Recently, the manager of Plaish China Stock Fund, Liu Lu, commented on the recent rise in Chinese stocks. The bank recently conducted on-site inspections in mainland China and found early signs of stable or recovering demand in certain sectors. At the same time, many companies have seen continuous improvement in their fundamentals, shareholder returns are improving, and valuations are attractive. Plaish believes that there are good investment opportunities in areas such as the internet, tourism, education, technology, and industrial stocks that can continue to increase market share. In addition, the bank stated that the recent rise in Chinese stocks is mainly driven by four factors: 1) several large stocks including Tencent (00700) and Alibaba (09988) performed better than expected in the first quarter of 2024 the KraneShares CSI China Internet ETF rose by 25% in the past month; 2) overall improvement in shareholder return measures of Chinese listed companies, including state-owned and private enterprises (especially in the technology industry); 3) positive information released by the Central Political Bureau meeting, and the introduction of a package of real estate easing measures, including allowing local governments to purchase unsold residential housing to absorb housing inventory, lifting the lower limit on loan interest rate policies, and reducing mortgage down payment ratios to historically low levels; 4) compared to other global stock markets, valuations in the Chinese stock market are still attractive.