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Speaker 1: Let's get to Andrew Ferre's our guest. Andrew is the

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Speaker 1: CEO of Egnosis Advisory on the line from Hong Kong. Andrew,

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Speaker 1: I'll be very blunt. Is China, based on what you

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Speaker 1: heard coming out of the Party Congress uninvestable? UH? An

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Speaker 1: investable on certain ways. It is very investable for domestic

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Speaker 1: UH consumption in both in terms of consumer durables and

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Speaker 1: consumer your durables. It might be for the time being

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Speaker 1: an investable whilst the thing really clears out, and this

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Speaker 1: might take quite a while for exactly what the policies

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Speaker 1: mean as far as tach is concerned and as far

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Speaker 1: as pure foreign investment is concerned. But it's definitely not

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Speaker 1: an investable as far as domestic is concerned. And I

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Speaker 1: do believe that China is going to develop one of

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Speaker 1: the biggest domestic tourists markets in the world, but to

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Speaker 1: match the United States. Why Because I do believe that

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Speaker 1: under the existing COVID policies, foreign travel is going to

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Speaker 1: be almost impossible for quite a while. Yet therefore the

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Speaker 1: Chinese instead of traveling overseas, they will travel domestically. So

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Speaker 1: there's a lot of places where there are investment opportunities,

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Speaker 1: despite the fact that the reaction was correct as far

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Speaker 1: as the foreign investor is concerned, So in the rest

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Speaker 1: of Asia for foreign investors, where would you recommend Looking Well, first,

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Speaker 1: I want to differentiate very strongly between some Asian markets,

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Speaker 1: for example, Jakarta, Singapore, and India the year to date

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Speaker 1: down by less than ten percent. It's an exceptionally good

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Speaker 1: performance compared to two SMP which is which is twenty

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Speaker 1: and Taiwan which is minus fortic All of them are

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Speaker 1: talking about minuses. Okay, so there are markets that they're

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Speaker 1: interesting to look at. The second point is is given

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Speaker 1: that this is the general it's a generalized center of

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Speaker 1: there's no point in saying, well, you know, we're going

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Speaker 1: to avoid text and we're going to consider consider something else.

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Speaker 1: I'm taking one particular sector, and that is defense sector.

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Speaker 1: And surprisingly enough, Asia has got an excellent defense sector

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Speaker 1: both in Japan, in South Korea and in India that

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Speaker 1: are investable and they are worth looking at. And the

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Speaker 1: same thing, of course, as far as the United States

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Speaker 1: and Europe is concerned, because defense spending is going up

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Speaker 1: as if there is no tomorrow. This has been completely

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Speaker 1: ignored by the markets of up and it would stay up,

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Speaker 1: whilst China, at least apparently for some observers, it's becoming

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Speaker 1: tough as far as the region is concerned. In the

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Speaker 1: United States, well, let me pick up on that, Andrew.

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Speaker 1: I mean as it relates to the ban on high

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Speaker 1: technology in the semiconductor industry. That's US ban on technology

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Speaker 1: going into the Chinese market. Does China struggle to make

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Speaker 1: up by looking to other folks in the Asia Pacific

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Speaker 1: that have maybe a technology that they can benefit from. Well,

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Speaker 1: the biggest one is in South Korea, and South Korea

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Speaker 1: has already complying very very closely with what United States want.

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Speaker 1: The second one is Taiwan. That is almost a kind

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Speaker 1: of a joke here that Taiwanese will be helping the Chinese,

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Speaker 1: although there is an enormous amount of Taiwanese investment in

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Speaker 1: China on microchips, but not necessarily on the high quality,

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Speaker 1: high density microchips. And of course the other major microchips

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Speaker 1: producers is Japan. So China is going to find it

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Speaker 1: very difficult to to get a sympathetic here in at

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Speaker 1: least locally in Asia. Very quickly in thirty seconds or so,

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Speaker 1: does that significantly hold back advancement of very sophisticated technology.

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Speaker 1: For China, there are two parts here. One is to

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Speaker 1: have the equipment to make them okay in others who

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Speaker 1: have the machines to make the high quality chips. And

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Speaker 1: the other one is to somehow solve them. And China

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Speaker 1: can always of course trying to invest in order making

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Speaker 1: the machines that make in the microchips. Again, that's the

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Speaker 1: way today quite a while. Andrew, always a pleasure, Thank

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Speaker 1: you so much for being with us. Andrew Faris is

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Speaker 1: the CEO of e Cognosis Advisory, joining us here on

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Speaker 1: Daybreak Asia