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.
2026 Global healthcare equities outlook: Innovation supports healthcare’s long term case
Global healthcare equities showed resilience amid 2025 volatility. The defensive characteristics, coupled with remarkable therapeutic innovations in the biopharmaceutical, MedTech, and tools sub-segments of this sector, will continue to be rewarded with capital appreciation over a full market cycle. Current valuations relative to the broader market make for an attractive entry point today, and periods like this tend to lead to outperformance for healthcare stocks over the long term.
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.
2026 Mid-year outlook: Global Semiconductor
The semiconductor sector remains a key enabler of the global economy, underpinning artificial intelligence (AI), cloud computing, and electrification. As highlighted in our earlier insights, it represents a broad ecosystem supported by structural demand and real infrastructure investment. Following strong year-to-date performance, we see growing conviction that momentum can extend into the second half of 2026 and into 2027, driven by earnings strength, sustained capital investment, and early-stage AI adoption.
2026 Mid-Year Outlook Series: GEDI
Against a highly uncertain backdrop in the first half of 2026, Manulife’s Global Equity Diversified Income (GEDI) Fund (‘the Fund’) posted resilient performance with relatively lower volatility. This result was driven by the Fund’s four investment pillars, which favour an income-centric approach, coupled with global diversification across growth, value, and income equities. In this 2026 Mid-Year Outlook, Paul Kalogirou, Head of Client Portfolio Management, Asia & Global Multi-Asset Solutions, explains how the Fund’s unique structure allows for consistent income generation and potential upside across the market cycle, while also identifying key opportunities and risks for the second half of the year.
2026 Mid-year Outlook Series: Diversified Real Assets
Global supply chains are resetting under deglobalisation and geopolitics, shifting from global efficiency to more expensive regional resilience, embedding higher structural costs. At the same time, artificial intelligence (AI) is emerging as a new demand driver, accelerating investment in power, infrastructure, and materials. Against this backdrop of structurally higher inflation and dual demand pressures – from both supply-chain rewiring and AI capital expenditure – we believe real assets may play an increasingly important role in portfolios, offering exposure to long-term secular growth and AI trends.
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