Markets are more willing to see China as a 'glass half full story': Strategist

As would you see the glass as half full rather than half empty. Yeah, I mean interesting you you put it this way, I think in January the glass was half full, but market sentiment was very, very negative on China because it was AI was too strong, Japan was too strong, China was just too hard. So found flow was very unfavorable on China. Everyone see China as glass half empty story. So we see much more severe derating than what the fundamental was probably deserved where whereas in the past 2-3 weeks we see fund flow coming back to China. Not necessarily because China fundamentally has so much dramatic change in the past one month, but also more probably because of what’s happening in rest of the world in terms of the Fed rate decision, in terms of what’s happening with the Japanese yen, what’s happening with the AI cycle. So currently it seems the market is more willing to see China as the glass half full story. But I would still say fundamental turn around will be a a a quite long term story. That property market for example home buyers are not going to suddenly believe say hey you know we’re we’re going to go back and put that 5,000,010 million RMB to buy the next property. The turn around will take time. Yeah, let’s pick up on that that that theme Winnie, because there seems to be a lot of attention on the wording and the language coming from the authorities right now with regards to how they’re going to deal with the inventory right now, the unfinished projects. There seems to be sort of a wait and see approach as to you know whether Beijing will will come up with some sort of central funding for now. But in the meantime, we’ve had a lot of excitement around the likes of Hangzhou coming out and removing those purchasing restrictions. So when you say it will take some time, when do you think could be the turning point and what do you think needs to be done in terms of a catalyst for some sort of more meaningful upside for investors to to to get into this? Yeah. So on the property side, they are pro there. There are demand and supply side issues, right. On the demand side, I think what got the policies has been focusing on more recently is abolishing the purchase restriction policies so that market demand can be truly fully reflected. Currently, I think in China, there are only 6 cities or regions that still have some level of purchase restriction, but besides those, it’s mostly abolish. So market true demand will be better reflected whether it’s driving price or volume up or down, we’ll see you soon. And on the other side, on the supply side, you know I think the, the very important change it seems to be government policy now is more focusing on the stocking. So potentially using the government funding to acquire and finish a project to ensure the project completion and to contain the overall supply of you know new stocks coming to the market which will also help. But to your point, where is the funding, right? Is Central going to provide the funding? If so, how is that going to be allocated across cities? Because property is a very localized market, right? The challenges Shenzhen face is very different from the market condition in Changsha for example. So is it fair to allocate to say 100,000,100 billion to each and every city? If not, how is the central government funding be allocated? Or are they going to use some of financial institutions money or going back to rely on local government funding vehicle or local SOE. So I think until we see better clarity, you know, the real execution of the destocking process will probably still be a relatively long process.