Tang Xiaodong, Co-General Manager of the Macro Strategy Department at Southern Fund, stated that while the overall domestic and global macroeconomic environment is expected to remain stable in 2026, market volatility may intensify, making it unlikely to replicate the “steady and stable” market conditions seen in 2025. He advised investors to adopt a balanced allocation strategy based on their individual risk tolerance and to focus on structural opportunities in dividend-paying assets, technology, and domestic demand sectors. Regarding the A-share and Hong Kong stock markets, he anticipates that in 2026, both markets will exhibit a pattern of fluctuating movements with a gradual upward trend in their central levels. The expectation of a volatile trend stems from the fact that economic growth will provide relatively limited support for corporate earnings, and market valuations have already moved away from significantly undervalued levels. However, the expectation of a gradual upward shift in the market’s central trend is based on the fact that valuations are currently at neutral levels and have not yet reached the point of severe overvaluation that would signal a bubble. (Securities Times)