In June, Jian Shi Cortesi said she sold Chinese Internet companies as the sector\u2019s valuation had reflected earnings-growth optimism. The MSCI China Information Technology Index had already started its descent, and has lost 34 percent since its January peak. Now, she has some new calls. With Asian stocks trading at a near-record discount to their U.S. peers, the portfolio manager at GAM Investments said the time is ripe for selling some defensive stocks and going fishing for opportunities. Her firm oversees about $146 billion in assets globally. In her hunt for good deals, she\u2019s looking at three areas: China Internet Those shares have tanked on policy headwinds, creating an opportunity to buy. While it remains uncertain how the new rules will evolve, the regulation is meant to introduce more order in the sector to prevent things from getting more \u201cmessy,\u201d according to Cortesi. \u201cI\u2019m quite sure the Chinese government doesn\u2019t want to hurt the Internet industry or make it grow slower or kill it - I don\u2019t think that\u2019s the intention,\u201d she said. \u201cInternet remains the most interesting place to invest in China.\u201d Also Read| EU ready to hand Theresa May Brexit deal after late spat with Spain China Autos The Chinese car industry is still growing as demand is fundamentally there, in Cortesi\u2019s view. Auto sales this year were depressed as some customers rushed to buy cars in 2017 due to tax breaks, while others delayed big-ticket purchases because of the trade dispute. Sentiment may normalize in 2019 as the government is likely to roll out more support for the industry, she said. \u201cWe saw some auto stocks down over 50 percent because of the shift in sentiment,\u201d she said. \u201cSome of them are trading at very attractive valuations. All these bad news will be behind these companies when we roll over to next year.\u201d Korea Cosmetics Because of tensions between China and South Korea, fewer Chinese tourists have visited the neighboring country - but that\u2019s only temporary, according to Cortesi. \u201cThe fundamental demand from Chinese consumers and Chinese women to spend more money on cosmetics has not changed,\u201d she said. \u201cAnd some Korean cosmetic stocks have also come down dramatically.\u201d In her base-case assumption, Cortesi expects the MSCI Asia index excluding Japan to rally about 20 percent next year, mainly thanks to a recovery in valuations. Offshore Chinese stocks are likely to rise a bit more, if the trade tension with the U.S. doesn\u2019t deteriorate. \u201cIt\u2019s always the best time to buy China or Asia when everything looks bad,\u201d Cortesi said. \u201cIf we see any progress in trade negotiations next year, that will make investors go from very concerned to less concerned, and that\u2019s enough for the multiples to expand, especially given the price level that a lot of companies are trading at.\u201d Here is what other market pros are betting on: UBP Asset Goes Treasure Hunting in Asia as Stock Markets Crash Goldman Says It\u2019s Time for Equity Investors to Boost Their Cash BlackRock Doesn\u2019t Expect Significant Growth Slowdown in China UBS Says Emerging-Market Stocks Should Return Up to 8% in 2019 Korean Fund Sees Opportunity in Tech Stocks Hit by Trade War (1) A Santa Rally and Stellar 2019: Allianz GI\u2019s Asia Stocks Calls Aberdeen\u2019s Love for Risk Assets Unchanged on Valuation, Growth.