Persistent weak demand. Seasonal demand helped in a positive way in thepast two months, but is now working against the hope of recovery. Everyoneon the ground is telling us of persistent weak activities in property andinfrastructure construction (amid after a mild recovery in March), while homeappliance and auto demand remains lacklustre. Without material changes ofunderlying demand, softening seasonal strength would appear to be moreprevalent, a negative catalyst as we had expected. More importantly, we areconcerned that the structural change in the demand growth outlook will leadto a continued de-rating of the Chinese material sector, after several tradingcycles, when hopes of a meaningful rebound remain distant.