Greater China Equities: Powering up on technology, localisation and globalisation

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.

1^st A – Acceleration: Consumption may further improve on mainland China’s pro-growth policies

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)

2^nd A – Aboard: Leading mainland Chinese companies are going abroad

We prefer leading companies with strong innovative capabilities and global footprints in the healthcare, and industrial and EV sectors.

3^rd A – Advancement: Advancement in tech in mainland China continues with new development e.g. Edge AI, VR glasses

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.

4^th A – Automation: Automation for manufacturing of high value-added products such as EVs, IT products

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.

Download the full version

2026 Asia Equities ex-Japan Outlook: Positive catalysts drive continued momentum

Asia equities ex-Japan delivered strong performance in 2025. Looking ahead to 2026, June Chua, Head of Asia Equities, outlines in this investment note why she believes the outlook for the asset class remains constructive, underpinned by numerous positive catalysts: a softer US dollar, the US Federal Reserve’s rate-cut trajectory, supportive earnings and valuations, and differentiated growth drivers across geographies.

Read more
Greater China Equities: 2H 2025 Outlook

The latest Greater China Equities Outlook highlights how our investment team navigates global uncertainties and invests through the lens of our investment framework via the “4A” positioning: Acceleration, Abroad, Advancement, and Automation.

Read more
Takeaways from China’s NPC Meeting & upcoming drivers for Greater China equity market

In addition to the recent breakthroughs in AI and humanoid robot development, we observe other positive catalysts that further support the region’s market.

Read more

See all

Overweight utilities – stability meets growth in a rate-cutting cycle

Heading into 2026, preferred securities remain an attractive asset class supported by strong fundamentals and favourable macro trends. In particular, utilities preferreds stand out as a core allocation, benefiting from structural growth drivers, such as artificial intelligence (AI)-driven energy demand, easing monetary policy, and their defensive characteristics amid potential market uncertainties.

read more
2026 Outlook Series: Greater China Equities

Greater China equity markets registered a strong equity rally in 2025 to date, driven by technology breakthroughs, demand for localisation, go-global demand, and upward earnings growth revisions. We reiterate a positive view on Greater China equity markets going into 2026 as we believe Mainland and Taiwan are well-positioned to drive high-quality growth to the next level.

read more
2026 Asia Equities ex-Japan Outlook: Positive catalysts drive continued momentum

Asia equities ex-Japan delivered strong performance in 2025. Looking ahead to 2026, June Chua, Head of Asia Equities, outlines in this investment note why she believes the outlook for the asset class remains constructive, underpinned by numerous positive catalysts: a softer US dollar, the US Federal Reserve’s rate-cut trajectory, supportive earnings and valuations, and differentiated growth drivers across geographies.

read more

see all

ABOUT US

FUNDS

RESOURCES

CONTACT US

Contact us

Disclaimer Privacy Policy Terms of Use Anti-Corruption & Whistle Blowing Board Charter

The above information has not been reviewed by the Securities Commission Malaysia (“SC”) and is subject to the relevant warning, disclaimer, qualification or terms and conditions stated herein. Investors are advised to read and understand the contents of the Master Prospectus dated 3 January 2023 and its First Supplemental Master Prospectus dated 20 October 2023; Master Prospectus dated 15 May 2023 and its First Supplemental Master Prospectus dated 20 October 2023 and its Second Supplemental Master Prospectus dated 12 February 2025 and its Third Supplemental Master Prospectus dated 3 June 2025 and its Fourth Supplemental Master Prospectus dated 30 June 2025; Prospectus dated 18 August 2022 and its First Supplemental Prospectus dated 30 December 2022; Prospectus dated 3 October 2023; Prospectus dated 19 June 2024 and its First Supplemental Prospectus dated 18 February 2025; Prospectus dated 28 June 2024 and its First Supplemental Prospectus dated 6 August 2025 and its Second Supplemental Prospectus dated 26 November 2025; Prospectus dated 15 July 2025; Information Memorandum dated 11 February 2020 and its First Supplemental Information Memorandum dated 31 January 2022 and its Second Supplemental Information Memorandum dated 10 August 2023 and its Third Supplemental Information Memorandum dated 2 January 2024; Master Information Memorandum dated 26 November 2019; Information Memorandum dated 11 February 2020 and its First Supplemental Information Memorandum dated 13 September 2021 and its Second Supplemental Information Memorandum dated 31 January 2022 and its Third Supplemental Information Memorandum dated 21 August 2023 and its Fourth Supplemental Information Memorandum dated 2 January 2024 and its Fifth Supplemental Information Memorandum dated 30 May 2025; Information Memorandum dated 2 May 2023 and its First Supplemental Information Memorandum dated 2 January 2024 and its Second Supplemental Information Memorandum dated 20 December 2024; Information Memorandum dated 24 October 2024; Disclosure Document dated 14 February 2022 and its First Supplemental Disclosure Document dated 30 August 2023 for Manulife PRS NESTEGG Series; Disclosure Document dated 14 February 2022 and its First Supplemental Disclosure Document dated 30 August 2023 for Manulife Shariah PRS NESTEGG Series and all the respective Product Highlights Sheet(s) (collectively, the “Offering Documents”), obtainable at our offices or website, before investing. The Offering Documents have been registered with the SC, however the registration with the SC does not amount to nor indicate that the SC has recommended or endorsed the product. There are risks involved with investing in unit trust funds; wholesale funds and/or private retirement schemes. Some of these risks associated with investments in unit trust funds; wholesale funds and/or private retirement schemes are currency risk, country risk, credit and default risk, concentration risk, stock specific risk, reclassification of Shariah status risk, fund manager/ investment manager/target fund manager risk, liquidity risk and interest rate risk. For further details on the risk profile of all the funds, please refer to the Risk Factors section in the Offering Documents. The price of units and income distribution may go down as well as up. Investors should compare and consider the fees, charges and costs involved. Investors are advised to conduct own risk assessment and consult the professional advisers if in doubt on the action to be taken. Past performances are not an indication of future performances. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from the pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in the Fund’s denominated currency will remain unchanged after the distribution of the additional units. You are advised not to solely rely upon the ratings or rankings disclosed herein in making an investment decision. The ratings or rankings disclosed herein are current; the same may change in the future.

The Manager, Manulife Investment Management (M) Berhad Registration No: 200801033087 (834424-U) (hereinafter referred to as “Manulife IM (Malaysia)”) is a wholly owned subsidiary of Manulife Holdings Berhad and holds a Capital Markets Services License for fund management, dealing in securities restricted to unit trusts, dealing in private retirement schemes and financial planning under the Capital Markets and Services Act 2007. Manulife IM (Malaysia) operates under the brand name of Manulife Investment Management which is the global wealth and asset management segment of Manulife Financial Corporation.