: I think people have tried to trade around that, but 384 00:26:02,800 --> 00:26:08,080 Speaker 1: since there were there there were some false hope in 385 00:26:08,119 --> 00:26:10,919 Speaker 1: the beginning of the year, so that that strategy hasn't 386 00:26:11,040 --> 00:26:15,560 Speaker 1: really been so successful. In China's case, we we are 387 00:26:15,640 --> 00:26:18,840 Speaker 1: trying to stick to the longer term. Um, you know, 388 00:26:19,160 --> 00:26:26,600 Speaker 1: uh themes if you will, like the you know, the manufacturing, 389 00:26:26,680 --> 00:26:31,480 Speaker 1: the localization trend, the consumer brands, those kind of things 390 00:26:31,520 --> 00:26:35,479 Speaker 1: that we pay attention to and try to you know, 391 00:26:36,240 --> 00:26:39,640 Speaker 1: stay with those companies. Well, it's been quite an adventure 392 00:26:39,680 --> 00:26:42,400 Speaker 1: for you and uh, for listeners out there who want 393 00:26:42,440 --> 00:26:45,240 Speaker 1: to read more, Wednesting has been writing a blog about 394 00:26:45,240 --> 00:26:49,800 Speaker 1: her trip into COVID zero, China at Parting Lovener's website. 395 00:26:49,840 --> 00:26:52,639 Speaker 1: I hope do you have some more posts coming up 396 00:26:52,680 --> 00:26:56,280 Speaker 1: for us soon? Yes? So yeah, we published our first 397 00:26:56,800 --> 00:26:59,880 Speaker 1: my first part of the journey, and uh, I hope 398 00:27:00,000 --> 00:27:03,840 Speaker 1: on second part of the journey is going to be 399 00:27:03,920 --> 00:27:07,639 Speaker 1: more exciting than the first one, where I will be 400 00:27:07,760 --> 00:27:12,000 Speaker 1: sharing with our readers, you know, about my visits and 401 00:27:12,040 --> 00:27:16,439 Speaker 1: trips around China, not just stuck in the hotel. I know, 402 00:27:16,600 --> 00:27:18,600 Speaker 1: I imagine you got sick of the food, and I 403 00:27:18,600 --> 00:27:20,760 Speaker 1: know you you did a lot of yoga to keep 404 00:27:20,800 --> 00:27:23,760 Speaker 1: yourself saying. So that's a good tip if for anyone 405 00:27:23,760 --> 00:27:45,960 Speaker 1: who YouTube YouTuber exercise sessions. Well, one thing, we have 406 00:27:46,040 --> 00:27:48,480 Speaker 1: a tradition on this show where at the end we 407 00:27:48,560 --> 00:27:53,080 Speaker 1: all discuss uh the craziest things we've seen in markets 408 00:27:53,400 --> 00:27:55,480 Speaker 1: in the past week. So for your case, I want 409 00:27:55,480 --> 00:27:59,440 Speaker 1: to hear the craziest story of your trip. What's the 410 00:27:59,480 --> 00:28:02,520 Speaker 1: sort of most interesting, most wild thing that's happened to 411 00:28:02,520 --> 00:28:05,840 Speaker 1: you during this trip. Well, Mike, I guess that has 412 00:28:05,920 --> 00:28:10,560 Speaker 1: to be my ambulance right home between my face one 413 00:28:10,600 --> 00:28:15,520 Speaker 1: and face too quarantine an ambulance right home, right home, 414 00:28:16,040 --> 00:28:18,080 Speaker 1: and you weren't sick. Though you weren't sick, right, it 415 00:28:18,160 --> 00:28:22,880 Speaker 1: was just uh so between phase one and phase two, 416 00:28:22,960 --> 00:28:27,320 Speaker 1: since I was moving from one city to another. After 417 00:28:27,359 --> 00:28:30,879 Speaker 1: I landed to the second city, which is my hometown, 418 00:28:31,720 --> 00:28:37,400 Speaker 1: registered well after you know, uh an hour long register 419 00:28:37,840 --> 00:28:44,040 Speaker 1: register process. Actually they assigned me a vehicle which turned 420 00:28:44,040 --> 00:28:48,400 Speaker 1: out to be an ambulance, and the driver just you know, 421 00:28:48,800 --> 00:28:53,760 Speaker 1: took my luggage, took me to the ambulance. No siren luckily, 422 00:28:54,520 --> 00:28:59,800 Speaker 1: but there was some uh laring, flashing lights. So what 423 00:29:00,200 --> 00:29:04,040 Speaker 1: would have been an hour drive turned out to be 424 00:29:04,160 --> 00:29:08,400 Speaker 1: twenty minutes. So I guess the regret that was that 425 00:29:09,760 --> 00:29:13,080 Speaker 1: I just feel like I don't deserve all this care 426 00:29:13,280 --> 00:29:16,320 Speaker 1: and all I don't deserve all this attention. You know 427 00:29:16,480 --> 00:29:21,160 Speaker 1: that that would have been resources could have been spent elsewhere, 428 00:29:21,560 --> 00:29:24,840 Speaker 1: and you know, I just wish that I don't have 429 00:29:24,920 --> 00:29:29,720 Speaker 1: to to do another ambulance right anytime. But it's face 430 00:29:29,840 --> 00:29:32,000 Speaker 1: some people right around town in a in a limo 431 00:29:32,240 --> 00:29:34,720 Speaker 1: to flex. You know, you got your ambulance. I gave 432 00:29:35,440 --> 00:29:37,360 Speaker 1: turn those sirens on it, like you said, you can 433 00:29:37,360 --> 00:29:39,800 Speaker 1: cut the trip in half. So it's it's it's a 434 00:29:39,800 --> 00:29:41,400 Speaker 1: good way to get around if you if you can 435 00:29:41,400 --> 00:29:43,719 Speaker 1: do it, and you know you don't need it for uh, 436 00:29:44,040 --> 00:29:46,560 Speaker 1: for medical reasons. That's a great story, though, I H, 437 00:29:47,280 --> 00:29:48,920 Speaker 1: I don't know, I don't know if I'll ever if 438 00:29:48,960 --> 00:29:51,760 Speaker 1: I could get an ambulance through Manhattan sometime, that would, uh, 439 00:29:52,280 --> 00:29:54,880 Speaker 1: that would probably cut my commute in half. But you're right, 440 00:29:54,920 --> 00:29:57,680 Speaker 1: we we got to save them for people that need it. Well, 441 00:29:57,680 --> 00:30:01,960 Speaker 1: that's that's definitely the craziest story I've heard this week. 442 00:30:02,000 --> 00:30:04,280 Speaker 1: But let me tell you about the craziest thing I 443 00:30:04,320 --> 00:30:08,640 Speaker 1: saw in markets this week. Went saying, and I gotta say, 444 00:30:08,680 --> 00:30:11,080 Speaker 1: I don't need an ambulance, but I got really bad 445 00:30:11,160 --> 00:30:14,640 Speaker 1: poison ivy over the weekend doing yard work, So I 446 00:30:14,680 --> 00:30:17,360 Speaker 1: think I do need this thing that I read about, 447 00:30:17,560 --> 00:30:20,560 Speaker 1: And it's what it is. It's I believe it's the 448 00:30:20,600 --> 00:30:26,320 Speaker 1: world's tallest ever bottle of whiskey, the largest ever bottle 449 00:30:26,320 --> 00:30:32,360 Speaker 1: of whiskey. It is six ft tall bottle of Scotch whiskey, uh, 450 00:30:32,640 --> 00:30:38,400 Speaker 1: distilled by McAllen in Scotland in in and the reason 451 00:30:38,480 --> 00:30:40,600 Speaker 1: it qualifies for the show is it went up for 452 00:30:40,640 --> 00:30:43,880 Speaker 1: sale and an auction so it's even giant bottles of 453 00:30:43,880 --> 00:30:47,200 Speaker 1: whiskey have a market that all their own. Uh. And 454 00:30:47,280 --> 00:30:50,880 Speaker 1: it was the auction house Lion and Turnbull. So when 455 00:30:50,920 --> 00:30:53,480 Speaker 1: saying as as a financial analyst, I have an important 456 00:30:53,520 --> 00:30:56,600 Speaker 1: question for you here. What do you think the world's 457 00:30:56,680 --> 00:30:59,800 Speaker 1: largest bottle of whiskey? A six ft tall bottle of 458 00:31:00,120 --> 00:31:04,560 Speaker 1: McCallan whiskey sold for an auction. No pressure, but your 459 00:31:04,600 --> 00:31:06,560 Speaker 1: clients are gonna want you to get this one right. 460 00:31:06,840 --> 00:31:09,200 Speaker 1: I'm going to just throw in my gas. I would 461 00:31:09,200 --> 00:31:15,720 Speaker 1: say two thousand dollars, two thousand dollars one point three 462 00:31:15,800 --> 00:31:19,400 Speaker 1: seven million. You can believe it. I wouldn't pay more 463 00:31:19,440 --> 00:31:21,320 Speaker 1: than two hundred thousand. I'd have to taste it first, 464 00:31:21,360 --> 00:31:23,760 Speaker 1: I think before I paid one point three million. No, 465 00:31:23,880 --> 00:31:28,720 Speaker 1: one glass is more expensive than I thought. Well, once 466 00:31:28,920 --> 00:31:31,960 Speaker 1: you enjoy that glass whiskey and uh, I hope you 467 00:31:32,160 --> 00:31:34,200 Speaker 1: enjoy the rest of your trip and have a safe 468 00:31:34,240 --> 00:31:37,520 Speaker 1: travels back to the United States. And we really appreciate 469 00:31:37,560 --> 00:31:39,560 Speaker 1: you joining the show and tell us about your trip. 470 00:31:40,000 --> 00:31:51,520 Speaker 1: Thank you, Mike, very nice talking to you. What goes up? 471 00:31:51,560 --> 00:31:53,440 Speaker 1: We'll be back next week and so then you can 472 00:31:53,440 --> 00:31:56,320 Speaker 1: find us on the Bloomberg terminal website and app, or 473 00:31:56,360 --> 00:31:59,160 Speaker 1: wherever you get your podcasts. We love it if you 474 00:31:59,160 --> 00:32:01,200 Speaker 1: took the time to eight and review the show on 475 00:32:01,280 --> 00:32:04,520 Speaker 1: Apple Podcasts so more listeners can find us. And you 476 00:32:04,520 --> 00:32:07,360 Speaker 1: can find us on Twitter. Follow me at reag Anonymous. 477 00:32:07,960 --> 00:32:11,680 Speaker 1: Bildanna Hirich is at Bildanna Hirach. You can also follow 478 00:32:11,680 --> 00:32:16,280 Speaker 1: Bloomberg Podcasts at podcasts. What Goes Up is produced by 479 00:32:16,320 --> 00:32:19,680 Speaker 1: Stacy Wang. The head of Bloomberg podcast is francesco Leavie. 480 00:32:19,840 --> 00:32:21,400 Speaker 1: Thanks for listening. To see you next time.