Over 500,000 views!"We are still increasing China!"Chief Investment Officer of the largest asset management institution group in Europe spoke heavy voices

In recent years, with the acceleration of the two -way opening process of China's capital market and overseas markets, global investors buying China have become the general trend. At the same time, Chinese investors have stood on the international stage and compete on the same stage with many top institutions.

How do top institutions invest in the Chinese market? What is the thinking and strategy of layout in China? The interconnection continues to deepen, what role is the A -share and Hong Kong stock market playing? How should global investors share the growth of China's economy?

China Fund reports the new series of "Dialogue" column 2022- "Peak Dialogue · Top Global Top Global Institutions Watch China" wonderful attack!

At 19:00 on August 8th, the fourth issue of "Peak Dialogue · Global Top Global Institutions" was launched!

The China Fund has invited Vincent Mortier, chief investment officer of Oriental Huili Asset Management Group, the largest asset management agency in Europe. U.S. inflation is high. European is facing an energy crisis. Under the new paradigm, what is the global asset layout idea? Geometry of Chinese asset allocation opportunities? The guest Vincent Mortier answered you.

(Click on the picture to view the wonderful live broadcast back)

Interview golden sentence

Vincent mortier:

The first goal of investors is to work hard to cover inflation without losing their purchasing power, which means that searching for investment methods that can continue to generate 3%to 4%.

Globally, a diversified investment portfolio should reach at least 12%to 15%. This is much higher than the current level of Chinese assets in the global investor portfolio.

Now that if you invest in a place where there are growth, there will be good investment prospects, so this is why China is still a good investment destination even today.

When no one dares to bet in China, we are continuing to excavate opportunities. After the market rebounded in the second quarter, we believe that the market will continue to warm up. We will continue to increase investment in China.

I am not sure if it is appropriate for China to use the value and growth two -point method. I think it will be better for superimposed quality indicators as screening models. "Quality" is the focus of our attention to China today.

Holding cash will not lose money. So don't easily lose cash, consider whether there are good things worth consumption of cash. When having cash, you can seize the opportunity when the opportunity comes.

Textual record

Moderator: Talk to the top global institutions and look at China in a kind of thinking. Hello everyone, welcome to the high -end dialogue show "Peak Dialogue" created by the China Fund. I am Juanjuan.

With the advancement of China's financial market opening process, foreign capital has become a force in the Chinese market that cannot be ignored. They participated in A -share investment by setting up joint ventures and establishing wholly -owned companies and stock interconnection mechanisms.

At the moment, has the idea of ​​foreign investment in China changed? What roles China plays in their global asset allocation? Today we invited a special guest, and he was one of the excellent candidates to answer these questions. He is Vincent Mortier, chief investor from the French asset management agency Oriental Group, and he has a Chinese name called Meng Wenrui.

Oriental Huili Asset Management is the largest and top ten asset management institutions in Europe, with the latest management scale of more than 2 trillion euros. Oriental Huili Asset Management is also one of the most deepest foreign -funded asset management agencies in China. It has two joint ventures in China -Agricultural Bank of China Huili Fund and Huihua Finance. Huihua Financial is the first joint venture wealth management company in my country.

Meng Wenrui is a veteran of the financial market and has 26 years of experience in the global financial industry. Since February 2022, he began to be the chief investment officer of Dongfang Huili Asset Management Group. Now Meng Wenrui is already online, let's connect him.

Vincent, thank you for participating in this show. First I want you to say hello to our audience.

Vincent Mortier: Good morning everyone, good afternoon. I am very happy to be with you today. My Chinese name is Meng Wenrui. I am the chief investment officer of Dongfang Huili Asset Management Group, and we are a non -American asset management company.

Moderator: Okay, great, I am very happy that you can participate in this show. As I mentioned in the previous interaction, as the first batch of to customers, "inflation is not temporary but continued" one of the global asset management companies, and you lead the Federal Reserve. In addition, I think that Oriental Huili Asset Management is one of the first batch of asset management companies that clearly put forward the word "paradigm transformation". Now it is becoming a consensus, so I want to deeply and correctly applaud for you.

I'm really glad you participated in this show today, and we all experienced a lot in the first half of 2022. First of all, I want to know, is your current feelings be relieved? Or are you preparing for more storms that are coming?

Vincent Mortier: Yes. In fact, it is really difficult in the first half of 2022. We need to show a humble attitude in the second half of the year and the next few weeks, or even a few months.

We will also face many uncertain factors, such as where will inflation go? When will inflation stabilize? And does it fall? Where will we fall into a recession? Especially in Europe facing deeper recessions, especially the central banks of which countries, such as the Fed or the Central Bank of Europe, will they go too far? Will they look back to find the right balance? These are unknown, so it may be unstable in the next few months. Unfortunately, to this day, I can't assert "we are out of danger." So when it is not eloquent now, it is not known which stage can be relaxed. Moderator: Yes, I bet that you do n’t have a holiday mood. Then in the recent research report, you mentioned that the most likely situation of the global economy is incredible inflation. Can you explain in detail? What is incredible inflation? I think a very interesting point you mentioned is that the central bank may gradually endure a higher inflation rate. So please explain to us what are the reasons?

Vincent Mortier: Yes, it is true. First of all, we need to remember that few people really understand the inflation. We have lived for decades without inflation, so this is a new thing for many people. This is why the central bank is very nervous, because this is a new trend, to some extent back to the 1970s.

In fact, it is not a bad thing if some inflation is well controlled. Especially if inflation is associated with economic activities, when you have experienced some inflation, your debt burden will be reduced. As you may know, most countries are now facing a lot of debt, so when you find that a certain inflation occurs, your debt level compared to GDP is declining. Therefore, to some extent, inflation provides some new space for the government to borrow more money. Therefore, this is why the central government can still control the inflation rate in considering economic conditions and the government's debt status.

What is the current problem? What is the level of inflation? We believe that the 2%inflation level target set by the Fed and the European Central Bank is outdated. We believe that the Fed and the European Central Bank will be more likely to accept the level of inflation from 3%to 4%, but such as 10%of such high goals will not be accepted.

Suppose we go back to see, we think we will return to the level of 4%next year, which will be acceptable and even positive. So this is indeed a change of paradigmatic, and it is also a change in the central bank's thinking model.

Moderator: Suppose the Fed can withstand 3%or 4%of inflation, does this mean that the Fed will eventually determine that interest rate levels will also be adjusted?

Vincent Mortier: We think it will be possible lower than the final interest rate that has been reflected in the current market. Therefore, the most likely situation is less than 3%of interest rates, so we think that the Fed and the European Central Bank do less than they want. In fact, considering that socio -economic activities are also struggling, and there have been recessions in Europe, so we may even reduce interest rates when we meet in June next year, and see that the Fed will start to reduce interest rates. Of course, this will be a gradual process.

Moderator: How much do you think how many hikes do the Fed need to increase before the final containment of inflation? In a variety of market forecasts, which location do you predict? Do you think you are an optimistic side?

Vincent Mortier: Yes, indeed. We believe that the Fed will continue to maintain strictness and eagle at the next meeting. However, in terms of economic data, the employment market in the United States may become more difficult. I don't know if you see these news. In the past, many large companies in the United States had announced layoffs, and the situation may begin worsening in September and October, and then the Fed will stop slightly. So this is why we believe that there may be 1%or 1.25%of the cumulative interest rate hikes, and there will be no more in the United States. In Europe, there must be 25 consecutive basis interest rate hikes, and finally returned to zero interest rates. Remember that Europe may face negative constraints. We are not sure if the European Central Bank can go further and enter a positive field.

Moderator: The views you provide are very beneficial. I will say that we look at it (the central bank's measures). I found another very interesting thing and very inspiring. Oriental Huili Asset Management tried to incorporate psychological analysis into inflation analysis. Can you please explain to us how to "narrate inflation" to affect market or inflation?

Vincent Mortier: Okay. In fact, inflation is a very complicated parameter in terms of understanding and modeling. First of all, it is understood from psychological dimensions that people look forward to inflation and their behavior is the same. Because they look forward to inflation, they will buy it in advance, because they expect the price to rise further, so buy more in advance. The result they do is very easy to cause inflation. Therefore, this is a self -promoting expectation to some extent.

There are also some economic participants who make some companies profit from this environment. Thanks to some prices rising, although they do not care about inflation themselves. These situations should be added to the psychological effects of inflation. So this is an expected issue, and people generally expect more inflation.

This is also a problem of lagging effects and diffusion. Inflation takes a long time to spread. For example, a component of inflation in the United States is houses, such as housing and rent. However, the correction of rising rental prices takes a few months or after a few years. This is why we have a lagging effect, and inflation is often swaying, so this takes time to keep up with its rhythm.

But this is also a time to find a solution, the same is true of the commodity market. Inflation from commodity energy, food, and price is also expected by financial participants. Therefore, this is why there are speculative psychological components related to inflation parameters, and it is why the central bank is difficult to control inflation. It is precisely because of these similar influence and psychological influence that now I understand that psychological factors have played a great role in the persistence of inflation.

Moderator: So what exactly is the correct movement of inflation for ordinary investors? Do you expect inflation or other aspects?

Vincent Mortier: Yes. Indeed, it takes time to restore normal in this regard, so people should think that the inflation rate of 3%to 4%will be a new normal in the next few years, so they need to consider actual returns. Under the premise of inflation, what kind of return can they get.

For me, as an investor, the first goal is to work hard to cover inflation and do not lose its purchasing power, so this means finding an investment method that can continue to generate 3%to 4%. This method is actually not so obvious, so this means investing in some high -dividend stocks, or government bonds that are income. In fact, the 10 -year interest rate in the United States is currently about 3%. When you invest in this tool, in fact you can hedge the effect of inflation.

Moderator: Okay. You just mentioned that the European Central Bank is facing different issues from the Federal Reserve. The first question is that do you think the European Central Bank is behind inflation? Or do we blame the European Central Bank? Because it does have nothing to do in the inflation caused by supply -driven inflation.

Vincent Morter: There is no doubt that the European Central Bank must be behind the curve and is very backward, but I don't blame them so much. Because the European Central Bank governor Ragard's situation is very difficult, this is a job I don't want to do, because this is a difficult task, and she has many different work matters to prioritize.

For me, the first task of the European Central Bank is to maintain the unity of the euro area. You should remember our crisis in 2011, in fact it was very bad at the time. In August, the hot month, from August to November, the euro area experienced a crisis. The primary goal of the European Central Bank is to survive, and the euro area cannot be separated. This is the first goal. Because the task of the European Central Bank is to protect the euro, the euro is very special currency. It is a currency issued by a central bank, but it uses circulation between many countries and does not coordinate well.

The second goal of the European Central Bank is to ensure support for economic activities. If it enters the recession, this is actually the situation in Europe. I think it has fallen into a decline in Europe, and the European Central Bank will be obliged to help countries facing recession.

The third goal is also the theoretical main goal to maintain stable prices. But for me, the target of this stable price is the last and the third goal. Therefore, this is why the European Central Bank is behind the curve, and it will continue to lag behind the curve because we cannot reconcile these goals at the same time. Too restrictions, so they will focus on the first goal, that is, maintain the unity of the euro zone. That's why we believe that they will not increase too much interest rates, and they will continue to adopt loose policies to provide support, such as Italian debt.

Moderator: Therefore, maintaining the unity of the euro zone, supporting economic activities, and maintaining price stability. I don't think that three goals can be completed at the same time.

Vincent Mortier: This is impossible.

Moderator: So the European Central Bank needs to make some compromises. But if you compromise on the inflation problem, can it predict the disaster effect that will eventually occur?

Vincent Mortier: This is a very important issue. Because if you are right, considering the nature of the European economic recession, this is different from the United States. It will return to 3%to 4%next year. It should be a relatively controllable.

But one of the biggest risks we face is that we need to remember that in Europe, we face the Russian -Ukraine conflict incident, which has not ended. We don't know how long it will last, we don't know how it will evolve. For example, if Russia cuts off natural gas supply to Europe in the next few weeks or months, this is a possibility. Then inflation will rush into the clouds, and the cost will continue to rise. This is a big risk and a very extreme risk. This risk only affects Europe, but the United States does not need to worry, and Asia has not been really affected. So this is a special risk for Europe.

It is conceivable that this is a very bad scene. We hope it will not happen, but in terms of geopolitical, you never know what will happen, especially in Russia. So this is difficult.

Moderator: Even so, Ms. Lagarde has become accustomed to difficult tasks. But I think this is a very challenging task even for her.

Vincent Mortier: In the Board of the European Central Bank, there are very orthodox combinations such as Germans, Dutch or Finns, but also Greeks and Italians. We do not have the same goals or have no same constraints. It is a great challenge to put all these countries together to form a consensus together, so this is also a very political work.

Moderator: Some people once joked that there would be bad things that happened when Ms. Lagardy changed jobs. I think we have observed at least many such coincidences.

You have suggested that customers do not ignore the Chinese market. At that time, there were not many global investment managers willing to invest in China. I want to know that there are more friends who have reached such a consensus now than in the past?

Vincent Mortier: Yes, in fact we did do this. Over the past 15 years, we have maintained a positive attitude towards China for a long time.

In fact, in April this year, I also issued a clear appeal that China's assets are becoming cheap. Now that people should increase their holdings, although the US and European investors at the time were almost sold.

Indeed, at the time, this was not a very popular goal, but we did add Chinese assets to our investment portfolio. At that time, I thought I was concerned that when I saw the performance of the Chinese market, this was a very good decision. From then on, compared with the current market, in the past few months, due to some good reasons, China has been one of the best performances.

For some customers, uncertainty is part of holding Chinese assets, but for some customers, they think that China has not done well in ESG, and we have argued a lot for this. In fact, the opposite is the opposite. I think that China has made a lot of efforts to deal with inequality and respond to climate change. China has done much better than the United States. So we will argue with some of our customers, especially American customers.

Moderator: I think it is just the beginning. Because in the second quarter, the Chinese market has performed very well. I think it is much better than most other countries, so it is patient.

In the early stages of the second quarter, I read the articles you published on some media, so I think this is a very insightful point of view and very much attention.

Vincent Mortier: When no one dares to bet in China, we are actually constantly excavating opportunities. So even if we have seen a rebound, we think it will continue, and we are not worried about the prospects of valuation. In the middle period, because it has experienced it, it will not be staged again in the future. Therefore, we adhere to this view and overall increased Chinese assets.

Moderator: Okay, I want to ask you a question in configuring China. I have a point of view that it is best to use China as a separate asset category, but some people will say that they just include the Chinese market into the emerging market basket. What do you think?

Vincent Mortier: In fact I would say both. China is now part of the benchmark of emerging markets, so when you invest in emerging markets, you will naturally buy China. We believe that our customers are currently too low to allocate emerging markets, so we urge them to transfer funds to emerging markets and have some risk exposure to some Chinese markets. More importantly, we are now promoting many customers to have a specific, stable distribution ratio to allocate Chinese assets. The most important thing is that the supercompatch comes from a specific allocation scheme. We now believe that in global, in a diversified investment portfolio, China should get at least 12%to 15%of quotas.

Moderator: This is much higher than the current level of allocation of Chinese assets in global investors, is it?

Vincent Mortier: Yes. Once again, the judgment of the current judgment is from the perspective of the medium and long term. Of course, you can adjust and change the combination of stocks and bonds to maintain the balance of credit and liquidity.

Moderator: Okay. I just read a survey from Bank of America. Regarding the survey of global investors, I am not sure if you noticed that the Chinese and A -share markets are far from the most crowded transactions.

Even so, we noticed that in the past 2 or 3 months, we see more positive emotions in the Chinese market than April or March because of the virus. But this still depends on your own judgment. It is far from the central crowd. So far, this is far from the most crowded transactions, because everyone is optimistic about the US dollar and is optimistic about the US market, right?

Vincent Mortier: Yes, we also saw this ourselves. We and our customers generally insufficient investment in China's emerging industries. We continue to explain to them that this is a mistake, and they should be back. This does take some time to make some investors change the asset allocation.

This emotion begins to change slowly, and then we need to distinguish when this emotion will be transformed into a position, because you can say that I feel better, but what is important is that you need to implement it, you need to carry out the actual buy and sell operate. So we have not done this globally.

Fairly, the more times you go to the West, the more times you go to the United Kingdom and the United States, which means that you will find more people who are suspicious and adopt a low match. However, I have seen in my colleagues that compared with the European market, they have taken more actions in the Southeast Asian market or have more positive emotions.

What we explain to customers is that politics is one thing and the economy is another thing. They should invest according to the value of the investment target itself. We are not here to become a moral group or to express some political views. This is not a job we have to do.

Now if you invest in a place where there are growth, you will have good positions and investment prospects, so this is why China is still a good value market even today.

Moderator: Vincent, I also have a problem, about configuring the Chinese market. Because China is largely a growth market, as you mentioned just now.

I want to know whether global investors should consider more attention to China's value stocks based on the following two reasons: one is the rotation of global value stocks; the other is that China is turning its economic development to a higher quality area, and emphasizes that it emphasizes that it emphasizes that it is more emphasized. The quality of growth is not simply. Is it right? What do you think of?

Vincent Mortier: This is a very good problem. Indeed, investors have studied value and growth factors. For China, you just mentioned that what is really important to me is quality, which exceeds the so -called value or growth, so it is important to choose The target, this is also the pursuit of this quality growth, that is, value innovation.

There are many innovative companies in China, so returning to the core attention point, many companies are promoting the trend of innovation. In the process, people began to come in to higher goals to achieve future innovation, and find ways to improve efficiency in technology.

Therefore, I am not sure whether it is a good model for China as a good model for China. I think it will be better for the superposition quality indicators as the screening model. This is the focus of our attention to China today.

Moderator: This is very inspiring. Because in general, the current valuation of A shares is still quite attractive. Even if it has a small rebound in the second quarter, the valuation of the Chinese market is still relatively attractive compared to other markets. The economy slows down, but this is still a considerable speed increase, right?

Vincent Mortier: Yes. This is why investors think that investors should look at things in a new way. From part of the situation in the Chinese economy, it can no longer call it a developing country. China has become a very developed country in many fields, and it is actually more developed than some super developed countries. So I think that the concepts of developed countries and emerging countries in the past have been outdated.

In terms of public finances, more and more developed countries have performed like emerging countries; from the perspective of GDP, some emerging market countries have developed more and more like developed countries. So I think this is a way to look at things wrongly. Unfortunately, many investors continue to classify this. I think this is a mistake. It will change in the next few years, and we are promoting this change.

Moderator: Okay, I hope everyone will wait and see. You work hard to express to the outside world, which should be more optimistic about the Chinese market. In the July study, we also noticed that you are more active than a month or two, but you are cautious about Chinese technology companies.

Vincent Mortier: Yes.

Moderator: Can you explain it?

Vincent Mortier: We still take a more cautious attitude towards these companies. Despite the fewer and fewer holdings, we have become more optimistic than in the past, based on many reasons below.

First of all, a regulation is still being formulated, and we think it has not completely ended. This is a very important topic, because supervision can completely change the direction of the industry. We have seen the substantial impact of regulatory supervision from the incidents of many companies, so we believe that supervision has nothing to do with technology. In terms of supervision, we have no correct answer.

As for competition, some companies are challenged by other companies, which is normal. But even if it is a very great technology today, it will become outdated technology or encounter challenges. I think this situation is happening in China. It is forming this kind of competition, so it is difficult to easily distinguish winners and losers because they will definitely become winners and losers. I think the competitive pattern takes a few years to stabilize, but the positive side is that the supervision will become clear.

Some very large technology companies in China have recently emphasized cost control. This is a new thing, so they are paying attention to the bottom line and profitability. In the past, technology companies will only increase their growth at all costs. Now that they have become more and more difficult, they are also showing that they need to pay attention to and control costs. For shareholders, this is a very positive signal because it means that they will focus on dividend or the interests of shareholders. So this is why technology companies have become more positive recently. Moderator: But it has not been actively let you allocate funds to these companies.

Vincent Mortier: Take your time.

Moderator: This is your style, let us wait for the dust. As you mentioned just now, what may be needed now is patience, and we also need to have more patience to these companies.

We talked about valuations and mentioned valuations. I think we must pay attention to another market -the Hong Kong market. What do you think of the Hong Kong market? Do you think it is attractive? So what is the performance of the Hong Kong market compared to the A -share market?

Vincent Mortier: Yes. The Hong Kong market has some advantages, and we also have some interest in it. However, our attitude towards the A -share market will be more active and more investment than the Hong Kong market. Because the Hong Kong market is very special, to some extent, it is a combination of real estate and some industrial companies, local banks and some large Chinese game companies.

The Hong Kong market lacks a large number of large and medium -sized Chinese companies, and such companies are invisible in the Hong Kong market. We believe this is the most interesting point, because there are more innovations here.

As you mentioned earlier, there will be more risk exposure compared to quality. Compared with the Hong Kong market, more opportunities may be found in the A -share market, so we are slightly optimistic about the local market. One day the economy is about to be reopened. I don't know when it is. I hope I can return to Hong Kong and Shanghai next month. I have never been able to come for more than two and a half years. So opening will eventually happen, and then Hong Kong stocks will benefit from it. We now prefer to invest in related businesses in the A -share market.

Moderator: But you just pointed out another very important trend, that is, when configuring the Chinese market, you start to pay more attention to small and medium -sized disks. Because in people's impression, when investing in China, global investors at least a few years ago, they only paid attention to large blue chip stocks. But now we think they are diversified, turning more attention to small -cap stocks and medium -cap stocks. Can you share your views more about this?

Vincent Mortier: In fact, for investors, even if it has changed so far, we still pay attention to the biggest company because this is the simplest way. And these companies are international -level companies with financial disclosure or information disclosure. So if you want to analyze or study the accounts of the company's balance sheet, only very large companies can provide it, and the results prove this. Many small and medium -cap stocks can be obtained now, which means that value creation will be more and more. There is a phenomenon in China. China Cermers' and small -cap stocks are quite close to large -cap stocks. This is a considerable company.

Moderator: Yes.

Vincent Mortier: We think we should pay more attention to these companies, because we think there will be greater growth here in the future. So this is why investment needs to be more diverse and try to find a good story, not just a large company that everyone already knows and has been well covered.

Moderator: Say well. I think we will see that more attention will be transferred to small and medium -cap stocks, because everyone is betting on large -cap stocks, so there may be no Alpha income.

For the next two issues, I want to focus on energy transformation, because this will be a general trend that dominates the global capital market in the next decades. However, betting in energy transformation in 2022 is a very challenging task, because if you completely abandon the asset allocation related to traditional energy or fossil fuel, I think the investment group in the first half of the year will perform very "ugly". How should Chinese investors balance between short -term goals and long -term goals? Vincent Mortier: This is a very important issue and a complex problem. Because on the one hand, we are short -term demand and long -term demand, and the two will collide. At the same time, we see that climate change has caused natural disasters and global warming, which is bringing more and more specific consequences.

The temperature in Paris two days ago is 41 ° C. I can tell you that this is already very common. There are many rainwater and many forest fires now, and many forest ecology has been affected. This is what has been happening. This sounded the alarm, which was indeed a huge challenge.

I can only say that. We believe that only the state, the local government, and the central government, especially the core regulators, unite to form a special force for environmental issues, and raise funds for this, such as the implementation of green bonds to implement medium- and long -term projects.

By the way, China has always been the largest issuer of green bonds, which is a way to achieve financing for market projects. At the same time, I fully agree with your opinion. We should also transform with traditional energy producers, which is not contradictory with the transformation of green energy. As you said, we should not withdraw a lot of capital from oil, which will not be a clever way.

A company or investment should invest in renewable energy and alternative energy, so this is a collective effort. We also need to find some measures that meet the energy needs of instant real -time, so this is how the states play a role here. What we talk about is the project that takes decades, this is our interpretation. But I think our life this year is the alarm bell that we wake up, although it is very painful.

Moderator: I think global investors need to pay more attention to the complexity of this issue. Some of the people of global investors are starting to adopt clever or practical strategies to solve this problem because we cannot withdraw capital from traditional energy companies Essence We still need them, and we cannot afford high inflation caused by rising energy prices, right?

Vincent Mortier: Absolutely, this is the main point.

Moderator: As far as I know, Europe is still very dedicated to the clean energy strategy, so do you think the safety of energy supply has not worried about long -term concerns?

Vincent Mortier: In Europe, when I talked about the alarm, it was a very reckless alarm for Europe. Because in Europe, we have no energy independence. We rely on oil and natural gas, we do not produce any oil and gas.

The European Commission is working together to formulate a large investment plan that will be shared between countries, and the European Central Bank will also provide help to provide funds for some projects. The most striking thing is that last year's topic of clean energy, European countries' patents in innovation solutions were 50%more than the United States.

Moderator: This is very interesting.

Vincent Mortier: We are making some investment, such as hydrogen, which is a very important investment. Private enterprises are developing new solutions, and it is becoming a valuable inheritance. In France, we conducted some tests of hydrogen fuel vehicle projects, which is interesting, but this is a high -tech.

Therefore, we are willing to invest in research and development in this regard. I think Europe is ahead of the patent field because we started many years ago. So this is why I am not so pessimistic. It should be the first request, but it is also a question that pays together and requires forward. What I want to say is that this is a kind of progressive collective wish, and some very smart experts will find a solution together.

Moderator: Do you think energy transformation is a agenda project that can at least unite the euro zone?

Vincent Mortier: Yes, of course. This is a key issue that will gradually form a consensus, and the investment benefits will remain consistent, so you are right. I think this is a competition that enables the EU to be more integrated.

Moderator: Okay, I am glad to know this. My question has been asked, I thank you for your detailed answer. Next, I will enter another link, also my favorite link -Quick question and answer. I will ask a few short questions, hoping that you can provide fast and short and powerful answers. How are we starting now?

Vincent Mortier: Okay.

Moderator: First of all, what is the most important risk you need to pay attention to in the remaining time in 2022?

Vincent Mortier: Geopolitics.

Moderator: Okay. Some people say it is inflation, but I think this is related.

Vincent Mortier: Okay, of course.

Moderator: So what is your shelling port in 2022?

Vincent Mortier: Cash. Moderator: What does cash mean for you and patience? Is it flexible?

Vincent Mortier: Yes. First hold cash and do not lose money. Unfortunately, I was worried that our market would continue to shake in the remaining time this year. So don't easily lose cash, consider whether there are good things worth consumption of cash. Secondly, cash has the saying of "cash as king", which means that when there is cash, they can seize the opportunity when the opportunity comes.

If the market has fallen sharply, for example, in October last year, if you have cash, you can easily and quickly use your cash to buy at the bottom. So this is why there are some advantages in cash in the current background.

Moderator: Okay, so how much do you think is the possibility of recession in the euro area this year?

Vincent Mortier: The euro area is already declining, the problem is how long it will last and the degree of recession.

Moderator: Yes.

Vincent Mortier: But unfortunately, the euro area has entered a decline, which does depend on multiple parameters. We expect that Europe will still decline next year. For everyone, we don't believe it will be deep, but it will last for a while.

Moderator: So it is a lighter but longer recession.

Vincent Mortier: Yes.

Moderator: Tell us a lesson you want to know early.

Vincent Mortier: Time is the largest asset. You need to manage your time and arrange your own schedule.

Moderator: Okay, great. Please list two people who you want to have dinner with them, who are alive or die.

Vincent Mortier: First of all, my grandfather I have never seen before, I know nothing about him. The second is a French artist named Pierre Sulan. If you know him, he is the most famous French painter and is 101 years old.

Moderator: We have only passed from the textbooks who have passed away from the textbooks. So what are you thinking about the most attention in the Chinese market in the next ten years?

Vincent Mortier: Changes in the population structure.

Moderator: Okay.

Vincent Mortier: I think from the middle and long term, for China, the population does not decrease, and on average, each woman can have more than two children, which is a greater challenge. I know this is a challenge, but this is important in the middle and long term.

Moderator: Okay, this is very beneficial. Thank you vincent, this is great, and the amount of information is very large. Thank you very much for your time, especially in Paris at 42 ° C. thank you very much.

Vincent Mortier: Thank you.

Moderator: I wish you a happy! goodbye.

The market continues to fluctuate, maintains rationality, and fully disperse the combination, which may be the decisive way of investing this year. More exciting investment views, in the "Dialogue" column of the China Fund. Thank you for your continuous attention, we see you next time.

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