East Asia United Investment believes that Chinese investment-grade bonds, especially those with long-term state-owned enterprises in technology, media, and telecommunications, are promising. They are also considering purchasing floating-rate bonds from high-quality asset management companies, banks, and leasing enterprises. East Asia United Investment is positive about communication services and information technology stocks, believing that the semiconductor industry cycle has bottomed out, especially for leading companies with strong balance sheets and ample cash flow. Furthermore, the East Asia United Investment team maintains an optimistic view on the energy industry, as there has been insufficient investment in the petroleum and natural gas industries due to the emphasis on carbon reduction and energy transition in the past decade. At the current market conditions, petroleum stocks can effectively hedge geopolitical risks. Looking back at the market, East Asia United Investment states that China introduced historic measures to rescue the property market in May. The People's Bank of China announced a 300 billion RMB financing to local state-owned enterprises, acquiring idle properties to convert them into affordable housing. At the same time, domestic mortgage loan rates were deregulated, and the down payment ratio was reduced. These policies boosted investor sentiment, with the Morgan Stanley China index (USD) rising by 2.4% compared to the previous month. Although Chinese macroeconomic data remains mixed, preliminary signs of stabilization are present, favoring a positive market atmosphere. While April's retail sales growth was below expectations, industrial production recorded a 5.7% growth, exceeding market forecasts. Import growth was modest in May, but export growth surpassed expectations during the same period. East Asia United Investment believes that there are still investment opportunities in Chinese value stocks and technology stocks as China continues its structural transformation. With the expectation of global interest rates peaking, Chinese value stocks such as banks and petroleum sector companies offer high and stable dividends, with relatively lower valuations compared to global peers. The East Asia United Investment team also sees potential in internet-related stocks due to the stable performance of major internet giants, attractive valuations, and share buyback plans, which bode well for the future of Chinese technology stocks. Additionally, rapid developments in artificial intelligence have garnered attention for technology stocks in China and Taiwan. The East Asia United Investment team will closely monitor the possibility of more supportive policies being introduced at the 20th Central Committee Third Plenary Session of the Communist Party of China in July. Currently, geopolitical tensions and capital flows are important factors influencing short-term market trends. Furthermore, with the decline in US Treasury bond yields and improved risk sentiment, Asian investment-grade bonds performed strongly in May. Benefiting from favorable supply-demand conditions, Chinese investment-grade bonds have shown resilience. The negative net supply of investment-grade bonds in Asia, especially in China, has provided strong technical support to the market, and East Asia United Investment expects this trend to continue. Trading in long-term technology, media, and telecommunications bonds in China remains robust, partly due to the steady performance within the industry. In addition, with the scarcity of new bond issuances and positive developments in the Chinese real estate industry, the East Asia United Investment team maintains confidence in Chinese asset management companies. Some Chinese asset management companies have recently issued floating-rate bonds, which offer higher absolute yield levels than fixed-rate bonds while maintaining price stability. Therefore, the East Asia United Investment team finds floating-rate bonds to be quite attractive.