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.
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.
3 April 2025
Kai Kong Chay, Senior Portfolio Manager, Greater China Equities
Wenlin Li, Senior Portfolio Manager, Greater China Equities
As we progress through 2025, Greater China equities have demonstrated strong performance, particularly Hong Kong equities, which have been supported by southbound inflows. In addition to the recent breakthroughs in AI and humanoid robot development, we observe other positive catalysts that further support the region’s market.
Greater China equities showed resilience year-to-date in 2025, with the Hang Seng Index rising by 22.1%, the Hang Seng China Enterprises Index (HSCEI) gaining 23.3%, and the MSCI China Index increasing by 20.8%. (see table below)1.
2025 year-to-date performance of Greater China equity indices1
| Indices | Total returns in USD (%) |
| Hang Seng TECH Index | +35.82 |
| Hang Seng China Enterprises Index | +23.33 |
| Hang Seng Index | +22.21 |
| MSCI China Index | +20.83 |
| MSCI Zhong Hua Index | +19.48 |
| Shanghai Stock Exchange Composite Index | +2.02 |
Besides the DeepSeek AI breakthrough (which prompts acceleration of AI adoption in mainland China) and humanoid robot development, there are other positive catalysts as we move into the rest of 2025.
(1) Positive policy signals
On 24 February, Mr Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), published an article in the Journal of New Industrialization highlighting mainland China’s development priorities, particularly in fostering technologically innovative high-end manufacturing and new-industry companies.
(2) Positive messages from China’s National People's Congress (NPC) meeting
The key messages from work report from China’s NPC meeting are largely in-line with our view. The targets span across various areas, which are holistic and help navigate macro uncertainties and boost domestic growth. Domestic demand is key for 2025.
Key targets and priorities announced in NPC meeting2
| Areas | Details |
| Monetary and fiscal policy | • Budget deficit ratio set at around 4% of GDP • RMB 500 billion of new special sovereign bonds for big banks • RMB 4.4 trillion of new special local government bonds in 2025 • RMB 1.3 trillion of ultra-long special sovereign bonds • May cut required reserve ratio (RRR) and interest rates when time is appropriate • To coordinate reforms of fiscal and tax systems |
| Economy | • China vows to make domestic demand the main economic driver in 2025 • Gross domestic product (GDP) growth target at around 5% • CPI growth target at ~2% • Target urban unemployment rate of about 5.5% in 2025 • To carry out special initiatives to boost consumption • To maintain basic stability of the RMB • Plans 7.2% increase in 2025 defense spending |
| Property | • Give local governments more autonomy in acquiring homes • To expand scope of affordable housing relending |
| Technology | • To increase funding to bio-manufacturing and quantum technology • To develop a system of open-source models for AI & 6G technology • To support extensive application of large-scale AI models |
| Energy and agriculture | • Target -3% energy use per unit of GDP for 2025 • To develop intelligent new energy cars |
| Health Care | • To refine policy for centralized medicine procurement • China subsidy for resident medical care to be raised by RMB30 per person • To support and encourage private investment • To support cross-border e-commerce, boost logistics system • To improve policies on volume-based drug procurement |
(3) Recovery pace of mainland China’s property market
Some positive data points include:
Housing inventory ratios fell significantly in recent months, driven by improving sales3
(4) Additional support for the mainland China banking sector
During the China NPC meeting, China announced RMB 500 billion of new special sovereign bonds for banks, which lends support to banks as well as a broad range of sectors, including consumer, property and industrials.
Dissecting the humanoid body4
The recent development and encouraging technological breakthrough are positive drivers for Greater China equity markets in 2025. We continue to favour technology, media, and telecommunications (TMT) and platform companies (with AI adoption acceleration, advanced manufacturing companies with go-global strategies, edge AI beneficiaries (e.g. AI smartphones and AI PCs), as well as the robotic supply chain.
• Mainland China’s southbound flows remain strong.
Turnover in both A-share and H-share markets accelerated in January and February 2025
Source: Wind, Hong Kong Stock Exchange, HSBC GR, as of 26 February 2025. February 2025 data is up to 24 February 2025.
We see positive catalysts which further support the Greater China equity markets. These include supportive policies aimed at addressing the capital-raising needs of innovative high-end manufacturing and new-industry companies, a series of domestic growth measures announced during the NPC meeting, a recovering mainland property market, and potential additional recapitalization in the mainland banking sector. As we anticipate more innovation in the humanoid robot industry and faster development in autonomous driving, we continue to favour technology, media, and telecommunications (TMT) and platform companies, advanced manufacturing companies with go-global strategies, edge AI beneficiaries, as well as the robotic supply chain.
1 Bloomberg, data as of 6 March 2025. Total returns in USD. Past performance is not indicative of future performance.
2 NPC meeting, 5 March 2025.
3 Source: GS research, 11 February 2025.
4 Morgan Stanley Research.
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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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