Global investment management company Schroders Fund stated that Chinese mainland and Hong Kong stock markets have performed strongly since early April. As the negative economic impact of tariffs gradually weakens, the massive asset allocation demand from Chinese residents may provide long-term support for quality equity demand, with positive stock market performance having favorable effects on public confidence and consumption.

Andy An, Deputy General Manager and Chief Investment Officer of Schroders Fund, noted that since the Trump administration announced reciprocal tariff intentions on "Liberation Day" April 2nd, investors have begun focusing on global economic growth. However, changes over the past several months have led to an overall diminishing of financial market concerns about tariffs.

He indicated that the gradual improvement in global capital markets has also driven Chinese stock markets in terms of risk appetite and structural trends. The rebound in mature capital markets, primarily the United States, over recent months has played a driving role for capital markets in other global regions. Particularly, continuous progress at the industrial level has enabled corresponding domestic Chinese industries and stocks to perform well, such as artificial intelligence and innovative pharmaceuticals.

Schroders Fund has observed that since 2021, the gap between Chinese residents' deposits and loans has continued to widen, indicating massive resident-side asset allocation demand. Referencing domestic, international, and historical situations, the institution believes quality equities represent a good allocation direction, with attractively valued quality stocks serving as excellent choices. He believes this trend may persist over the medium to long term.

Given the current macroeconomic environment and policy expectations, liquidity is expected to remain at accommodative levels. Positive stock market performance has favorable impacts on public confidence and consumption, and trade relationship tensions have been fully anticipated. These factors may help mitigate market downside risks.

Regarding the second half A-share market, An stated that capturing structural opportunities takes priority. Schroders maintains a relatively positive view on the Hong Kong stock market, as the number of quality companies in the Hong Kong market has continued to increase over the past two years. Many companies may be among the primary sources of structural returns, with policy-level consistent support for the Hong Kong market. Many quality A-share companies have chosen to list in Hong Kong, effectively enhancing the quality and depth of the Hong Kong stock market.

An pointed out that structural opportunities in the technology sector still exist. Recent domestic algorithmic breakthroughs and relaxation of some chip export controls have injected vitality into the domestic market. Domestic model iteration is accelerating, with investment focus shifting toward the AI application layer. Platform companies with massive user bases still have opportunities to realize value through innovative applications, providing a less crowded new battlefield.