The attractiveness of China's stock market increases, with a clear focus on the technology mainline

Recently, several public fund institutions, including Fidelity Fund, China Merchants Fund, and Morgan Asset Management, have successively held investment strategy meetings, gathering investment research elites to decode market opportunities for 2026. Although perspectives vary, there is a significant consensus and clear connections among the institutions regarding macroeconomic outlook, judgments on the A-share market, and specific sector layouts.

Looking ahead to the macroeconomy in 2026, many public fund institutions believe that the quality of development will be placed in a more prominent position.

At the Fidelity Fund strategy meeting, Li Chao, chief economist at Zheshang Securities, stated that the main theme of development in 2026 can be summarized as “consolidating foundations and enhancing quality,” emphasizing development quality and prioritizing the cultivation of new development momentum and accelerating high-level technological independence and self-reliance.

Zhang Yige, assistant general manager and bond investment director at Morgan Asset Management (China), believes that expectations for RMB appreciation and the transition from old to new momentum are the two core variables at the macro level. Hou Jie, director of the mixed asset investment department at Morgan Asset Management (China), stated that as China’s economic growth model shifts from production and manufacturing to consumption-driven, the consumption structure is transitioning from material consumption to spiritual consumption, and the correlation between investment logic and the macroeconomy will significantly increase.

Regarding the A-share market, many public fund institutions generally hold a positive attitude, believing that 2026 is likely to see a resonance of profits and valuations.

Du Meng, vice general manager and investment director at Morgan Asset Management (China), stated that quality companies in the A-share market are expected to experience a “Davis double play” in profits and valuations. As the certainty and resilience of Chinese assets continue to emerge, the value reassessment of A-shares is expected to deepen further.

From a global perspective, Zhang Shengxian, manager of the Fidelity CSI Coal Fund, told the Securities Daily reporter: “With the expectation of RMB exchange rate appreciation increasing, coupled with the relatively low global valuation of A-shares, the Chinese stock market has significant attractiveness.”

Research conducted at the 13th Morgan Asset Management China Investment Summit showed that regarding investment preferences for major asset classes over the next 6 to 12 months, 67% of respondents listed equity assets as their top choice; in terms of the global markets they are most optimistic about for 2026, China significantly leads with an 86% attention rate.

In terms of specific investment directions, the technology sector, represented by artificial intelligence, has become a consensus among public fund institutions, while cyclical sectors and the “going abroad” theme are also receiving considerable attention.

Zhang Shengxian believes that the AI (artificial intelligence) industry trend remains one of the main lines for 2026. Although valuations are at high levels, the industrial trend has not ended. Since the beginning of this year, price increases have become a core clue in the A-share market, driving cyclical resource products to strengthen. Based on historical experience, in the upward phase of the PPI (Producer Price Index), cyclical sectors such as chemicals, steel, and non-ferrous metals are expected to benefit first, and the market style may shift towards a dual-driven model of “AI + price increase, technology + cycle.”

Du Meng stated that he is focusing on the technology sector represented by artificial intelligence, including hardware and software opportunities in robotics, intelligent driving, and competitively global Chinese manufacturing companies, as these companies are expected to release growth momentum through “going abroad” and new demand.

Sun Bin, manager of the Fidelity CSI 300 Fundamental Selected Fund, lists “going abroad” as one of the certain directions, particularly optimistic about the global expansion of the automotive industry.

In terms of investment tools and strategies, the vigorous development of ETFs (exchange-traded funds) and their allocation value have been repeatedly mentioned. Fang Junyi, fund manager of the index product investment business department at China Merchants Fund, told the Securities Daily reporter that the total scale of domestic ETFs has surpassed 6 trillion yuan, with accelerated growth in scale. Equity ETFs have become an important choice for investors to participate in the market or engage in event-driven trading. The characteristics of ETF products are clear, simple, and transparent, and they are conveniently traded, especially in high-volatility markets like technology, making them a convenient allocation tool.

Regarding how to utilize ETFs for allocation, Fang Junyi stated that in the direction of technological growth, one can focus on three themes: new production capacity, domestic substitution, and policy support, constructing portfolios through related ETFs. On the defensive side of investment strategies, low-volatility and stable portfolios can be built through dividend ETFs. Furthermore, one can optimize the overall investment portfolio’s return-risk characteristics by incorporating different asset classes such as bonds, overseas assets, and commodities to construct a diversified portfolio of “stocks + bonds + overseas + commodities.”