What do i buy what do i avoid today Good morning we still advise investors To stay very defensive so in the way for Long-term holders we're advising you to Hold Mostly the state-owned entities and Focusing on the sectors like Major banks Major insurance companies and the Utilities state-owned utility companies Over the long run in the short run for Tactical ideas we do believe that There's more that the authorities would Have to do in terms of easing in order To support the economy and therefore in The short run trading range you may want To pick up on some of the state-owned Real estate companies too Are there any concerns Given that preference for state-owned Say state-owned banks Is there any exposure i'm taking to Russia-related And events that are taking place there That i don't want at this point in time Uh most probably very very minimal uh Because uh the state would have taken Action um if the risk is very relevant And therefore um we believe that the Risk is very very minimal there And selena there's a lot of talk about Whether this ukraine situation does this In any way derail What has already been this easing bias
From the pboc or does it give them more Inclination to to aggressively ease Further Uh i believe um you would give them more Incentive in order to support the Economy because uh previously we are we Were dealing with mostly the domestic Issues especially uh when the cove is Concerned so mobility uh restriction and Things like that and now that the Uncertainty overseas is imposing more Pressure uh on the economic situation um I believe that uh it would give them More incentive to use a little bit Further and we definitely are going to Hear more from the authorities um after Or during the two sessions that are Happening um on march 5th And that was my next question on what You focus on uh you know When these the outcomes come out when it Comes to policy what are you focusing on The most when it comes to sectors and How do you position around that now Sure now from the two sessions we're Likely going to hear most of the targets Um that the government is targeting over The short run and over the long run for Example a gdp a cpi um the employment Situation And over the long run renewable energies And how they're going to uh encourage The new energy vehicles Usage
Etc and therefore um In terms of positioning yourselves in Order to align the investment with the Long-term government goals Again we do believe that firstly because Of the uncertainties out there both Domestically and Overseas we advise investors to stay Very defensive so go for mainly the Mainstream uh companies In the sectors that's going to give you Uh firstly um safer um investment in Terms of valuation so evaluation would Be Demanding and demanding and secondly Hopefully give you above average Dividend yield and um thirdly um Hopefully um when the authorities uh Give more easing signals measures um That's focusing on the sectors that's Going to benefit from the situation so Mostly would be the sectors that we've Mentioned about major banks major Insurance companies and the state-owned Property companies What about major internet platforms and Major consumer staples i know you have Been underweight that do you expect any Policy shift towards a more favorable Environment towards those two Unfortunately of late we are still Hearing regulations um that's uh Surrounding the internet and e-commerce Platforms and therefore we remain quite
Skeptical about those two sectors so Internet and e-commerce in terms of Stables yes that's definitely going to Be a sector that's uh going to benefit Over the long run From the uh increasing Consumer or consumption power in the Mainland however in the short run there Will be cost pressure because of the Inflationary situation and some of the Companies may not be able to increase Their product prices because of the Competition in the various sectors so we Would advise selectively Increase your exposure to the consumer Stables companies but not overall as a Sector
