I Want to give you an update on an important story that we started covering yesterday of what in the world is going down in China The CSI 1,000 had gone down 9 days in a row and over the past couple months it's lost about7 trillion dollar of value for the overall Chinese Stock market not good Regulators Tried to step in and like Hey we're going to try to like help out a little bit in an effort to stop this hemorrhaging. we actually have the president of China president Xi Jinping stepping in and of this morning this CSI 1000. Really, the whole Chinese market is actually having a nice bounce back to the the point that it's almost its singular best stock gain Day Ever X To discuss China stocks with Regulators as rescue bets build there, there signs of of a rescue and when it comes to stocks, particularly when it comes to Asare Market Should we expect the national team to step in more in a meaningful way, we are continuously expecting more stimulus measures of of such kinds. Uh, but I think think the market is expecting more concrete actions and cuz overall sentiment remains very cautious.

uh and um, right now investor positioning and expectation remain quite low. So um I guess right now um, market and investors are still grappling with the weak economic recovery and also the property downturn. so more concrete and consist coming in less coordinated effort will definitely help and it's good to you know, As as David mentioned right, they're They're in some ways doing a lot of measures except for shutting down this Market In some ways. given some of these curbs though, does it actually deter people from coming back into this? Market because it makes it harder for them to exit out of these positions too right now I Guess Market is just looking for clearer signals.

First of all about economic recovery which right now is a bit murky given how we in a blackout period. Uh, for January we'll only get um, the um, uh, the uh, the inflation date data and also the credit data. and we will not get the market data with regards to like retail sales Etc or more sense of like how the Uh sentiment is heading towards until mid-march and so I guess the next Catalyst will definitely be on the NPC meeting and see whether there will be more measures coming out. but I guess Market is waiting for uh, more concrete measures or coordinated policy responses.

Um, and so um, targeting key sectors that proper and also on the consumer sectors. I mean their ghost towns have been Marcel David here spoken about for years. To sum things up how: I don't know if this is a dumb question, how low is too low and until we figure out what metric to use to determine that, do we just stay clear of most Chinese exposure at this point in time? Or you know or does this market present value now? Um, we believe right now given how invested position is quite low and expectations quite quite low and also the undemanding valuations that should be continuously upside of prices hopefully in the next one or one to two years and um, as we've always mentioned, given the current low undemanding uh price to B ratio, we see that in the next 24 months or so uh, we usually yield quite decent postive double digit return. So this is what we're expecting.

And right now we see actually um, the earnings momentum have been improving. We see earnings upgrades in specific sectors like internet, consumer staples and energy Etc and also we Contin see for example, China Banks might be considered as a shelter sectors right now. Uh, as we see uh, stable dividend payout as well as actually quite decent performance compared to Uh MCI China we've seen year to- date plus 10% uh, return so far and obviously we continue to monitor like Catalac stimulus measures, property stabilization, and also whether there will be more concrete measures going forward. Um, at the NPC That's kind of what happened overnight, but just to give you a little bit more of an idea right here, Breaking China CSI 1000 index surges 7% That is crazy after President Xiin Ping discusses stabilizing markets with Regulators.

So the reason this didn't happen in the past couple days is because it was a little too high level. It was a little too vague of like what they are or aren't going to do. But now that the President was literally like hey, I'm talking with The Regulators the markets in China were like oh okay, this is probably something good. like the government's going to step in and that's exactly why we literally saw one of the best gains ever for that market.

The CSI 1000 index is on track for the biggest single day gain in history. This comes after nearly $7 trillion of value has been wiped out of China stock market. Not even Short Selling banss or very stimulus measures were able to stop the crash. Did President X just set the bottom I Don't know I don't want to make that prediction in the short term as we just listened to the JP Morgan analyst that was on Bloomberg This really is a tenuous time for the Chinese economy.

I mean just. we're seeing the economic growth slow down more than anticipated. We know that there's the shadow banking issues. We know there's the real estate issues.

We know that there's just general discontent with the government if you ask me. I Get it? A lot of Wall Street is all like no, it's great. It's great. It's great.

Like you should invest in China you should invest in China But I think the writing's been on the wall for the past couple years that they have serious serious problems that they're going to have to be battling with over the next coming years and the next coming decades. and said this a million times. But if this is your first time watching one of my videos I want to restate that I Don't think China's economy stays as number two for much longer I think before you know it, Germany and China are going to overtake it and then eventually I think India is going to shoot all the way up to number two. Uh, currently sitting in at like four or five.

this is the beginning of the end of a world power. and I think it's going to take many years, potentially many decades for it to play out. But this is just it. It's truly wild what we're seeing right now.

If the US was smart, if other Global powers are smart, they would obviously take advantage of this particular situation. Uh, not only from just the weakness and a little bit more of a power struggle, but also just from buying out the good companies and getting the good. Tech Like there's always going to be opportunity here. So I don't think this is by any means U necessary to cause like Panic or fear it's just a moment of opportunity.

but this particular narrative I'm not seeing that many people talk about it I wholeheartedly believe it's massively important and it's definitely a storyline we should be paying attention to over the next couple weeks. without a doubt, probably the next couple months because I think there's going to be large, large Ripple effects. So when you're paying attention to the global economics, don't forget to check in on what in the world's going on with China Because it was crashing, crashing, crashing, crashing crashing and now The Regulators slth president are attempting to catch the falling knife. Will they be able to pull it off? I Have no idea, Only time will tell.