### Investment Strategies Amid China's Economic Landscape

Investors focus on long-term growth potential rather than short-term geopolitical tensions affecting China.

### Navigating China's Economic Landscape: ETF Insights and Strategic Stock Selection
* 📊 When considering investments in China, the focus is on **careful stock selection** based on company exposure and competitive pressures rather than making **broad macroeconomic predictions**.
* 💡 The ETF managed is driven by "**secular tailwinds**," suggesting that selected stocks are expected to experience **sustained growth** regardless of the economic outlook.
* 🌍 Geopolitical tensions and changing U.S.-China relations are acknowledged as risk factors, leading to **adjustments in valuation discount rates** for exposed companies.
* 💻 Artificial intelligence remains a significant theme, with **strong tailwinds allowing continued investment** in companies, even those with exposure to China, as their overall growth is **not solely dependent on this market**.
* 📈 Scenario analyses are conducted to assess the impact of potential fluctuations in China, demonstrating that companies can **adapt and reallocate resources** in response to **supply-demand constraints**.
* 💰 Long-term valuation considerations are prioritized, focusing on companies' ability to **maintain pricing power and sustain profit pools over a decade**, rather than short-term price movements.
* 🔍 The current environment presents opportunities for alpha investors to identify and invest in companies with **competitive differentiation**, while avoiding those that appear **overvalued or frothy**.

China's Tech Sector Slows Down

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Investment Strategy Regarding China Exposure

Careful stock selection based on individual company exposure to China, not macroeconomic predictions.

Focus on competitive pressure and secular tailwinds, regardless of economic outlook.

Individual stock analysis to assess sustained growth potential.

Consideration of geopolitical risks and potential impact on valuations.

Increased discount rate for companies with significant China exposure and heightened risk.

Analysis of AI and other Sector Tailwinds

Strong tailwinds in AI, even with China exposure considerations.

Assessment of overall exposure, not solely relying on China's contribution.

Scenario analysis considering varying levels of China's impact on overall business.

Ability to reallocate resources to other areas mitigates China-specific risks.

Focus on overall geographic exposure rather than individual country reliance.

Comfort with high valuations based on strong demand and limited supply issues.

Emphasis on long-term profit sustainability, pricing power, and market leadership.

Ten-year horizon analysis to assess competitive differentiation and profit pool share.

Selective investment approach, avoiding overvalued or less promising companies.