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Speaker 1: Let's take a closer look at this market action with

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Speaker 1: our guest Fun Chu Kuan h c I O at

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Speaker 1: HSBC Global Private Banking and Wealth, joining us from our

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Speaker 1: studios in Hong Kong. MS, Fun, thank you so much

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Speaker 1: for being with us. So let's begin with the delay

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Speaker 1: of the publication on third quarter GDP. Are we to

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Speaker 1: read into this that the number was not going to

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Speaker 1: look so rosy for the for the mainline economy? I

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Speaker 1: think the delay of the Chinese GDP data UM should

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Speaker 1: be more related to them ongoing twenty National Party Congress UM,

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Speaker 1: and I think the market have actually expected UM quite

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Speaker 1: a tough que free economic performance as we continue to

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Speaker 1: see the COVID disruption to get with the property market slum.

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Speaker 1: So that would be reflected in the Q free GDP

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Speaker 1: numbers and the September economic indicators we've seen China junk

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Speaker 1: doll le bond's dropped to a record low because the

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Speaker 1: property crisis is really just again a concern about the

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Speaker 1: successive borrowing. When do we see some really strong policy

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Speaker 1: steps for the property sector. I think more a comprehensive

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Speaker 1: and decisive policy actions to reverse the downturn of the

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Speaker 1: property sector will likely come out UM after the Party Congress,

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Speaker 1: but I think more visible policy actions would need to

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Speaker 1: be UM formulated and finalized when we have the Central

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Speaker 1: Economic Work Conference in December, because that would be an

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Speaker 1: annual policy setting working conference to formulate UM a specific

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Speaker 1: policy action. But we have already seen the local government

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Speaker 1: authorities of rolling out more UH property markets abilizing measures,

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Speaker 1: but I think this is not yet sufficient to reverse

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Speaker 1: the dwnturn as reflected by them UH substantial year on

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Speaker 1: year decline in property sells UM so a more comprehensive

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Speaker 1: policy support package is still needed to contain the spill

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Speaker 1: over effect from the property market weakness. So we think

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Speaker 1: UM the Central Economic Work Conference would need to UM

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Speaker 1: formulate a set of defective policy actions are not just

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Speaker 1: focusing on the completion of unfinished proputy project but also

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Speaker 1: address the liquidity crunch of the developers. UM So, we

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Speaker 1: we do expect the government to UM to roll out

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Speaker 1: UM more substantial stimulus action because this would how key

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Speaker 1: for the growth recovery outlook in twenty twenty three. I

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Speaker 1: just wanted to get your your out of you as

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Speaker 1: well on where you're seeing the right place to allocate

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Speaker 1: at the moment because the people that we surveyed expect

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Speaker 1: that the U s economy will emerge a winner from

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Speaker 1: the downturn. And you're bullish on the US dollar and

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Speaker 1: overweight US equity, So assuming you feel the same here, Yeah,

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Speaker 1: we currently have a mild underweight allocation to global equities,

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Speaker 1: and with seeing our equity universe, we have the biggest

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Speaker 1: tactical overweights on US equities because we believe the US

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Speaker 1: economy will remain relatively resilient to recession risks as compared

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Speaker 1: with other developed economy, especially the the US, SONG and

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Speaker 1: the UK that we expect would be heading into recession

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Speaker 1: in the fourth quarter UH and looking at the ongoing

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Speaker 1: reporting season, we continue to see underlying fundamental strength in

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Speaker 1: US corporate earnings performance are as indicated by the strong

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Speaker 1: bank so out release in recent days. So these also

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Speaker 1: reflect um. The US equity market will likely be back

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Speaker 1: to position to whether the infration and policy tightening risks

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Speaker 1: givens the strong support by a healthy labor market, so

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Speaker 1: consumer spending out also be ming um resilient. When it

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Speaker 1: comes to the outlook for the Chinese economy, let's go

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Speaker 1: back to the other day when President She opened the

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Speaker 1: party Congress with that speech, and one of the things

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Speaker 1: that one of the words that I heard repeated was creativity,

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Speaker 1: and I linked that to the idea of innovation and

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Speaker 1: becoming a little bit more self sufficient, especially where high

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Speaker 1: technology is concerned. And we know now in terms of

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Speaker 1: US China attention, one of the hot button issues is

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Speaker 1: advanced semiconductor technology. So if the US holds this line

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Speaker 1: firm and China does not have access to that leading

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Speaker 1: edge technology, to what extent is the economic picture going

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Speaker 1: to change? How is high tech in China going to

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Speaker 1: be held back? Yeah. In the opening speech UM that

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Speaker 1: President She delivered at the Party Congress, he actually attached

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Speaker 1: quates a strong strategic focus on technological innovation UM and

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Speaker 1: and this reflect continuous strong government policy support will be

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Speaker 1: given to the advanced technology sector UH givens them UM

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Speaker 1: the geo political tensions that Beijing currently face UH in

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Speaker 1: regard to the latest US cheap export band UH and

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Speaker 1: this will remain a key head winds UH. And this

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Speaker 1: would also accelerate UM THEM localization program in terms of

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Speaker 1: development development of them UH core technology and and key

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Speaker 1: capability as on homegrown UH technology capability and and we

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Speaker 1: also expect China would try to seek UH collaboration with

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Speaker 1: UM potential developed market partner in Europe, Japan and Asia. UM.

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Speaker 1: So this is going to be a key strategic focus

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Speaker 1: of Beijing. UH to enhance is tech capability in order

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Speaker 1: to fulfill UH is UM objective goal of technology upgrading,

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Speaker 1: especially in advanced manufacturing. What did you read into the

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Speaker 1: p bs S polls on the MLF yesterday. Does that

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Speaker 1: mean we don't really see any moves again until next year?

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Speaker 1: I think with the policy divergence between UM, the US

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Speaker 1: and China giffens UM, the federal reserve is still staying

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Speaker 1: on a hockish policy tightening path. So this would actually

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Speaker 1: constrain the room for the PBOC to cut interest rate,

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Speaker 1: and we believe UM the p BBC will likely UM.

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Speaker 1: I thought our the monetary yeasing means are including liquidity

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Speaker 1: support and potential reserve requirement racial cut rather than direct

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Speaker 1: policy rate cut. Alright, always a pleasure, Thank you IF

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Speaker 1: and Chuckwan is ah C I O at hs b

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Speaker 1: C Global Private Banking and Wealth in our Hong Kong studio.

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Speaker 1: This is Bloomberg