16 January 2025
Kai Kong Chay, Senior Portfolio Manager, Greater China Equities
Wenlin Li, Senior Portfolio Manager, Greater China Equities
Ben Yu, Head of Equities, Taiwan Region
In 2024, Greater China equities closed higher due to a series of stimulus measures which catalysed the underlying structural momentums and growth trends. In this 2025 outlook, the Greater China Equities team will elaborate on four reasons for more upside potential going into 2025 despite potential US tariff concerns and geopolitical headwinds, as well as investment opportunities based on the 4As positioning for Greater China equity markets.
1) New fiscal policy initiatives
2) Mainland China can navigate tariff situations via different methods
3) Mainland Chinese corporates are “valuing up”.
4) Mainland China/Hong Kong markets can re-rate with better fiscal policy execution
From a sector perspective, we believe that mainland China should benefit from the following key areas despite macro and geopolitical headwinds:
Our investment process: GCMV + catalyst
Our investment team uses the GCMV (growth, cash generation, management, valuation) + catalyst framework to conduct investment research. This framework is applied for all company analysis which helps identify companies with competitive advantage, strong financial profile, earnings catalysts, and management teams that have created value for shareholders.
4As positioning
We believe there are 4 megatrends (expressed via the 4As positioning) which present growth opportunities that the team invest in via the GCMV lens.
We favour service-oriented and niche consumption sectors, including Technology, media and telecommunications (TMT) and platform companies (e.g. food delivery, online music), education, tourism, and home appliances (e.g. smart appliances)
We prefer leading companies with strong innovative capabilities and global footprints in the healthcare, and industrial and EV sectors.
In terms of investment opportunities, we favour AI wearable devices, AI smartphone supply chain and autonomous vehicles.
For Taiwan Region, we believe the next generation of AI development continues to present many structural opportunities across foundries, the next generation of AI, data centres, and HBM, etc. in the medium-to-long term.
We prefer strong, advanced manufacturing leaders with robust research and development capabilities. These companies benefit from the domestic growth recovery while at the same time riding on overseas market strength due to strong pricing and margins in overseas markets.
Semiconductors poised for long-term growth amid AI boom
The global semiconductor industry remains strong – arguably the most robust we have seen in over three decades. This strength is supported by cutting-edge innovation, rising revenues and robust capital spending. While risks remain, the outlook for 2026 appears constructive, with demand for artificial intelligence (AI) applications showing few signs of slowing. Beyond AI, the non-AI markets could be poised for positive revisions as cyclical recovery gains traction after several years of consolidation.
2026 Outlook Series: Manulife Global Multi-Asset Diversified Income Fund
In 2026, a clearer macroeconomic outlook is expected as momentum improves following strong 2025 drivers such as AI growth, energy transition, anticipated Fed rate cuts, and wider fiscal support. While the US Federal Reserve is likely to continue easing policy, diverse income opportunities remain across global markets, extending beyond traditional government bonds to high yield assets and option writing. Within this environment, the Manulife Global Fund – Global Multi‑Asset Diversified Income Fund (GMADI) remains with a clear and heightened focus towards income generation. The Fund seeks to deliver a high and consistent distribution income while maintaining exposure to long term capital growth opportunities.
Where growth meets opportunity: Dynamic leaders and sector winners for 2026
US tech giants, semiconductor leaders, and AI-driven businesses are set for outsized gains as digital transformation accelerates. Broadening sector exposure to communication services, utilities, materials, IT, and financials – areas showing strong momentum and solid fundamentals, suggests room for further upside. We believe active strategies targeting high-quality, industry leaders with strong earnings are well-positioned as market opportunities broaden in 2026.
2026 Singapore Fixed Income Outlook: A Sanctuary for Investors in Uncertain Times
Singapore bonds posted strong performance in 2025 amid a raft of global challenges on the back of structural inflows and sovereign strength. In this 2026 Outlook, the Singapore Fixed Income team outlines the underlying fundamentals and catalysts supporting positive momentum for the asset class in the new year and why the market is increasingly seen as a sanctuary for investors in uncertain times.
2026 AP REITs Outlook: From Rate Relief to Growth Revival
After posting positive performance in 2025, Asia Pacific ex-Japan REITs (AP REITs) are set for a pivotal transition from a period of rate-driven relief to a phase of growth revival. In this 2026 Outlook, Portfolio Managers Hui Min Ng and Derrick Heng analyse how declining interest rates are opening two avenues of growth for the asset class – organic growth via interest cost savings and inorganic growth via capital recycling. Additionally, the team explains how catalysts such as favourable historic relative valuations and positive policy changes in regional exchanges enhance the attractiveness of AP REITs for investors, ending with sectors that the team favours for the new year.
2026 Outlook Series: Global Equity Diversified Income
Equity market leadership could broaden in 2026 beyond mega-cap technology, creating opportunities across sectors and regions. Global economic growth is expected to stabilize, supported by fiscal spending and easing monetary policy in key markets. Europe and select Asian economies offer attractive valuations and improving fundamentals, complementing US resilience. Value and income-focused strategies may regain prominence alongside growth, supported by quality fundamentals. The Global Equity Diversified Income strategy is positioned for diversification across geographies, sectors, and styles, aiming for income and capital appreciation.
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