After better than expected economic data kicking off the year and a blistering start for the equity market,

where does China go from here? I'm Allison Nathan and this is Goldman Sachs exchanges. changes.

The world's second largest economy has had a difficult couple of years,

plagued by the ongoing

property crisis and disappointing economic growth but more encouraging economic

data in recent months and a sharp rally in Chinese equities have begun to catch the eye of investors.

Joining me to discuss how the economy and capital markets in China are evolving are my

colleagues in Goldman Sachs research, Wei Shan, Chief China Economist, and Kindra Lau,

Chief China Equity Strategist, who are both based in Hong Kong.

Hui, Kindra, welcome back to the program.

Good to be on.

That's for having us.

Kinder, I'm going to come to you first because obviously we had seen Chinese

equities underperforming for a pretty long period of time but in the last few

months we have seen them rallying sharply so talk to us about what's driving the rebound.

Well thanks Anderson let me try to put things in the context now the China

offshore equity market i.e. Chinese companies listed in Hong Kong and the

US, has started to perform well after the Chinese New Year, running almost 30% since the

trough in late January,

and has been the best performing equity

in the past three months.

And at the same time, the domestic Asia market

...