Some of these names have underperformed year to date recently. HENRY They've rebounded, but a big stimulus package that helps the Chinese economy will help some of China's tech sector as well. Yeah, indeed. What we see today is Chinese authorities really made a concerted push to help boost the economy as well as stock markets. These stimulus measures can be seen in three buckets. One is providing more liquidity to the economy in terms of cutting rates, lowering banks, reserve requirement ratios. Second is about helping the housing market, including lowering the mortgage rates for existing mortgages. And the third part, which is probably the most eye-catching part, is about providing direct liquidity support to the stock market. The central bank has pledged 800 billion renminbi of initial liquidity, and it has said that it's considering in terms of providing a stock stabilization fund. So all those measures putting together really help boost investor sentiment in

terms of Chinese Internet stocks that we've been seeing today. At. Why e-commerce? Why those names, JD and Alibaba doing so well? Henry? Yeah, because as we as we know that all those Chinese Internet companies, as well as those e-commerce companies, have been highly related to China's consumer spending. And we've been seeing them under quite heavy pressure recently given the China's economic slowdown. We've we've been hearing those companies executive talking about China's macro pressure being pdg, being JD being Alibaba, for example. Alibaba's e-commerce business just grew by a single digit in the past quarter, as well as the value champion P.D., for example. It was a stock market darling, but in August it's issued a profit warning and said that growth has been slowing and need to be investing more. Competition has become more intense. So we see the stocks really under pressure and those stimulus measures could be seen as the first step if the authorities is getting more serious in

terms of boosting the economy. HENRY We know these companies so well here in the United States, too. They have global pushes. Taming, for example, how much of their revenue still so focused on China or how global is it becoming? Yeah, it really depends on companies, right? So when we are talking about PD, for example, it has a big global push in terms of expanding to the US market, European markets for its team, more brands. However, for that international business, it's under pressure as well because the US government is having its new rules in terms of curbing those cross-border small package shipping as well. So the domestic market, the local market is really key for those companies, even though Alibaba has its, you know, international push as well. The local market is still key because the Teemo and Tal Ball business for Alibaba, for example, is still about two-thirds of its revenue generation. So the local really matters.

And what we've been seeing today in terms of the stimulus, stimulus measures really helps the investor sentiment. What's the next catalyst then, Henry? How much are people saying you continue to buy on the fiscal side? I would say so. We've been seeing lots of measures on the monetary side, for example, in terms of cutting rates, in terms of, you know, lowering down payment ratios or cutting rates for existing mortgages. But on the fiscal side is people really cares about because the problem with China's economy is not just about lack of liquidity in the economy, it's about lack of consumer demand. It's about weak consumption among Chinese consumers. We have two national holidays coming up and it's really about, you know, how to help Chinese consumers to buy more, to shop more. So the focus for investor next is really about on the fiscal side, whether the fiscal more policy and fiscal policies will overall come through as well.

China Stocks, Miners and Industrials Rise on Economic Push

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