Core Viewpoint - The QDII funds are showing increased tolerance for stock valuations, reflecting a shift in market risk appetite as liquidity conditions change and Chinese asset prices rise globally [1][4]. Group 1: QDII Fund Investment Trends - QDII funds are beginning to invest in previously overlooked stocks, such as Blucor, which has seen its stock price rise over 110% in the last five months despite a projected net loss of 401 million yuan for 2024 [2]. - Funds are increasingly focusing on new economy sectors, with E Fund investing in Quzhi Group, which operates AI-driven vending machines, despite the company projecting a net loss of 167.2 million yuan for 2024 [3]. - Southern Fund has invested in the U.S.-listed company Manbang, which utilizes AI for logistics, marking a shift in QDII fund strategies towards more aggressive stock selection [3]. Group 2: Market Sentiment and Strategy - The shift towards a more aggressive investment strategy among QDII funds indicates growing confidence among institutional investors in the current market [4]. - Historically, QDII funds maintained strict selection criteria to avoid significant losses, but recent changes in liquidity and asset pricing have prompted a reevaluation of these strategies [4]. - Even companies with substantial losses, such as Weimeng Group, are being targeted by funds, suggesting a belief in their potential to benefit from domestic consumption recovery [4]. Group 3: Valuation Perspectives - Valuation assessments are subjective, varying significantly among fund managers based on their market outlook and investment philosophy [5]. - The rise of technology narratives is influencing stock market valuations, contributing to the more aggressive strategies adopted by QDII funds [6]. - The emergence of Chinese tech companies as new growth engines is creating diverse and sustainable investment opportunities, particularly in sectors like AI and consumer demand [7]. Group 4: Market Dynamics - The recovery of the Hang Seng Index's dynamic P/E ratio to historical averages suggests that further valuation increases will depend on corporate earnings and macroeconomic recovery [8]. - There is a notable shift of funds from higher-valued markets in the U.S. and India to lower-valued markets in China and Europe, providing additional capital to the Hong Kong tech sector [7].

Core Viewpoint - The unprecedented increase in tariffs on Chinese imports to the U.S. is causing significant disruption in the cross-border e-commerce industry, forcing many Chinese sellers on platforms like Amazon to either raise prices or exit the U.S. market entirely [1][2]. Group 1: Impact on Chinese Sellers - The president of the Shenzhen Cross-Border E-Commerce Association stated that the tariff situation is not merely a tax issue but a severe blow to the entire business model, making it extremely difficult for companies to operate in the U.S. market [1]. - A survey of five Amazon sellers in Shenzhen revealed that three are considering raising export prices, while two plan to withdraw from the U.S. market [1]. - Approximately half of the sellers on the Amazon platform are from China, with over 100,000 registered Amazon businesses in Shenzhen alone, generating total annual revenue of $35.3 billion [1]. Group 2: Shift in Market Strategy - Sellers are facing a dilemma as global markets struggle to absorb the large production capacity previously directed at the U.S., while intense price competition is eroding profit margins [2]. - A seller specializing in bags and Bluetooth speakers has raised U.S. market prices by 30% and is shifting resources to markets in Europe, Canada, and Mexico [2]. - Another experienced seller predicts significant price increases as existing inventory runs out, with production costs for certain products rising from $3 to $7 due to tariffs, necessitating a price hike of at least 20% to maintain profit margins [2]. Group 3: Broader Implications - The president of the association warned that the tariff-induced shockwave could lead to deeper social impacts, as the global supply chain undergoes significant restructuring [2].