What did the ace chief and ace fund manager "gather together" to discuss?

After two years, the 12th FT Forum was grandly held. This forum, themed "Re-evaluation, Reconstruction, and Re-ignition - The Leap in the Value of Chinese Assets Driven by AI," gathered top experts and scholars from China, including chief economists and chief analysts from securities firms, as well as senior fund managers from FT Fund, "elites gathered together."

The forum sparked heated discussions around the changes in global order, trends in the AI industry, asset allocation directions, and investment opportunities in various sectors, with many insightful viewpoints shared. Some highlights are as follows:

Where is the macro change heading?

A wonderful chief dialogue roundtable took place at the forum, hosted by Yuan Yi from FT Fund, featuring Zhang Yu from Huachuang Securities, Li Chao from Zheshang Securities, Liu Chenming from GF SEC, Zhang Qiyao from Industrial Securities, and Wang Sheng from Shenwan Hongyuan Securities discussing "The Dual Impact of Intensifying Geopolitical Games and the AI Technology Revolution," focusing on "macro anchors and asset allocation," clarifying the core logic for investors amidst the changes from the US-China rivalry, major asset classes to industry trends.

Zhang Yu, Deputy Director and Chief Macro Analyst at Huachuang Securities, believes that the deep binding of US-China economic and trade relations makes "non-damaging decoupling" unfeasible. China's policy reserves are ample, and financial market volatility will be lower than economic data volatility.

Li Chao, Chief Economist at Zheshang Securities, emphasized that export grabbing and the resilience of industrial production are short-term certainties, while in the medium to long term, China may adopt relief measures to cope with trade frictions, with monetary policy likely to take priority in addressing external uncertainties through liquidity release.

What is the main investment line?

Liu Chenming, Chief Strategy Analyst at GF SEC, stated that he categorizes assets into three types: strong cyclical (real estate chain), stable (gold, high dividends), and technology emerging (AI, innovative drugs). He emphasized that gold is the "ultimate hedging tool" against the weakening of US dollar credit, while the overseas expansion of innovative drugs and the increasing penetration of AI hardware are core to the technology main line.

Zhang Qiyao, Chief Strategy Analyst at Industrial Securities, proposed that under the "East Stability and West Fluctuation" pattern, Chinese assets globally are a more advantageous asset choice, with military industry and gold being the preferred strategic allocations. The technology sector should focus on investment opportunities in AI applications spreading from upstream to midstream and downstream.

Chinese assets have stronger certainty

Liu Chenming suggested paying attention to low volatility dividends and the overseas expansion of innovative drugs; Zhang Qiyao is optimistic about the "dual upgrade" of AI downstream applications and service consumption;

Wang Sheng stated that after the adjustment of the profit effect over the past few years, equity assets are expected to usher in a real bull market in the future. From an industry perspective, he focuses on leading internet stocks in Hong Kong and autonomous driving; Li Chao summarized: "In the context of US-China confrontation, we can focus on dividends; in the context of US-China cooperation, we can focus on technology" - dividend assets provide a defensive bottom line, while AI, intelligent driving, and other new productive forces represent long-term offensive directions.

They also generally believe that despite increasing external disturbances, Chinese assets highlight their allocation value in the global rebalancing. Policy support, manufacturing resilience, and technological breakthroughs constitute core support, with gold, military industry, and AI applications becoming "ballast stones" to navigate through volatility.

Yuan Yi, Chief Economist at FT Fund, concluded: "Even though we face such great uncertainties, looking around the world, the certainty of the Chinese economy and Chinese assets is relatively stronger."

How to "Strike the Water in Midstream"

Bao Chengchao, Deputy Director of the Research Institute of Guolian Minsheng Securities, along with five senior fund managers from Franklin Templeton, including Cao Jin, Zhao Wei, Sun Bin, Xu Zhixiang, and Yu Xiaobin, discussed market opportunities under the theme "Strike the Water in Midstream, the Trends and Principles of Fund Investment," engaging in in-depth discussions on trade friction, technological trends, and responses to new regulations.

Cao Jin, manager of the Franklin Templeton Small Cap Select Fund, believes that externally-oriented enterprises need to accelerate their international layout, diversify production capacity, and enhance product strength, while leading companies may benefit from an optimized competitive landscape; internally-oriented enterprises should focus on rigid demand and innovation upgrades.

Zhao Wei, manager of the Franklin Templeton Precision Medicine Fund, cited the pharmaceutical industry as an example, stating that CXO and innovative pharmaceutical companies can withstand decoupling risks due to talent and technological barriers, with global licensing cooperation being key to breaking through.

Sun Bin, manager of the Franklin Templeton Value Advantage Fund, emphasized the resilience of China's manufacturing industry, noting that overseas enterprises can hedge against trade friction disturbances through efficient organizational capabilities, showing significant long-term advantages.

Xu Zhixiang, manager of the Franklin Templeton New Materials and New Energy Fund, pointed out that China's supply chain advantages are irreplaceable, and companies need to shift from "manufacturing overseas" to "branding overseas" to enhance added value. Yu Xiaobin, manager of the Franklin Templeton Steady Enhancement Fund, reflected on experiences from 2018, indicating that outward-oriented enterprises have already diversified risks through globalized production capacity, and the current response should be more rational.

Xu Zhixiang also stated that the key to technology investment is the technology flywheel effect, where high investment in R&D can lead to technological breakthroughs, resulting in the production of superior products and further expanding production scale. He categorized AI development into four stages: Perceptual AI, Generative AI, Intelligent Assistant AI, and Physical AI. This year, the emergence of DeepSeek represents the entry of AI applications into a practical era. Looking ahead, the Intelligent Assistant AI direction will focus more on wearable devices like AI glasses, while the Physical AI direction will pay more attention to intelligent driving and humanoid robots.

Cao Jin analyzed that capital expenditure on AI hardware is still in deep waters, and in the long term, China has broader space for AI applications.

From a pharmaceutical perspective, Zhao Wei judged that innovative pharmaceutical companies can open up market space through globalization and licensing, with both policy guidance and commercialization capabilities being indispensable.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not consider individual users' specific investment goals, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk