31 December 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



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 Chinese Mainland and Taiwan are well-positioned to drive high-quality growth to the next level.
Summary:
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.