Nanfang Fund's Liu Yicheng: Adhering to Long-termism, Using Multiple Asset Strategies to Deal with Market Changes.

Liu Yicheng, fund manager of Southern Fund, expressed optimism about the capital market in 2026. He stated that the main logic supporting the market's positive outlook is based on three core variables: Firstly, the global loose credit cycle is expected to continue, with the Federal Reserve and major central banks expected to maintain a loose liquidity environment, providing support for risk assets. Secondly, the trend of global asset allocation towards China is ongoing, with foreign investment still underweighted in Chinese assets. As China's leading edge in technology and other fields solidifies, the inflow of incremental funds will become a driving force for valuation repair. Thirdly, the long-term trend of domestic residents increasing their allocation to equity assets is emerging. With multiple factors such as "asset scarcity", policy incentives, and attractive valuations at play, funds are expected to continue to flow into the stock market.