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00:00WHEN IT COMES TO THE SUPPORT IN CHINA, THE MARKET DYNAMICS, IS THIS A RETURN TO THE STATE OWNED ENTERPRISE BEING UPHILL OF MARKET SUPPORT? > > DEFINITELY. THE CHINESE GOVERNMENT AND AUTHORITIES ARE USING STATE OWNED ENTERPRISES AS A TOOL TO IMPLEMENT THEIR POLICIES. THEIR MAIN GOAL OF THIS YEAR IS TO STABILIZE THE ECONOMY AND STABILIZE GROWTH. AND TO MAKE SURE THAT GROWTH DOES NOT HAVE A SPILLOVER EFFECT ON LABOR. THEY ARE USING THE STATE OWNED ENTERPRISES BOTH TO CREATE -- AS WELL AS -- CONDITIONS. HAIDI: WHAT ARE THE MAJOR RISKS? IT DOES SEEM TO BE WE ARE CLEARLY NOT AT THE END OF THE CONSOLIDATION IN THE PROPERTIES SECTOR. ARE THERE OPPORTUNITIES WHERE YOU THINK THERE IS BETTER SHIELDED AREAS AND SEGMENTS FROM RISK? > > YES. PROPERTY CONTINUES TO BE A BIG DRIVER OF GDP GROWTH IN CHINA. THE GOVERNMENT IS TRYING TO PROP UP THAT SECTOR. HAVING SAID THAT, THERE ARE LOWER RISK OPPORTUNITIES. A TEAM WE HAVE BEEN VERY BIG ON IS SUSTAINABILITY. WITHIN SUSTAINABILITY, LOOKING BEYOND THE OBVIOUS, FACTORY STOCKS AND STOLE -- SOLAR STOCKS, BUT STOCKS THEY ARE LOOKING FOR ARE STOCKS THAT TRADITIONALLY ARE NOT VERY GREEN BUT ARE NOW GOING THROUGH A CHANGE. COAL COMPANIES NOW MOVING TO -- HAS BEEN A REALLY STRONG THING FOR US IN OUR PORTFOLIOS. HAIDI: HOW MUCH DOES THAT TRANSITION TO GREEN ENERGY WORSEN INFLATIONARY PRESSURES AROUND THE WORLD? > > YOU ARE RIGHT, IT IS WORSENING INFLATIONARY PRESSURES NOT JUST IN CHINA, BUT EVERYWHERE. AS THE COST OF CARBON GOES UP AND THERE IS LIMITED SUPPLY OF ALTERNATIVES. INVESTING IN THESE STOCKS IS A WAY TO OFFSET THAT TRADE, OR HEDGE INFLATION BECAUSE -- TEND TO DO WELL DESPITE THE INFLATIONARY ENVIRONMENT. LIKE YOU POINTED OUT PRIOR, POWELL ' S SPEECH HAS GONE A LONG WAY TO ENSURE THE MARKET THAT INFLATION IS NOT GOING TO RUN AWAY AND THE U.S. FED WILL DO WHATEVER IT CAN TO CONTROL THAT. HAIDI: WATCHING THE UPCOMING IPO IN INDIA, THE BIGGEST ON RECORD, IF I BELIEVE, LIFE INSURANCE SEEMS TO BE EXUBERANT. WE HAVE SEEN UPS AND DOWNS FROM THE INDIAN MARKET. DO YOU SEE OPPORTUNITIES THERE? > > OF COURSE. INDIA IS ONE OF THE FEW MARKETS THAT HAS HAD TWO STRONG YEARS OF EQUITY RETURN AND EARNINGS GROWTH LOOKS EXCEEDINGLY STRONG. BUT, IT IS EXPENSIVE, TRADING AT -- IT TRADES AT A 60% -- TO ASIA AND JAPAN. A LOT OF THAT GROWTH IS PRICED IN ALREADY. THE SECOND ISSUE IS THAT INDIA HAS HIDE DATA RISK ON MARKETS. AS THE FED STARTS TO HIKE RATES AND RISK SENTIMENTS ARE OFF, INDIA WILL SLOWDOWN WHICH COULD LEAD TO -- THERE ' S LOTS OF REASONS TO BE CAUTIOUS. HAIDI: WHAT IS THE POLICY OUTLOOK FOR INDIA? WHEN IT COMES TO CHINA, WE ARE EXPECTING A DIVERGENCE FROM THE FED WITH THE PBOC WHERE SOME SAY YOU COULD ACTUALLY PLAY TO YOUR ADVANTAGE. IS THERE ANYTHING SIMILAR HAPPENING IN INDIA? > > THE INDIAN -- IN THIS REGION -- [INDISCERNIBLE] THE PRIVATE SECTOR DOES NOT HAVE THE CONFIDENCE IN THE LONG TERM RECOVERY AND THE GOVERNMENT CANNOT AFFORD MORE FISCAL SPENDING JUST BECAUSE THE GOVERNMENT BALANCE SHEET IS VERY POOR. INTEREST RATES CONTINUE TO BE ON AN UPTREND. INDIA DOESN ' T HAVE THE STRUCTURAL WEALTH TO FIX THE ECONOMY, DOESN ' T BODE WELL.

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Nipun Capital's Malik on Asia Markets Outlook

Pooja Malik, Partner at Nipun Capital, discusses her outlook for Asia markets and investment strategy. She speaks with Shery Ahn and Haidi Stroud-Watts on "Bloomberg Daybreak: Asia". (Source: Bloomberg)

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