Christy Tan

The AI trade is shifting away from hyperscalers and the Mag 7 towards physical AI and infrastructure grid bottlenecks, making China's physical AI space an attractive diversification play as its IPO pipeline opens up.

China A-shares are a preferred way to play AI monetization, as investors will demand capital efficiency and punish pure-play companies that disappoint on actual monetization.

Japanese equities remain an overweight conviction call, specifically banks and financial sectors, which will become more attractive due to ongoing corporate reforms and the BOJ's monetary policy normalization.

Japanese equities remain an overweight conviction call, specifically banks and financial sectors, which will become more attractive due to ongoing corporate reforms and the BOJ's monetary policy normalization.

China equities are undervalued and underowned, trading at a 36% discount to global markets with global funds having only 1% allocation, while China is catching up in AI and has excess liquidity, making it unreasonable to be underweight.

Chinese equities are trading at ~12x forward PE versus the S&P 500 at 26x. Retail investors are returning (margin financing at record highs). The valuation gap provides a margin of safety. Tan argues you don't need the whole economy to boom, just a cyclical bottom. Harris notes the government's push for Renminbi internationalization supports the asset class. LONG. A value play within a global portfolio. Geopolitical tensions; continued property sector drag; lack of software earnings growth compared to hardware.