I would also consider losing the watering tray. Judging by the looks of the soil, water retention should be the last of your worries. Check to make sure the soil dries slightly before your next watering. Although chinese elms have been extremely forgiving in my experience, you can kill them if you leave their feet too wet at all times. Lastly, I would suggest keeping this tree outdoors. It may scrape by for a year or two on a windowsill but without the proper dormancy and growth periods trees like this are meant to experience outdoors, they will die.