Economic Outlook - The macroeconomic WEI index has declined to 4.62% as of November 23, down from 5.42% the previous week, indicating a downward trend since late September [8][9] - Retail sales of passenger cars have seen a slight narrowing in decline, with a year-on-year decrease of 7% as of November 23, compared to 9% previously [2][13] - The real estate market continues to struggle, with residential sales dropping by 35% year-on-year in 67 cities as of November 29 [3][13] Trade and Exports - Port container throughput has rebounded significantly, with a 5.4% increase week-on-week as of November 23, and a year-on-year increase of 10% [22][23] - New export orders in China's manufacturing PMI rose to 47.6%, reflecting a notable increase of 1.7 percentage points from the previous month [24] Prices and Commodities - Prices of precious metals and agricultural products have risen, with COMEX gold reaching $4223.9 per ounce, up 3.4%, and LME copper at $10,985 per ton, up 2.7% [2][40] - Domestic agricultural prices have generally increased, with vegetable prices up 1.9% and egg prices up 1.2%, while pork prices fell by 0.4% [41][42] Infrastructure and Production - Infrastructure data remains weak, with cement dispatch rates at 33.4%, unchanged from the previous week and down from 36.5% year-on-year [15] - The asphalt plant operating rate has increased to 28%, up 3 percentage points from the previous week, but still down 4.7 percentage points year-on-year [15] Interest Rates and Debt - Interest rates remain relatively stable, with 1-year, 5-year, and 10-year government bond yields reported at 1.4017%, 1.6183%, and 1.8412%, respectively [55] - The issuance of special bonds to support infrastructure projects has been significant, with plans for 1.5 trillion yuan in long-term bonds to support nearly 3,000 projects [45]

Core Insights - Morgan Asset Management has released its "2026 Long-Term Capital Market Assumptions" report, marking the 30th anniversary of this influential analysis that provides risk-return outlooks for various asset classes over the next 10 to 15 years [1][2] Group 1: Report Overview - The report has evolved from a simple asset allocation spreadsheet to a critical analysis relied upon by the global financial industry, incorporating insights from over a hundred seasoned portfolio managers, research analysts, and strategists [1] - It covers more than 200 assets across 20 currencies, offering strategic asset allocation insights to investors navigating volatile financial markets [1] Group 2: Investment Strategy - The report suggests that a 60/40 portfolio (60% MSCI All Country World Index + 40% US Aggregate Bond Index) is projected to yield an attractive annual return of 6.4% over the next 10 to 15 years, despite a year of rising global stock markets [2] - The inclusion of alternative assets in investment portfolios is expected to enhance potential returns and reduce volatility, with a simulated "60/40+" portfolio yielding an expected return of 6.9% when 30% is allocated to diversified alternative assets [3] Group 3: Market Trends and Predictions - The report highlights the impact of economic nationalism, fiscal activism, and technological innovation on future economic growth, inflation, and asset prices [3] - The long-term outlook for Chinese A-shares is positive, with an expected annualized return of 7.7% over the next 10-15 years, driven by resilient economic growth, stronger shareholder return policies, and potential valuation improvements [3]

Core Insights - Morgan Asset Management has released its "2026 Long-Term Capital Market Assumptions" report, marking the 30th consecutive year of publication, maintaining a steady outlook for asset returns despite global market volatility [1] - The report forecasts a 7.7% annualized return for Chinese A-shares in USD over the next 10-15 years, driven by economic resilience, stronger shareholder return policies, and potential valuation upside [1] Group 1: Long-Term Return Projections - The long-term return outlook for Chinese A-shares is positive, with an expected annualized return of 7.7% in USD over the next 10-15 years [1] - Key drivers for this optimistic outlook include the resilience of economic growth, profit growth, and the gradual clarification of risk factors [1] - Enhanced shareholder return policies, such as encouraging share buybacks and strengthening cash dividends, are expected to support long-term returns for A-shares [1] Group 2: Asset Allocation Strategies - Incorporating alternative assets into investment portfolios has become an effective way to enhance returns, reduce volatility, and significantly improve the Sharpe Ratio [2] - The global public fund market remains optimistic about long-term return prospects, supported by corporate profit resilience and technological innovation [2] - Notable governance reforms in East Asian markets, including China and South Korea, are improving capital returns by aligning corporate strategies with shareholder interests [2]

Core Viewpoint - The article discusses the current economic trends in China, highlighting both upward and downward movements in various sectors, including real estate, consumer goods, and infrastructure, while also addressing the implications for investment opportunities and risks. Group 1: Economic Activity - The WEI index has shown a low recovery, reaching 5.43% as of November 16, 2025, up from 4.83% the previous week, indicating a slight improvement in economic activity [2][9] - Since the end of September 2025, the WEI index has generally declined, primarily driven by decreases in infrastructure, domestic demand, and industrial production [9][10] Group 2: Demand Trends - Retail sales of passenger cars have continued to decline, with a year-on-year decrease of 14% as of November 16, 2025, compared to a growth of 5.8% in October [3][15] - In the real estate sector, the decline in residential sales has narrowed, with a year-on-year decrease of 21% in the third week of November across 67 cities [3][13] Group 3: Production Insights - Infrastructure data shows a continued decline, with cement shipment rates at 33.4% in the second week of November, unchanged from the previous week but down from 36.4% year-on-year [3][17] - The operating rate of asphalt plants has also decreased to 25%, down 4.2 percentage points from the previous week and 7.7 percentage points from the same week last year [3][17] Group 4: Trade and Export - Container throughput at Chinese ports has marginally declined, with a week-on-week decrease of 5.4% as of November 16, 2025 [3][27] - The number of vessels departing from major ports has shown a slight rebound but remains lower year-on-year, indicating ongoing challenges in trade [3][28] Group 5: Price Movements - Domestic and international commodity prices have generally decreased, with the South China index down 1.8% and the RJ/CRB commodity price index down 2.2% [3][42] - Agricultural product prices have also fallen, with pork prices down 0.8% and vegetable prices down 0.7% [3][45] Group 6: Interest Rates and Debt - The issuance of new local government bonds has accelerated, with 224 billion yuan issued in the week of November 24, 2025, including 215.3 billion yuan in special bonds [3][49] - The yields on government bonds have remained stable, with the one-year, five-year, and ten-year yields reported at 1.4008%, 1.5907%, and 1.8166%, respectively [3][64]

Core Insights - The article compares the investment performance of social security funds, enterprise annuities, and life insurance funds over the past 15 years, highlighting that the life insurance industry has the highest investment yield and the lowest volatility, with the highest Sharpe ratio [1][6][34]. Investment Performance Comparison - In 2024, the scale of social security funds is approximately 3.3 trillion yuan, while enterprise annuities amount to 3.6 trillion yuan. In contrast, the scale of life insurance investment funds reaches 30 trillion yuan, significantly higher than both social security funds and enterprise annuities [27]. - The average investment yield for social security funds is 6.2%, for enterprise annuities is 4.7%, and for life insurance funds is 5.1% [34]. - The standard deviation of life insurance funds' yield is the lowest among the three, indicating lower risk [34]. - The Sharpe ratio for life insurance funds is the highest at 1.406, followed by social security funds at 0.619, and enterprise annuities at 0.598. The average yield of the Shanghai Composite Index is below the risk-free rate, resulting in a negative Sharpe ratio [34][35]. Investment Strategies and Asset Allocation - The investment strategies of social security funds, enterprise annuities, and life insurance funds differ significantly due to their underlying asset allocations. Social security funds have increased their equity asset allocation from 23.7% in 2008 to 53.6% in 2024 [7][17]. - Enterprise annuities maintain a high allocation to equity assets, consistently above 80% over the past decade, reaching 86.8% by 2024 [25]. - Life insurance funds have approximately 20.3% of their assets in equity and long-term equity investments [19]. Regulatory Environment - The regulatory frameworks for social security funds and enterprise annuities differ from that of insurance funds, which must consider risks such as policyholder withdrawals and liquidity [37]. - The 2025 regulations allow insurance companies more flexibility in equity asset allocation based on their solvency ratios, with limits set at 40% or 50% depending on their solvency status [15][17].

Group 1 - Morgan Asset Management's report projects a 6.4% annual return for a 60/40 stock-bond portfolio over the next 10 to 15 years, indicating continued attractiveness despite strong market performance [1] - The report highlights that U.S. large-cap stocks are expected to yield a return of 6.7%, remaining stable compared to the previous year [1] - The firm believes that the adoption of AI will enhance corporate profits in the short term and contribute to productivity improvements in the long run [1] Group 2 - The inclusion of alternative assets in investment portfolios is expected to improve potential returns and reduce volatility, with a "60/40+" portfolio potentially achieving a 6.9% return and a 25% higher Sharpe ratio compared to traditional allocations [2] - Global stock returns are projected at 7%, with non-U.S. markets offering more attractive cyclical opportunities, benefiting from currency appreciation [2] - Asian stocks (excluding Japan) are expected to yield a return of 7.9%, while Japanese stocks, supported by ongoing corporate governance reforms, are projected to return 8.8% [2] Group 3 - U.S. core real estate is forecasted to have an 8.2% return, benefiting from attractive entry points and rising yields [2] - Core real estate in the Asia-Pacific region is expected to yield an 8.4% return, aided by a weakening U.S. dollar [2]

Core Viewpoint - The article discusses the performance of private equity products in the A-share market over the past three years, highlighting the scarcity of products that have maintained impressive returns and drawdown performance amidst market volatility caused by geopolitical conflicts, the pandemic, and trade wars [2]. Summary by Categories Overall Performance of Private Equity Products - In 2023, the average return for 662 private equity products with over 10 billion in assets was 30.15%, with an average Sharpe ratio of 2.53. Over the past three years, 430 of these products achieved an average return of 79.96% and a Sharpe ratio of 1.12 [3]. Performance by Company Size - 100 billion and above: 662 products, 30.15% return, 2.53 Sharpe; 430 products, 79.96% return, 1.12 Sharpe - 50-100 billion: 372 products, 25.59% return, 2.15 Sharpe; 242 products, 53.73% return, 0.88 Sharpe - 20-50 billion: 630 products, 29.42% return, 2.29 Sharpe; 388 products, 75.14% return, 1.33 Sharpe - 10-20 billion: 573 products, 30.50% return, 2.25 Sharpe; 328 products, 74.08% return, 1.07 Sharpe - 5-10 billion: 745 products, 31.57% return, 1.91 Sharpe; 449 products, 82.89% return, 0.91 Sharpe - 0-5 billion: 2057 products, 28.59% return, 1.82 Sharpe; 1169 products, 72.52% return, 0.84 Sharpe - Total: 5039 products, 29.34% return, 2.06 Sharpe; 3006 products, 74.13% return, 0.98 Sharpe [3]. Top Performing Private Equity Products - The top three subjective long products over the past three years are from Junzhijian Investment, Kaishi Private Equity, and Dongfang Gangwan, with average returns of 99.85% and a Sharpe ratio of approximately 1.04 [4]. - The leading product is "Junzhijian Junyue" managed by Zhang Yong, with significant returns and a high Sharpe ratio [5][6]. - The top three quantitative long products are from Ming Shi Fund, Maoyuan Quantitative, and Abama Investment, with an average return of 85.34% and a Sharpe ratio of approximately 1.02 [7]. - The leading product is "Ming Shi Spring 28" managed by Yang Kun, achieving high returns and a notable Sharpe ratio [8][9]. - The top three market-neutral products are from Ping Fang He Investment, Mengxi Investment, and Ming Huan Investment, with an average return of 85.34% and a Sharpe ratio of approximately 1.02 [10]. - The leading product is "Ping Fang He Cai Ying Ping Heng 1" managed by Lü Jieyong and Fang Zhuangxi, with impressive returns and a high Sharpe ratio [12]. - The top three multi-asset strategy products are from Borun Yintai Investment, Ming Huan Investment, and Honghu Private Equity, with an average return of 64.79% and a Sharpe ratio of approximately 1.09 [13].

Core Viewpoint - The article emphasizes the importance of the Sharpe ratio as a key metric for evaluating investment performance in the current A-share market, highlighting that higher Sharpe ratios indicate better risk-adjusted returns and investment efficiency [2]. Group 1: Performance of Private Equity Funds - In 2023, the average Sharpe ratio for 662 private equity funds with over 10 billion yuan in assets reached 2.5349, significantly outperforming smaller funds [3]. - The average return for these funds was 30.15%, with a total asset scale of approximately 12.24 billion yuan [3]. Group 2: Top Performing Funds - The top three subjective long funds with the highest Sharpe ratios were from Jihua Asset, Yuanxin Investment, and Duration Investment, with average returns of 26.88% and a Sharpe ratio of about 1.26 [4]. - The leading product was "Jihua Composite Strategy No. 1" managed by Wang Yiping, achieving a remarkable performance over ten years [5]. Group 3: Quantitative Long Funds - The average return for 286 quantitative long funds was 44.65%, with an average Sharpe ratio of approximately 3.54, indicating strong performance [7]. - The top three quantitative long funds were from Jihua Asset, Longqi Technology, and Kuande Private Equity [7]. Group 4: Market Neutral Funds - The average return for 53 market-neutral funds was 7.32%, with an average Sharpe ratio of about 1.86 [11]. - The leading product was "Mingxun Neutral No. 1 A Class" managed by Mingxun Investment, which has shown consistent upward performance since its inception [12]. Group 5: Multi-Asset Strategy Funds - The average return for 74 multi-asset strategy funds was 23.17%, with an average Sharpe ratio of approximately 2.43 [14]. - The top products in this category were managed by Mingxun Investment and Qianyan Private Equity [14]. Group 6: Quantitative CTA Strategies - The average return for 25 quantitative CTA products was 7.01%, with an average Sharpe ratio of about 1.08 [18]. - The leading product was "Heiyi CTA-T21 C Class" managed by Heiyi Asset, showcasing strong performance in the quantitative investment space [19].

Core Insights - The article draws a parallel between shopping for products during the Double Eleven sales and selecting investment funds, emphasizing the importance of a strategic approach in both scenarios Part 01: Fund Selection Guide - Step 1: Define the investment goal, similar to having a shopping objective, which helps in selecting suitable funds based on investment planning, risk tolerance, and time horizon [3] - Step 2: Evaluate historical performance and fund manager credibility, as past performance can indicate the manager's capability, even though it does not guarantee future results [3] - Step 3: Assess the cost-benefit ratio using the Sharpe ratio, which measures excess return per unit of risk, with a ratio above 1 indicating good performance and above 2 indicating excellent performance [3] - Step 4: Review the fund's holdings, focusing on industry distribution and top holdings to ensure alignment with investment intentions and avoid redundancy in the portfolio [4] Part 02: Rational Fund Management - Avoid impulsive purchases driven by market trends, akin to emotional shopping, to prevent poor investment decisions [6] - Refrain from frequent redemptions, as high transaction costs can disrupt long-term strategies and lead to a cycle of chasing market trends [7] Part 03: Optimizing the Investment Portfolio - Regular maintenance of the investment portfolio is essential, similar to periodically cleaning a shopping cart [9] - Implement a "core-satellite" strategy, allocating 60%-80% to core assets for stability and 20%-40% to satellite assets for higher returns [10][11] - Conduct periodic reviews of the fund portfolio to rebalance and maintain the intended asset allocation, ensuring alignment with market conditions [13]

Group 1: Economic Trends - The Huachuang Macro WEI Index increased to 5.3% as of October 19, up 1.19 points from the previous week [2] - Port container throughput showed a slight rebound, with a 3.6% increase compared to the previous week, while the year-on-year growth rate decreased to 4.3% [2][27] - Oil prices rebounded significantly, with WTI crude oil closing at $61.5 per barrel, up 6.9%, and Brent crude at $65.9 per barrel, up 7.6% [2][44] Group 2: Consumer Behavior - Retail sales of passenger cars turned negative, with a cumulative year-on-year decrease of 5.7% as of October 18, compared to a 6% increase in September [3][16] - The growth rate of non-durable goods consumption declined, with express delivery volume showing a year-on-year decrease of 0.8% [3][16] - Real estate sales saw a significant drop, with residential sales in 67 cities down 23% year-on-year as of October 24, compared to a 1.2% decline in September [3][16] Group 3: Production and Industry - Cement dispatch rates fluctuated, with a rate of 38.4% as of October 17, slightly up from the previous week [19] - Industrial production showed a decline in coal throughput at Qinhuangdao Port, with a year-on-year increase of only 4.6% as of October 24, down from 19% in September [19][23] - The construction sector's apparent consumption of rebar was down 14% year-on-year as of October 24 [19] Group 4: Policy and Investment - New policy financial tools have been issued, totaling over 330 billion yuan, expected to drive total project investment of 4.8 trillion yuan [4][49] - The focus of the recent Central Committee meeting shifted from "supply-side reform" to "building a unified market," indicating a change in policy direction [4][23] - The Ministry of Industry and Information Technology emphasized the need for modernization in industry governance during the recent meeting [4][23] Group 5: Trade Dynamics - The number of ships from China to the U.S. saw a significant year-on-year decline of 28.6% as of October 25 [27][29] - The overall import value from the U.S. showed a slight rebound, while imports from China remained at a low level, with a year-on-year decrease of 24.8% [28][29] - Container shipping rates for exports from Shanghai increased by 7.1% in the week ending October 24 [27] Group 6: Price Movements - Prices for pork and eggs continued to decline, with pork prices down 1.7% and egg prices down 2% [45] - The overall commodity price index increased by 0.9%, while global commodity prices rose significantly, with the RJ/CRB index up 3.3% [43][44] - The price of industrial silicon futures decreased by 0.5%, while polysilicon futures dropped by 4.1% [44][45]