China's attitude toward foreign businesses has improved, strategist says

Vincent Chan is a China strategist at Altia Capital. Vincent, good to have you in the show. Thank you very much for your time. How are you looking at the recent developments with the Politburo doing what it has to do to help prop up the economy? I think it’s probably also. Important to note that Chinese government’s attitude towards the Western countries particularly particularly foreign business, has improved running recently. This is probably it could create environment if the third party is going to open in July. I think the overtone, yeah national security and technology development, these are important things but I think there will be, there probably will be some indication of. Economic reform and foreign opening, I think at least at home will be will lean on on on this manner. So this is another development worth attention. I agree that the Chinese government probably right now are except for property sector and to a certain extent consumption. Happy about the status of the economy but where they will do more on the on the property sector or or whether they will well, I think from from if you talk about from the central party planning point will not so much detail policy, but how did he find the property sector Will it will it see it as a more slightly more positive thing to the economy rather than a rather negative tone. Yet I think these are the are the kind of things worth attention to. And so where is the where is your investment thesis lie broadly in China because I’m looking at how you’re saying you’re overweight consumer discretionary consumer staples, your overweight China communication services at reckon telecom and allied businesses. But the consumers not spending. OK, good point. But at the same time these are the stocks in which market expectation of their earnings growth and now look up. I ironically rather motors if you look at the earnings upgrade downgrade and earnings forecast for for 2O2 four these sectors are relatively modest compared to sectors like more hardware tech oriented or more commodity basis which earnings growth actually are much more bullish than we said. So I think in a way yes. Consumption, I think at this stage, I totally agree still in the recovery station, but at the same time, market expectation on these sectors are also relatively modest. I think this is this is 2 side of the of a coin and also within the consumption sector, some part of it relatively good, for example, anything related to travel, I think that that definitely are doing well. Children and electric vehicles, I mean generally speaking are two consumer items that people are actually buying right now.