Philip Saunders, director of the Investment Institute, and co-portfolio manager of Chinese equities, Marvin Chang, have published their global macroeconomic outlook for the Year of the Dragon. They believe that the impact of rate cuts or tighter policies will lead to weaker growth in the United States, but at a slower pace than the already recession-hit eurozone. They expect inflation in many regions to decrease significantly in the end, with the US following suit. They believe that interest rates will peak, with short-term rates in the US, Europe, and some emerging economies reaching their peak. The US presidential election will bring uncertain factors to the macro economy. Geopolitical tensions have slightly eased during the same period. Regarding China, the country is undergoing a transition and may exceed expectations of moderate growth. On January 31, the Shanghai Composite Index fell below the 2800-point mark at the close. The outlook for the Chinese stock market is that the market risk tends to go upwards, with many investment opportunities for excess returns. The current market sentiment is weak due to various reasons, with geopolitical tensions being one of them. However, the most important driving factor remains the prospects of corporate profits, which depend on the recovery of economic activities, the stability of the real estate market, and relevant favorable policies. Compared to historical levels, valuations in China remain relatively cheap; and compared to past discounts, the current discounts in developed markets are still significant. However, the premise is that companies need to be relatively stable in profit delivery. There continue to be many attractive bottom-up stock picking opportunities in both onshore and offshore markets in China. In the consumer sector, many large Chinese brands are gaining larger market share domestically, and some brands are successfully expanding overseas. New policies are favorable for stocks with concepts related to state-owned enterprise reform.