As the year draws to a close, investors are keenly focused on how the equity market will perform in 2026. Recently, J.P. Morgan Asset Management's China equity investment team shared their insights on market opportunities for 2026 from a diversified and international perspective during a strategy session.
Wang Qionghui, China CEO of J.P. Morgan Asset Management, emphasized in her opening remarks that despite the global trend toward passive investing, the firm remains committed to active investment capabilities, aiming to build a research-driven platform that is "rooted locally yet globally integrated." Leveraging research-driven strategies, teamwork, and a rigorous risk management system, the company continues to deliver high-quality products and services to investors while uncovering long-term value.
According to Galaxy Securities data, as of November 30, J.P. Morgan Fund ranked among the top 10 in active equity investment management over the past 1, 2, 3, and 20 years (6/130, 6/127, 8/122, and 7/29, respectively), with a one-year active equity investment return exceeding 50%. The firm has also made significant strides in index and quantitative investing, fixed income, multi-asset solutions, hybrid assets, and liquidity management, with growing strength across its investment teams.
Looking ahead to 2026, Du Meng, Deputy General Manager and Chief Investment Officer of J.P. Morgan Asset Management China, noted that as China's industries enhance their global competitiveness, international investors are reassessing the allocation value of Chinese assets. The long-term revaluation of Chinese assets remains ongoing, presenting structural opportunities in 2026. He stressed that in the current market divergence, identifying quality assets should transcend traditional "old vs. new industry" frameworks and focus on stable demand growth and sustainable cash flows.
From an investment style perspective, Li Bo, Head of the Balanced Growth Team and Senior Fund Manager, believes that tech-driven growth will maintain a relative advantage in 2026. China's economic transformation and upgrading highlight technology as a key driver of future growth, while AI's tangible development and sustained capital expenditures by global tech giants and domestic leaders are fueling a clear industrial trend. With expectations of moderate economic recovery and improved corporate earnings, the "value growth" strategy—incorporating three-year compound growth rates, reasonable valuations, and PEG ratios—can identify high-potential, fairly valued companies.
Ni Quansheng, Head of the Balanced & Value Team and Senior Fund Manager, analyzed from an asset allocation standpoint that as economic fundamentals stabilize and industry structures optimize, high-quality listed companies with competitive advantages are poised to deliver superior shareholder returns, enhancing the relative appeal of equities. He highlighted two key opportunities: cyclical industries (e.g., non-ferrous metals) benefiting from supply constraints and improved cash flows, transitioning into stable dividend-paying value stocks; and high-end manufacturers leveraging China's supply chain efficiency to expand globally, gaining market share and attractive valuations.
Focusing on high-growth sectors, Zhao Longlong, Fund Manager of the Growth Team, is bullish on lithium battery/energy storage and AI-driven hardware/software investments. Energy storage is emerging as a key demand driver, with improving supply-demand dynamics and significant profit recovery potential for industry leaders. AI presents hardware and software opportunities, though progress in commercialization requires close monitoring.
ETF trends also garnered attention. Hu Di, Director of Index and Quantitative Investment, noted that J.P. Morgan Asset Management has carved a unique path in the global ETF wave by leveraging active management expertise. Since launching its global ETF platform in 2014, the firm has become the world's second-largest active ETF issuer (Morningstar, ETF.com data as of July 2025), with 2025 net inflows ranking first globally. In China, the firm adopts a boutique strategy, prioritizing investor experience with ETFs like the CSI A50, CSI A500, CSI 300 Free Cash Flow, and CSI A500 Enhanced Strategy ETFs. Its Smart Beta and enhanced index products have also gained traction, with the J.P. Morgan S&P HK Connect Low Vol High Dividend ETF surpassing RMB 17 billion in assets under management (Wind data as of December 12, 2025).
For 2026, Hu Di sees continued value in the "barbell strategy," with the firm offering thematic tech and dividend ETFs in A-shares and HK Connect markets to provide precise investment tools.