Morgan Asset Management: The overall macro environment in 2026 is favorable for stock market performance.

Recently, Morgan Asset Management held the first investment strategy meeting of the new year in Guangzhou, conducting in-depth discussions on the macroeconomic situation of the global and Chinese markets in 2026, major asset allocation, and A-share investment opportunities. Zhu Chaoping, senior global market strategist at Morgan Asset Management China, stated that looking ahead to 2026, global economic growth may slow down, with interest rates gradually declining and the tightening pace of monetary policies in mature markets expected to slow down as well. The low interest rate environment is expected to continue to support the economy. For China, with reduced external uncertainties and a friendly domestic policy environment expected to continue, combined with the bottoming out and rebounding of corporate profit cycles, as well as constraints on capacity expansion in some industries due to the "anti-internal competition" policy, the process of industrial enterprise profit repair is expected to accelerate. In terms of asset allocation, Zhu Chaoping mentioned that the improvement in corporate profits is expected to support the performance of global equity markets, but in the background of high valuations and geopolitical uncertainties, investors need to appropriately lower their return expectations and diversify risks through diversified allocation. Specifically in terms of regions and sectors, the US technology sector may continue to benefit from the development of artificial intelligence, and the market style may spread to cyclical and value sectors; European stock markets have structural opportunities in sectors such as finance and defense; the Northeast Asian market is expected to benefit from the growth in demand for AI hardware, with the value of Asian high dividend assets highlighted in asset allocation. The attractiveness of the A-share market is expected to increase further, with recommendations to focus on high prosperity core assets, outbound-related tracks, and sectors with a favorable supply-demand structure. In terms of bonds, the advantage of overseas bond coupons remains obvious, and in the background of a gradual slowdown in interest rate cuts, it is advisable to focus on short-term mature market government bonds.