China Macro:Feedback from recent marketing,Highest sentiment in two years

Over the past few weeks, we met with investors in Europe and Asia todiscuss China macro and market. The sentiment is highest since mid-2015and investors cited global central bank accommodation and strongearnings growth as the reasons to buy on pullbacks. Compared withprevious trips, investors were less concerned about risks like debt,property, capital outflows and the RMB. Instead, investors focused on theupside risks in 2H17, the liquidity outlook and the implications of theupcoming Party Congress.