Onshore Market：

In September, China market experienced great changes, and relevant index took a V-shaped rebound. During the first half of the month, the index fell sharply as a reflection of an ongoing economic slowdown and lowering expectations for policy stimulus. Starting from September 24, government introduced a package of stimulus policies, including monetary easing, increasing fiscal expenditure promoting domestic demand, issuing special treasury bonds, and striving to resolve local government debt and real estate risks. Due to a pessimistic investor sentiment and low portfolio positions, index rebound sharply. The introduction of these policies indicated that the Chinese government has made up its mind to stimulate the economy, and we expect subsequent detailed policies will be implemented quickly. The policy stimulus direction may change from the old investment-driven model to policies that promoting domestic demand and improving consumer confidence. We also expect implementations in the real estate and local government debt areas to resolve China's biggest financial risk. With above stimulus policies, China's economy may recover in the first quarter of 2025. For China market, we are optimistic about the domestic demand sectors and the technology sector. We will increase our position and reduce defensive stocks.

Offshore Market：

In September, the biggest event was the 50 basis point interest rate cut by the US Federal Reserve, representing a global monetary easing cycle, which will have a significant impact on global capital markets. The US economy remains healthy. We expect a minimal risk of a hard landing, and the trend of AI remain the biggest support for US market.