You know to sophia's point i want to Throw up this chart taking a look at the Golden dragon uh index every single time Over the past year that has tried to Test that 50-day moving average it's Failed to break higher so Does this really tell us that the market And investors are still wary of calling A bottom when it comes to the regulatory Uncertainty I think that's definitely right i think There are a lot of uncertainties around The regulatories and policies so we Mentioned that from the u.s side we face The delays the listing risk from the Industry side from a policy point of View domestic policy seems to be Tightening the internet names given that Internet names uh have a very high Weight in the index i think we have Reasons to worry that there are still Certain uncertainties around these Sectors however i want to say that Despite the fact there are uncertainties Despite the fact that I think a lot of companies may have to Revise their earning A little bit due to the coffee situation These companies first of all are very Robust in terms of operations and They're very strong in innovation as Well the second point is really about Valuation you can see that the valuation Of these internet names are at very low
Level so i think long-term investors can Be a little bit more uh optimistic about The future outlook and Start to accumulate when stock price Really have very big movements What about the longer term outlook when It comes to property is there going to Be more consolidation and and also we Haven't really seen more supportive Policies come through for the industry I think you're right um i think some Investors are disappointed by the fact That we haven't really see Uh fiscal and monetary policy supporting The real estate market however I tend to believe that this is the Darkest moment for the real estate Market and developers From a fundamental point of view you see Sales declining you see delays in Payment of the debt and you see The delays in disclosure of the Financial numbers We do see Certain news about cities relaxing for Example buyers uh restrictions on the Property market hopefully uh we will Also see rates going down which will Definitely support the demand From a Leverage point of view so i think it is Almost at the darkest point if we still Think that the chinese government wants To hit 5.5 percent gdp growth i think uh
Relaxing the property market seems to be The right choice and things can Potentially improve from now on Really the relaxation though not Happening on the code zero policy side Of things the understanding now is that Given how it's been tweaked a little bit That perhaps consumers will take a hit But not so much industrials Manufacturers where we are seeing more Of that closed-loop system in place Every time cities go under lockdown How do you really play that into your Market strategy Yeah when we are looking at the Case zero policy for example in shanghai We do realize that most of the Activities stop for about Uh half a month and potentially that Could be extended to another seven days Or slightly longer so the direct impact Is about half a month to a month of lack Of activities However given that shanghai is not a Major manufacturing base the impact of From the manufacturing side or expose That could be less than that however we Also see other cities you know start to Adopt the same uh policies against Corvit so the impact of Manufacturing and expo will be seen in The later months But if we compare the situation with the Same situation in 2020 for example march
2020 is also a very weak month however Given the recovery and the monetary and The fiscal support uh we see recovery Very soon so i think i think it's really Depending on what we will see uh as the Uh policy as well as support side what We saw in 2020 as well were those stay At home trades doing very well i'm Talking about gaming entertainment and So forth are we going to see the same uh Now that we're seeing more lockdowns Across china as well Yeah i think That's definitely true uh you can see More activities for online entertainment You can see more usages of online Conference calls for example uh given That most of the people are staying at Home and the purchase of grocery Purchase of staples are definitely Increasing uh the Supermarket businesses are recovering as Well so i think what you saw In march 2020 first quarter 2020 will be Seen this year as well
