Zhi Tong Cai Jing·2025-11-10 22:36Core Viewpoint - Guotai Junan has established an "all-weather" asset allocation framework consisting of Strategic Asset Allocation (SAA), Tactical Asset Allocation (TAA), and Major Event Review Adjustments to guide investment decisions [1][2] Asset Allocation Framework - The framework aims to diversify macro risks through SAA, setting a long-term allocation benchmark for portfolio stability [2] - TAA employs quantitative methods to identify assets with superior short-term risk-return characteristics, allowing for moderate adjustments in portfolio weights to enhance returns [2] - Major events are subjectively reviewed to calibrate and supplement the quantitative results [2] Equity Market Outlook - The firm holds an optimistic view on Chinese equities, recommending a 45% allocation in November, with overweight positions in A-shares (8.50%) and Hong Kong stocks (8.50%), while maintaining benchmark positions in US (15.00%), European (5.00%), and Japanese stocks (5.00%), and underweight in Indian stocks (3.00%) [3] - The improvement in China-US bilateral relations is seen as beneficial for Chinese assets, supported by stable domestic financial conditions and a favorable fiscal and monetary environment [3] - The demand for quality assets in China continues to surge, driven by a solid development logic [3] Bond Market Outlook - The firm maintains a neutral stance on bonds, suggesting a 45% allocation in October, with benchmark positions in long-term (10.00%) and short-term (12.50%) government bonds, as well as US Treasury bonds [4] - The bond market is supported by an imbalance in credit supply and demand, along with stable liquidity, which enhances the cost-effectiveness of bond allocations [4] - Geopolitical uncertainties and rising risk aversion are expected to lead to wide fluctuations in domestic interest rates [4] Commodity Market Outlook - The firm holds a neutral to slightly optimistic view on commodities, recommending a 10% allocation in October, with benchmark positions in gold (5.00%), underweight in oil (1.25%), and overweight in industrial commodities (3.75%) [4] - Industrial metals, particularly copper, are anticipated to experience performance opportunities due to supply-demand imbalances driven by construction, power grids, and electric vehicles [4] - The rising complexity and cost of copper development may reduce investment willingness, potentially pushing copper prices higher [4]