when do you think the market bottoms onshore and offshore that is a very good question that is the milliondollar question we are not yet in a very urgent rush to turn bullish at the overall china market including onshore and offshore but we do prefer an ashare market versus the offshore market versus this stage there still  risk factors are still developing number one the covid omicron situation that puts a significant drag morgan stanley has cut their expectations because of that as you mentioned earlier the fed policy stance and the global volatility as a result of that has been very negative for the emerging market in general and china is part of that particularly in the offshore space including the hong kong market and the growth  is sensitive to the rising yield environment we need to be more patient here david just to clarify you are overweight it can you clarify that for us too laura yes i think clear fixation is worth mentioning here it is not internet it is more that tech hardware and semiconductor and software and internet is more between media and ecommerce space that  s right david yvonne yvonne and apart from the it sector there has been a rotation into the old economies industrials materials and even financials i am wondering how strong you think this rotation is and does it actually have legs given that it seems like it they will be benefiting the most from spending laura that  s right we added exposure to financial since december last year and we want to hold onto that exposure financial has been the best performing sector year in the hong kong market and the financials tend to benefit from the rising yield environment we also like materials and industrials because we believe they are going to benefit from the infrastructure pick up which is a very important part of this easing cycle that is forming onshore there  s definitely further room to go yvonne why do you think we have not quite seen that pboc put yet we have seen a substantial shift on easing by z  bias in the pboc laura i think we need to respect the fact that the china equity market is caught between is very tricky timing difference in terms of the early stage of gradually forming china easing cycle and the very rapidly forming tightening cycle on the us side i think there is a timing mismatch here and we need to give it more time the s  p is down close to 8 yeartodate the 10year bond yield in the us is up by 40 points as i said earlier that is negative for the emerging overall whereas i think later this year as investors get more convinced about the easing cycle which we think is actually forming and we see more signs coming from that angle i think there will be a better entry point and an inflection point for the china equity markets just not right now ahead of the chinese new year when there is a lot of uncertainty being development and there is an extended suspension period for the market to stay closed david what do you think the first quarter earnings are going to look like on msci china and the asian market do you think we will get more downgrades are upgrades in the weeks ahead laura in general it will be a relatively disappointing quarter because the omicron was not very much expected by either the policymakers or the investors even as late as around november early december last year so there is a lot more earnings downgrade it needs to be done as we go through the annual result season which will come up in the next month or so for whole year consensus expecting 15 earnings growth for msci china we do not think that  s possible we have 12 but if omicron continues to develop that 12 can come down to high single digits for this year more room to go yvonne you have a with a note about the northbound and southbound flows the highest and secondhighest inflows in 2021 despite the regulatory risk and the regulatory tightening we have seen much of last year how significant do you think that is and what does that suggest for this year when it it comes have you reached peak regulatory risk laura that just shows there is still a decent amount of investor interest in both the onshore market from foreign investors and from onshore investors in the hong kong markets so i think that is definitely a positive sign and we believe that the interest from  investors in ashares is here to stay for the southbound flow will pick up if correlated with the easing cycle that is being formed that i mentioned earlier and historically we have seen high correlation between the onshore liquidity this will definitely service supporting  for both sides but again we need to give it more time for us to go through this volatility period that triggered by outside uncertainty from the us side omicron on the micro particularly the consumption front