SHOWS: HONG KONG, CHINA (MAY 8, 2014) (REUTERS - ACCESS ALL)

PATRICK LEGLAND, GLOBAL HEAD OF RESEARCH, SOCIETE GENERALE

1. (QUESTION GRAPHIC)

'What are your views on China's economic slowdown?'

2. PATRICK LEGLAND SAYING:

'Our core scenario is that China will continue to slow down. To make it very, very simple, in the last ten years you know they have had a lot of reinvestments. These reinvestments have to be reduced, they have to address shadow banking, credit bubble, which means that frankly we keep and stick to a relatively pessimistic stance for Chinese growth in the next few quarters.'

3. (QUESTION GRAPHIC)

'Some say an above seven percent GDP target is the red line for policy makers. Can we expect more fiscal and monetary policy measures?'

4. PATRICK LEGLAND SAYING:

'Absolutely, in fact you're right. What is very, very interesting is that if I may say the worst, it will be on GDP growth. The most likely they will have do something in terms of stimulus. And this would be extremely positive for Chinese markets, risky assets and equity markets as well.'

5. (QUESTION GRAPHIC)

'Within Chinese assets, you like the valuations in Shanghai. Tell us your strategy for that market.'

6. PATRICK LEGLAND SAYING:

'You know what is interesting is that on any metrics this market has been underperforming the last few years. Whatever you take from a yield standpoint, from an interest rate stand point, from a discount cash flow stand point, this market is cheap. Now, next question mark is it because it is cheap that we might have a rebound? I think we are not so far from this.'

7. (QUESTION GRAPHIC)

'What are your views on the Hang Seng? Are Chinese stocks investable right now?'

8. PATRICK LEGLAND SAYING:

'You know, to be frank it remains quite limited. But where it's a kind of a catch-22 situation, the Chinese government needs to obviously open far more their assets than what they are doing right now. And they need also to give a kind of carrot to investors and at this stage which we have had only the stick with a downside in the market. But let's be patient, ultimately this market should recover.'

9. (QUESTION GRAPHIC)

'Which sectors are you not buying in China?'

10. PATRICK LEGLAND SAYING:

'You know to be frank, you will not be surprised, but it's on one side property and on the other side commodities.'