Core Viewpoint - The Federal Reserve's decision to stop balance sheet reduction starting December 1, 2025, is seen as a reaction to economic pressures rather than a proactive easing measure, leading to significant market fluctuations and a strengthening of the RMB assets [1][6][9]. Market Reaction - The immediate market response included a weakening of the US dollar, with fluctuations in the 99-100 range, and a surge of northbound capital into A-shares, making high-dividend assets in Hong Kong highly sought after [4][3]. - The RMB is benefiting from improved interest rate differentials and an upcoming peak season for exporters, indicating a potential for medium to long-term appreciation [4][12]. RMB Asset Strength - The rise of RMB assets is attributed to a "certainty premium," as global economic conditions remain weak and geopolitical risks are high, while China's stable growth outlook and asset valuation provide a safe haven for global capital [12][13]. - Foreign capital's increased allocation to RMB assets is not merely for short-term gains but reflects a long-term positive outlook, supported by stable cash flows in high-dividend A-share sectors [15]. Investment Strategy - The focus for investors should be on a balanced approach, emphasizing high-dividend assets while avoiding risky investments that rely heavily on external financing [18]. - Key risks to monitor include the high valuation of US tech stocks and the potential volatility in emerging markets due to cross-border capital flows [20][22].