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Speaker 1: Let's get to our guest. Alex Swong is with us.

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Speaker 1: He as director of Alex k y Wong Asset Management.

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Speaker 1: He's on the line from Hong Kong. Alex, thanks for

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Speaker 1: being with us. So we had this week reading on

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Speaker 1: the US economic growth. No surprise that the economy shrank

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Speaker 1: in the States, and now the markets really have dialed

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Speaker 1: back their expectations for FED rate hikes. We saw yields

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Speaker 1: move lower across the curve the dollar weekend. Let's begin

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Speaker 1: with a dollar. Do you expect the dollar to kind

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Speaker 1: of trade lower against the major's going forward here at

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Speaker 1: least in the near term. This is in the near term,

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Speaker 1: but in the longer one, I don't think too much

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Speaker 1: low because if you look at the you defense will

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Speaker 1: acquit that will still be favorable for the dollar especially

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Speaker 1: I think, yeah, so I think that all of properly

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Speaker 1: may still wet, but the womb for witness action it

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Speaker 1: may not be too much. We're looking as well, Alex,

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Speaker 1: about these inflationary pressures, particularly when j Pal indicated they're

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Speaker 1: going to be data dependent and now so not as

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Speaker 1: much forward guidance as we will potentially hoping for. When

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Speaker 1: you look ahead to the key read we're getting out

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Speaker 1: from the likes of the US. The fact that we

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Speaker 1: just heard Ellen Masks say, look, he thinks inflationary pressures

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Speaker 1: are coming down. Do you think that we may have

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Speaker 1: seen peak inflation? Yeah, because the commodity podcast sector suggest

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Speaker 1: those I think one of the accomplishment by the fact

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Speaker 1: is that that they the the wiki actually has scale

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Speaker 1: of speculators in the commodity markets, so we are seeing

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Speaker 1: a huge pullback in commodo prices. I think that helps.

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Speaker 1: But the other parts of invlasion actually um related to

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Speaker 1: uh the, the the the HIO, political situation in Europe,

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Speaker 1: and probably also some logistics usuals. I think that those

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Speaker 1: things may not be that easily be um solved. So

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Speaker 1: we are seeing signs of picking in invasion. But I

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Speaker 1: don't think we would see uh the the easing to

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Speaker 1: come too soon because other factors actually still remains. So

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Speaker 1: we were talking earlier in the program about our leadership

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Speaker 1: in China giving a downbeat assessment of economic growth, but

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Speaker 1: there is not an indication yet that new stimulus is

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Speaker 1: in the pipeline. Is this something that is necessary for

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Speaker 1: the mainland economy? Do you think, well, yes, because right now, UM,

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Speaker 1: the housing market prices actually is a big problem for

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Speaker 1: China because of that impact a lot of sectors, and

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Speaker 1: we are not seeing UM enough similar so to get

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Speaker 1: the China of this trouble because if you if you

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Speaker 1: have her, he was low down in that market, that

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Speaker 1: would affect the banking system and probably affect consumer sentiment

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Speaker 1: as well, and also other commoding markets and manufacturers. So

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Speaker 1: I think that there is a very huge problem in

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Speaker 1: China right now, and we need to see UH stronger

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Speaker 1: term similars to come up from there. Otherwise I think

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Speaker 1: people probably would still be very skeptical about the economic

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Speaker 1: prospect in China. Get more of your views on investing

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Speaker 1: in Hong Kong and China, specifically the text space. When

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Speaker 1: we've had such a big week about Ali Baba groups

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Speaker 1: primarily sting, they've basically erased all those gains though, and

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Speaker 1: then Jack Mars plan to give up control of ant

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Speaker 1: group too, so we're starting to see signs that the

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Speaker 1: crackdown on tech is potentially over. How do you view

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Speaker 1: that space right now? Oh? I think now still UM

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Speaker 1: would be affected by the concern onckdown because there's not

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Speaker 1: much in movement in that space, and and also tens

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Speaker 1: And and Alibaba actually are also kept by the concern

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Speaker 1: on post disposal by their major shoulders because the next

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Speaker 1: person and prob the soft bank our disposal uh pens

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Speaker 1: and and Ali Babba respectively, So that is an affective

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Speaker 1: Shepherd's performance. And of course the primary minister would help

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Speaker 1: because the people expect those Chinese money would come through

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Speaker 1: the Connect program, so that would help eventually, but in

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Speaker 1: the meantime I think those one they are not coming yet,

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Speaker 1: so the Shaphis will still be um a little bit

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Speaker 1: under pressure because of the concernal disposal by software and

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Speaker 1: also I think the latest development of UH check mark

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Speaker 1: giving up the control in andtally sentiment, so um they

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Speaker 1: would they would not be too bad because they have

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Speaker 1: all they underperformed the global ps of sometime evaluation. Actually

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Speaker 1: it's not too high, but the upside in the in

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Speaker 1: the neatum at LISTA is not too attractive. So we

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Speaker 1: had a call on Thursday between Presidents Biden and she

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Speaker 1: looks like there's a little bit of positivity. The latest

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Speaker 1: indication that there is going to be some face to

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Speaker 1: face conversation in the near term. There is the risk

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Speaker 1: though that the US listed Chinese firms will not comply

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Speaker 1: with the request from the Securities and Exchange Commission for

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Speaker 1: a greater transparency on accounting and maybe adopting some of

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Speaker 1: the standards that the US would like to see in place.

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Speaker 1: So if you had to bet on the potential delisting

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Speaker 1: of Chinese firms in the US, would would you be

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Speaker 1: saying that that's an inevitability? I think that probably would

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Speaker 1: be a problem later on this This negotiations that would

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Speaker 1: last sometime because they're a lot of time between the

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Speaker 1: actual happening from that and now. So I think there's

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Speaker 1: them a lot of time that to negotiate about the sport,

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Speaker 1: the culture issues, so and also this ship is actually

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Speaker 1: all very reflected that so in the meantime, I don't

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Speaker 1: think the investor would have too much about this concern

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Speaker 1: because this is already applies in UH and I think

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Speaker 1: probably the overall um outlook economic OUTLOK in China, it's

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Speaker 1: it's a major concern right now. M Well, let's get

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Speaker 1: to that, because it does kind of seem like that

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Speaker 1: five and a half percent growth target has been slowly

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Speaker 1: quietly abandoned. Then you had this week the news that

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Speaker 1: will hand the start of the of the pandemic is

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Speaker 1: going to be locked down as well. I mean, it

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Speaker 1: just kind of seems that this ongoing COVID zero policy

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Speaker 1: is going to continue to wreak havoc on the economy.

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Speaker 1: Oh yes, uh, the COVIDI policy actually would be a

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Speaker 1: big hit and then uh uh, and I think the

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Speaker 1: manufacturing sectors also would would get it eventually, because one

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Speaker 1: year ago, probably China is the safest pace of your

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Speaker 1: supply chain, but right now probably is the most vulnerable

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Speaker 1: placing your supply chain. So that is the impact of

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Speaker 1: the COVID policy, and that would wolf Man. They would

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Speaker 1: give something incentive for people to move their supplachain out

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Speaker 1: of China, So there is long term impact of this policy.

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Speaker 1: And also, as I've said, the housing markets quite as

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Speaker 1: sexually is another fact that which are affect domestic consumption

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Speaker 1: and demand. So right now the out of is quite

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Speaker 1: a boom in China. So you seem to be suggesting

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Speaker 1: that the market is well aware of the risk here

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Speaker 1: and it's fully discounted those risks. And I'm curious, in

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Speaker 1: about thirty seconds, is there an area of the mainland

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Speaker 1: market that you like right now? Quickly give me a

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Speaker 1: couple of themes that you were attracted to the most,

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Speaker 1: apparently is the ivy and div um. I think that

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Speaker 1: is the mosa apparently right now, all right, Alex, thank

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Speaker 1: you so much. Alex Wong as director at Alex k

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Speaker 1: y Wong Asset Management, joining us from Hong Kong here

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Speaker 1: on Bloomberg Daybreak. Ase you're