cc may contain inaccuracies in terms of china stocks its been a pretty wretched year so far in 2023 weve got the hang seng index down 20 percent from a january peak a lot of gloom generally around chinese equities but through all that youre remaining overweight so tell us something good where are the bright spots of course firstly i think the economy is on track to a recovery and the uncertainties however would mainly be the magnitude and the speed of recovery which can be tracked by external pressures for example the geopolitical tension between the united states and china which is are ongoing at the moment and of course the cny weakness against the us dollar is not helping out on the valuation of the stocks or equities thats true to hong kong dollar so we are quite confident about the recovery in terms of the physical economy and therefore the earnings revisions of worse are can eventually be quite sustainable going forward into 2023 the rest off ten point three and therefore valuation wise the market as a whole is looking very undemanding at the current level so does that recovery though happen without stimulus and i mean aggressive stimulus because liquidity doesnt really seem that your problem here do you see anything more might be needed to juice the economy in china definitely i think right now when the economy is not recovering quicker than whats expected i think theres a good chance that the government can step in again and impose some more stimulus in order to drive the economic recovery speed going forward and therefore that can be a catalyst going forward in the near future consumption though has spotter and i mean there were high hopes that after the covid zero reopening the chinese consumer would come back in force its been a little bit of a mixed picture how confident are you on the discretionary sector in china i think in terms of recovery consumption is also on track in the way that weve seen tour some doing really well weve also seen some restaurant chains are doing really well and therefore i think again is on track to a recovery however in a full scale kind of a consumption recovery it may need a little bit more time but we are quite confident that eventually thats going to come through probably with a little more help from the government in terms of stimulus is that where the upside for chinese markets lie on the expectation that the government will come in whether on the fiscal side of things or the monetary side of things and why hasnt that already happened i think firstly the government would want the recovery to be steadier than a speedier and therefore unless there is like external pressure thats pressuring the physical economic recovery i think the governments quite reluctant to step in in order to drive economic growth but now that we are seeing some pressure thats are coming in or imposing on the physical recovery i think that can invite some more stimulus from the government in order to drive economic growth