For global market, the meeting between China and US presidents indicated a reduction in the risk of uncontrolled competition between the two countries. We expect the communications in military, climate, and economic will gradually recover.

For domestic market, we noticed additional central government bond issuance to control the spread of financial risks. While House prices、PMI and CPI indicators suggested a weak recovery in November. Entering mid-December, the Central Work Economic Conference (CEWC) will be held by Senior policymakers to discuss economic policy stance and to decide on a series of economic targets for 2024.

We expect a still-weak growth momentum in China. Therefore, we allocate our portfolio as follows,

1) Cost-conscious and value-focus Consumer goods or services

2) pharmaceutical or medical device companies. We believe the anti-corruption campaign and policy uncertainties has eased. China healthcare will benefit from an aging population.

3) Companies expanding oversea markets with Chinese competitive advantages.

4) Software and semiconductor companies，which will benefiting from the application of artificial intelligence and the growth in computing power.