20 June 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
The latest Greater China Equities Outlook highlights how the Greater China equity investment team navigates global uncertainties and invests through the lens of our GCMV (growth, cash generation, management, valuation) investment framework via the “4A” positioning: Acceleration, Abroad, Advancement, and Automation.
Despite macro headwinds and geopolitical tensions, Greater China continues to demonstrate structural resilience and innovation-led growth. Our investment team remains focused on identifying opportunities aligned with long-term trends:
Acceleration: We favour niche and service-oriented consumption leaders that are outperforming amid macro softness, such as specialty F&B, cosmetics, and tourism.
Abroad: Mainland China’s healthcare sector continues to globalise, with strong out-licensing momentum and novel drug modalities gaining traction.
Advancement: AI adoption is accelerating, driven by breakthroughs like DeepSeek. We see strong potential opportunities in cloud service providers and next generation of AI supply chain across Greater China.
Automation: Mainland China’s high-tech manufacturing and robotics sectors are thriving, supported by a robust domestic supply chain.
In Taiwan, we see renewed momentum in AI semiconductors, smartphone components, and network infrastructure, supported by global AI demand.
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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