Alice Han

Well, it's a bit of a mixed bag. And thank you for that question, Ed. Certainly, if you look at some metrics, whether it's deflation in the economy or it's the GDP outlook, China is continuing to slow down. It's continuing to face these big disinflationary pressures.

But at the same time, if you look at the stock market, it's been doing pretty well, especially now with announcements of DeepSeek and Alibaba's AI models. We've seen actually Chinese tech stocks, including Buyu Buyu Di, do extremely, extremely well. And this is in the midst of obviously these tariff threats that have been thrown onto China.

But at the same time, if you look at the stock market, it's been doing pretty well, especially now with announcements of DeepSeek and Alibaba's AI models. We've seen actually Chinese tech stocks, including Buyu Buyu Di, do extremely, extremely well. And this is in the midst of obviously these tariff threats that have been thrown onto China.

But at the same time, if you look at the stock market, it's been doing pretty well, especially now with announcements of DeepSeek and Alibaba's AI models. We've seen actually Chinese tech stocks, including Buyu Buyu Di, do extremely, extremely well. And this is in the midst of obviously these tariff threats that have been thrown onto China.

We've seen the 10% tariffs that have just been put into place on Chinese goods. China has retaliated in kind in the last few days. And certainly now we have more threats of 25% tariffs on steel and aluminum across the board, not just China, but a host of countries. So China is facing a lot of these trade war risks and pressures to the economy.

We've seen the 10% tariffs that have just been put into place on Chinese goods. China has retaliated in kind in the last few days. And certainly now we have more threats of 25% tariffs on steel and aluminum across the board, not just China, but a host of countries. So China is facing a lot of these trade war risks and pressures to the economy.

We've seen the 10% tariffs that have just been put into place on Chinese goods. China has retaliated in kind in the last few days. And certainly now we have more threats of 25% tariffs on steel and aluminum across the board, not just China, but a host of countries. So China is facing a lot of these trade war risks and pressures to the economy.

But at the same time, it is riding the tailwinds of positive, I would say, upbeat news about Chinese tech, Chinese AI, Chinese autonomous vehicles in the case of BYD. And certainly, our clients are particularly interested in the stimulus that is probably going to come down the pipeline in March when the NPC meets.

But at the same time, it is riding the tailwinds of positive, I would say, upbeat news about Chinese tech, Chinese AI, Chinese autonomous vehicles in the case of BYD. And certainly, our clients are particularly interested in the stimulus that is probably going to come down the pipeline in March when the NPC meets.

But at the same time, it is riding the tailwinds of positive, I would say, upbeat news about Chinese tech, Chinese AI, Chinese autonomous vehicles in the case of BYD. And certainly, our clients are particularly interested in the stimulus that is probably going to come down the pipeline in March when the NPC meets.

So an uptick in both monetary and fiscal should be supportive of more Chinese equities. And so we really get this bifurcation. The stocks look pretty attractive, but at the same time, we've got these deep-seated macro issues that aren't going away anytime soon.

So an uptick in both monetary and fiscal should be supportive of more Chinese equities. And so we really get this bifurcation. The stocks look pretty attractive, but at the same time, we've got these deep-seated macro issues that aren't going away anytime soon.

So an uptick in both monetary and fiscal should be supportive of more Chinese equities. And so we really get this bifurcation. The stocks look pretty attractive, but at the same time, we've got these deep-seated macro issues that aren't going away anytime soon.

Well, deflation is a sign of weak demand internally. And in the case of China, this is borne out by two major factors.

Well, deflation is a sign of weak demand internally. And in the case of China, this is borne out by two major factors.

Well, deflation is a sign of weak demand internally. And in the case of China, this is borne out by two major factors.

One is the fact that domestic demand has been hit hard by a number of factors, the financial repression of the household sector, the fact that interest rates remain extremely low at the expense of the household sector, and the fact that COVID really had long-term consequences on the household balance sheets.

One is the fact that domestic demand has been hit hard by a number of factors, the financial repression of the household sector, the fact that interest rates remain extremely low at the expense of the household sector, and the fact that COVID really had long-term consequences on the household balance sheets.

One is the fact that domestic demand has been hit hard by a number of factors, the financial repression of the household sector, the fact that interest rates remain extremely low at the expense of the household sector, and the fact that COVID really had long-term consequences on the household balance sheets.

Not to mention, obviously, the real estate crackdown that has obviously hit the net wealth effects for households. So we're seeing a very weak consumer environment. That has pushed prices down. Meanwhile, China is using more of its export engine machinery and manufacturing sector to try to offset some of the slowdown in the private consumption and the real estate sector.