Hang Seng Investment Management: It is expected that the fundamentals of Asian bonds will remain stable by 2025 and the outlook for US stocks is very positive.

Ms. Li Peishan, Director and CEO of Hang Seng Investment Management, said that global investment-grade bonds still remain attractive, with a preference for Asian bonds and expectations for continued strong demand from investors. Firstly, the bank expects the fundamentals of Asian bonds to remain strong in 2025. Even though some industries and specific issuers may be affected by U.S. tariffs, most Asian companies are expected to have strong balance sheets and sufficient credit buffers by 2025, leading to a significant decrease in default rates. Given the continued attractiveness of yields on Asian bonds, investors' demand for them is expected to remain strong. Ms. Li Peishan stated that, in terms of asset management scale, Hang Seng Investment is the largest ETF manager in Hong Kong. As of December 2024, the company managed a total of 13 ETFs with a total AUM of HK$167.1 billion, accounting for 36% of the total market value of the ETF market in Hong Kong. In 2024, the bank's ETFs had an average daily trading volume of HK$12.6 billion, representing around 68% of the overall Hong Kong ETF market. The bank stated that in terms of asset allocation for 2025, they have a "neutral" view on the mainland and Hong Kong stock markets, favor high-dividend stocks in the Hong Kong market, hold a "most bullish" view on the U.S. stock market, a "bullish" view on the Japanese stock market, but a "cautious" view on the European and UK stock markets.