At the China Asset Management Stars Awards Ceremony and Private Fund High-Quality Development Forum jointly held by JIAN Finance and Huatai Securities in Beijing on January 23, 2026, the 2025 "Stars Awards" list for wealth management companies, commercial banks, pension products, and managers was grandly released. While honoring outstanding asset managers, this awards ceremony newly introduced a private fund evaluation track. The event was attended by executives from over 100 bank wealth management firms, commercial banks, and pension managers, more than 100 private funds, senior leaders from over 10 securities companies, and heads of more than 10 mainstream media outlets. One of the highlights of the forum was the 2026 Asset Allocation Roundtable Discussion, moderated by Huatai Securities Research Institute Director Zhang Jiqiang, featuring insightful dialogue from China Wealth Management Vice President Jia Zhimin, Ningbo Bank Wealth Management Vice President Wang Jun, Qingyin Wealth Management President Assistant Yao Qing, Ningbo Yinzhou Rural Commercial Bank Vice President Shen Hua, and Ping An Pension Trustee Asset Management Department General Manager Luo Qingzhong.
Regarding the topic of how to approach major asset classes and market outlook this year, I believe the two most promising areas are, first and foremost, Chinese equity assets, including A-shares and Hong Kong stocks; the other is gold. Speaking of Chinese equity assets, fundamental changes have occurred since the "September 24" policy in 2024. The rise in any asset price boils down to a simple principle: if buyers outnumber sellers, the price will inevitably increase.
Currently, we observe several key factors. First, we have witnessed strong market stabilization efforts led primarily by Huijin Company, which not only firmly supports the market bottom but also inherently reduces A-share volatility through its mere presence. A significant reduction in A-share volatility itself constitutes a major enhancement to market attractiveness.
Second, domestic households face challenges in financial asset investment. Finding financial products offering yields above 2% with good liquidity and low volatility is difficult when focusing on single products. As financial assets gradually shift from deposits to other financial products, funds will inevitably flow into the stock market, either directly or indirectly, representing a fundamental driving force.
Third, international dynamics play a crucial role. The 2025 tariff negotiations between China and the US demonstrated our manufacturing system's strength and industrial capability, leading to a significant favorable outcome. As Director Zhang Jiqiang mentioned earlier, the numerous disruptions caused by the "Western Leader" since the beginning of the year, coupled with his disruption of global order, are prompting international investors to reconsider asset reallocation. The potential return of these funds represents substantial market momentum. The recovery in Hong Kong's real estate market, as discussed, fundamentally reflects returning demand – specifically, the return of previously departed capital. This integration into the global asset allocation system represents the most significant upside potential for Chinese stock markets and equity assets.
From the perspective of listed company quality, 2025 saw clear stabilization in corporate profits, with a high probability of recovery in 2026. The banking sector, contributing significantly to A-share profits, shows promising signs of stabilizing or even expanding net interest margins as deposits mature this year. Such revenue stabilization would play a critical role in overall A-share profit recovery.
Furthermore, throughout 2025, China's manufacturing industrial system and resilience have become globally evident. A trade surplus exceeding one trillion dollars is unprecedented in human history, dwarfing even peak levels achieved by Germany and Japan, which reached only about one-third of this magnitude. This presents crucial investment clues.
Additionally, technological advancements demonstrate strength. Our open-source large language model has become the world's most downloaded, reflecting China's technological prowess.
Considering these factors – increasing buyer interest and improving fundamentals – Chinese equity assets show tremendous promise moving forward.
Regarding gold, Director Zhang Jiqiang provided clear insights, particularly emphasizing avoiding point predictions. Why avoid predicting specific price levels? From my perspective, according to the US Congressional Budget Office report, the US debt-to-revenue ratio stands at 4 times. Could US Treasury bonds face default risk? Central banks treat gold as a store of value, and their presence provides substantial underlying support. While speculative and allocation funds entering financial markets may influence short-term timing, gold remains a vital long-term tool for investors to hedge against unforeseen currency risks.
In summary, we maintain a bullish outlook on both Chinese equity assets and gold performance.
Ningbo Bank Wealth Management secured a Five-Star Award at the current JIAN Stars Awards and received a specific award for equity investment. Progressing from simple to complex strategies within the equity track, the most straightforward investment direction involves participating in the ongoing shift of Chinese household savings from deposits to financial products. Both asset management institutions and advisory services stand to gain significant institutional dividends during this transition.
Comparing this institutional dividend to the stock market reveals parallels with the insurance industry, particularly life insurance, which benefits markedly. Over the past decade, and especially since last year, systematic declines in bank deposit listed rates coupled with banks managing long-term certificate of deposit supply have created a situation where only insurance companies can offer financial products yielding above 2% with sufficient duration to ordinary households – representing a major shift.
Second, the insurance industry underwent substantial business model improvements last year, reflected in adjustments to insurers' assumed interest rates aligning with market rates. Consequently, historical issues like interest spread losses will not affect new policies issued after 2025.
Regulatory measures requiring unified reporting of insurance sales expenses have effectively curbed excessive, inefficient competition, providing strong protection for insurers' expense margins. This combination of massive market demand and improved business models revitalizes two key metrics for China's life insurance industry: insurance penetration and insurance density. Most A-share insurers listed in 2007 with grand visions, initially valued based on new business value multiples rather than current PB or embedded value multiples. A return to high liability growth stages could trigger significant valuation system transformations, creating substantial upside potential domestically.
We consistently emphasize our industrial system, supply chain advantages, and manufacturing capabilities. Whether developing new quality productive forces or competing in AI, challenges emerge differently – developed countries face power shortages while China addresses chip shortages. Our manufacturing sector actively tackles both issues. Expanding imagination to commercial aerospace reveals that SpaceX itself relies on numerous Chinese suppliers, though this remains underexplored. China's manufacturing not only enhances traditional products but also seizes opportunities across emerging sectors.
Third, regarding AI applications, a landmark event occurred last year: Meta acquired Manus, an AI Agent company founded in China, for no less than $2 billion on December 30. Its three founders, veterans of China's complete internet entrepreneurship cycle, understand customer needs and technological application, enabling effective integration to capture market opportunities. Having abandoned its original path only in October 2024 to focus on AI applications, the company launched a product by April 2025. Within six months, its annualized revenue exceeded $100 million.
China's talent advantage extends beyond AI research to AI application, leveraging internet strengths. This year, AI's impact across industries becomes increasingly visible, with changes measurable on a daily or weekly basis – representing another exciting investment opportunity. These are the three key directions I highlighted.
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