Introduction: Many investors share a common dilemma: dissatisfaction with declining bank deposit rates, hesitation toward volatile stock markets, and uncertainty about real estate amid diverging regional trends and demographic shifts. This "asset scarcity" anxiety highlights the need for a long-term analytical framework beyond short-term price fluctuations. Recently, CITIC-Prudential Fund's "UPward, Investing with Warmth" series arrived in Jilin, helping investors examine wealth trends through a macro, structured lens.

I. Trend Insight: The Silent Shift in Wealth Anchors For decades, Chinese household wealth concentrated heavily in real estate. Now, a clear "decline-rise" dynamic emerges: while some regional property markets correct, state capital and institutional support for capital markets intensify. This reflects China's structural "asset re-anchoring" – transitioning from land/construction-driven growth to technology innovation, industrial upgrades, and capital markets as multi-engine drivers. Two key perspectives:

Regional Divergence: Population flows dictate asset potential. Contrasting Jilin and Hainan's property markets reveals that sustained migration signals stronger economic vitality and appreciation potential. Capital increasingly favors innovation-driven sectors over traditional assets.

Policy Direction: Local SOEs and fiscal authorities actively support listed companies through buybacks, while "national team" funds like Central Huijin demonstrate long-term market confidence. Policies also encourage insurers' long-term equity participation. These suggest quality equities and innovation-linked financial assets may become new wealth anchors.

A three-tier framework helps navigate this shift: Macro (Direction): Demographic shifts, tech revolutions, and core policies reveal long-term "currents." Meso (Structure): Track capital rotation among equities, bonds, and real estate to gauge "channel" dynamics. Micro (Selection): Focus on corporate profitability and governance to identify quality "vessels."

II. Gold: Beyond Safe Haven – The Balancing Asset Amid diversification, gold gains strategic relevance as central banks (including China's) boost reserves, driven by: Economic Cycles: Gold often inversely correlates with U.S. rates; looser monetary policies reduce its opportunity cost. Risk Hedge: Rising geopolitical uncertainties highlight gold's historical role in portfolio resilience. Currency Strategy: Gold's share in China's reserves remains below developed peers, aligning with RMB internationalization.

For investors, gold serves not as high-growth asset but as a "breakwater" – providing balance against volatility. (Note: Past trends don't guarantee future outcomes.)

III. Investment Framework: From Insight to Action Transitioning insights into rational strategies involves: 1. Self-assessment: Align assets with personal circumstances. 2. Long-term Lens: Prioritize structural value over fleeting trends.

The event consensus: In this re-anchoring era, successful investing lies not in chasing trends but in building adaptable, risk-aligned wealth frameworks. CITIC-Prudential Fund continues supporting investors through professional, empathetic guidance.

Disclaimer: Views expressed are current opinions only, not investment advice. Fund performance isn't guaranteed. Investors should consult prospectuses and assess risks independently.