aS ¢HINA IS THE SECOND LARGEST ECONOMY IN THE WORLD (THE LARGEST IF USING PPP), INVESTORS CANNOT IGNORE OR NOT INVEST IN ¢HINA, IN OUR VIEW. ¢HINESE INTERNET AND TECH COMPANIES HAVE PERMEATED NEARLY EVERY ASPECT OF THE ¢HINESE ECONOMY, PARTLY DRIVEN BY THE ABSENCE OF A LEGACY OffLINE ECONOMY, SO ANY INVESTOR KEEN TO INVEST IN ¢HINA SHOULD NOT OVERLOOK THIS SECTOR. 

fiE BELIEVE THE ¢HINESE GOVERNMENT AIMS TO MAKE ITS HOME-GROWN INTERNET AND TECH COMPANIES STRONGER NOT WEAKER, PARTICULARLY IN MARKETS OUTSIDE OF ¢HINA. tHUS, WE BELIEVE THE RECENT NEW REGULATIONS FROM THE GOVERNMENT ARE MEANT TO  STRENGTHEN THE COMPETITIVENESS AND LONGER TERM GROWTH PROSPECTS FOR THESE COMPANIES, WHILE IMPROVING  the sector’s overall health. We would view the regulations as being a bitter pill for “short TERM PAIN BUT LONG TERM GAIN.”