The transcript discusses the market pessimism that emerged in April due to escalating US-China trade tensions. It highlights the impact of these tensions on Chinese assets, particularly due to depreciation trends. The discussion also covers investor behavior, noting that many have profited from past market gains and are now cautious due to uncertainties like a weaker Chinese economy and ongoing trade issues. Fund managers are particularly concerned about economic indicators and the potential impact of surprising developments in trade talks.

What is one of the key reasons for fund managers' pessimism regarding Chinese assets?

• The increase in global oil prices

• The appreciation of the Hong Kong dollar

• The depreciation trend of Chinese assets

• The strengthening of the US economy

Why might investors choose to sell their assets during uncertain times?

• To invest in new technology stocks

• To avoid paying high taxes

• To secure gains made over the past two years

• To support local businesses

What has been the trend in market inflows over the past two years?

• A steady increase

• A fluctuating pattern

• No noticeable change

• A significant decrease

What are fund managers currently monitoring as indicators of the Chinese economy?

• Government spending

• Housing market trends

• Retail sales and PMI

• Interest rates and inflation

How might unexpected developments in US-China trade talks affect market sentiment?

• They could boost investor confidence

• They might have no impact at all

• They might lead to increased market stability

• They could hurt market sentiment