Let me start things off with the Elections and just your broad thoughts On that so we know It's biden and our question of the day For our clients in fact Is along those lines how much can biden Contribute to this euphoria Across equity markets is this Sustainable The market has been very euphoric and Very strong both u.s equities and even The china markets here have been very Strong the market here actually feels a Bit like 2017 When we saw a lot of the big cap Consensus big Tmt names uh um seeing a huge rally Uh it feels like what's happened is that Investors have tried to gain exposure Chinese markets Uh rapidly and they've chosen to gain That exposure through the big cap Consensus name so yes it does feel like A very strong euphoric rally over the Past few months At shintai china we focus on more than Non-consensus names and we take more of A value approach to investing in growth So we still see a lot of upside for our Portfolio Right how do you marry those two things When you look at how market Equity markets have done i would say Even the last two weeks there's really
Been a bid across growth in tech You're obviously value focused there is Can those two things co-exist we believe It can and definitely in a china context So we try to capture The highest equities but we try to pay Very attractively priced Uh entry points to to gain exposure Uh so we're focused more on stocks that Are maybe off The radar of the bigger investors We try to focus on non-consensus names Our exposure is predominantly in mid cap And our exposure is very differentiated From the index from either other long Only china portfolios So our portfolio characteristics are We're offering 30 Eps growth the book and is trading Historically around 13 times pe Yeah you've outperformed suddenly you've Gone to csi uh 300 so So a good year for you uh over there It's entire in terms of what you're Seeing Uh with the consumer here in china uh How much of that consumer activity is Playing through In your portfolio of stocks how healthy Is the consumer at this point Uh the consumer seen a very very healthy Recovery so In the first half we were quite early in Actually predicting a
Sharp v-shape recovery which did happen Um Uh right after starting in march and The second half is that we're seeing Much more earnings visibility With our companies and very strong Earnings ability on going forward and Into Uh 2021 um most of the portfolio Is tracking um you know above consensus Earnings in terms of What they're guiding and we're most of Our portfolios guiding towards Above 30 in some cases about 50 earnings Growth Um for next year so we see a very Healthy recovery in the consumer we're Seeing more visibility And we're seeing a very stable backdrop In terms of macro in china so we're Overall we're very positive in terms of Our outlook Any concerns about headwinds from a Tightening stance from the pboc Uh we don't see that as a big risk so so From our standpoint of where we Are so our portfolio is predominantly um In domestic demand place Uh so we're in in stocks that are really Riding off that growth in domestic Demand um So in terms of uh fiscal monetary policy Doesn't play a big impact we think On on the portfolio holdings that we
Have um And uh you know the portfolios we have Even benefiting from some of the Domestic circulation policies that have Been announced um so if anything You know we designed to invest in these In these Types of uh uh growth stocks five years Ago our Strategy has been consistent since then And what was a forecast five years ago Appears to be a fact today because it Appears to be the fact that Uh domestic demand plays are Outperforming And that's where we're seeing a lot of Um Strong policy support as well Michelle maybe part of the value played There and you tell us Uh whether or not this constitutes Something that you would I guess entertain when it comes to Investment universe value uh old Old school old economy stocks not so Much consumption but the sort of Industrial type i mean Are there any potential value plays that You can see in that in that space Uh so we focus only on growth and Mainly consumer-driven equity so we're Not looking at traditional Type values we're looking at uh marrying High-growth stocks with a value approach
Uh so we're doing something Sort of relatively differentiated Because we're trying to really capture Growth Um with this with this value approach And we're looking elsewhere we're not Looking where everyone else is looking You know we don't necessarily have uh The consensus Names on our book we're not following Momentum so we're not In you know the big value we've seen in Tmt and tech we have not been Participating in that Um we're in stuff that's is High as high growth but where we see Value
