China CITIC Bank International (CNCBI) released its January investment monthly report, stating that global stock markets delivered stellar performance in 2025, and the market was concerned whether this can be replicated in 2026. Although US stock valuations are high, above-estimate earnings growth supports US stocks notching new highs; the ECB's consecutive interest rate cuts, along with increased defense infrastructure investment by Germany and France, boosted European stock valuations, with some European stocks outperforming US stocks; a weak US dollar bolstered Asian stock markets, with South Korean stocks benefiting from AI and corporate reforms, leading global performance; Chinese and Hong Kong tech stocks also regained foreign attention, supported by domestic demand policies, making financial markets vibrant, CNCBI noted.

However, entering 2026, the market faces greater uncertainty. Monetary policies of global central banks may diverge, with potential interest rate hikes by the central banks of Australia, New Zealand, Canada, and Japan, while rate cuts in parts of Europe and Asia may slacken; the US midterm elections and the Fed Chair's succession add political variables; potential trade protection policies, if escalated, could lead to supply chain restructuring; if the AI boom does not match earnings growth, a bubble adjustment may occur; if the US dollar strengthens due to the resilience of the US economy, it will suppress EM performance.

CNCBI stated that these factors could add fuel to market volatility in 2026, making it difficult for a single region or asset class to stand alone. Therefore, a diversified and flexible strategy should be adopted in asset allocation, with deployment across regions and sectors, combining growth assets (such as AI supply chains) with defensive assets (such as high-yield stocks) to effectively address risks and seize opportunities.
~



AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
SENTM (C)	23331	3.01 (-)	0.173	4.3 X
SENTM (P)	21518	1.98 (-)	0.155	4.2 X
HKEX (C)	22156	530.5 (-)	0.042	11.6 X
HKEX (C)	16460	518.5 (-)	0.051	11.4 X
HKEX (C)	23464	464.19 (-)	0.148	9.0 X
HKEX (P)	21911	359.8 (-)	0.106	8.0 X
HKEX (P)	18831	337.8 (-)	0.022	14.1 X
HKEX (Bull)	63775	392 (394)	0.051	16.3 X
HKEX (Bull)	69254	388 (390)	0.053	15.7 X
HKEX (Bear)	69592	452 (450)	0.073	11.4 X
HKEX (Bear)	55993	432 (430)	0.038	21.9 X
TENCT (C)	22876	810 (-)	0.068	11.0 X
TENCT (C)	23240	801.388 (-)	0.093	10.0 X
TENCT (C)	23065	759.38 (-)	0.104	10.7 X
TENCT (P)	21410	570.27 (-)	0.089	14.1 X
TENCT (P)	20800	530.38 (-)	0.027	17.7 X
TENCT (P)	21910	499.8 (-)	0.087	8.6 X
TENCT (P)	19650	480.68 (-)	0.019	14.1 X
TENCT (Bull)	67891	582 (585)	0.088	14.2 X
TENCT (Bull)	68501	577.5 (580.5)	0.100	12.5 X
TENCT (Bear)	65871	668 (665)	0.076	16.4 X
TENCT (Bear)	55685	648 (645)	0.044	28.3 X
KUASO (C)	19329	98.93 (-)	0.023	7.4 X
KUASO (C)	22186	75.93 (-)	0.096	3.5 X
KUASO (P)	19797	68.33 (-)	0.128	5.3 X
KUASO (P)	18456	49.83 (-)	0.092	2.8 X
KUASO (Bull)	61319	60 (62.5)	0.068	9.7 X
KUASO (Bull)	55800	58 (60.5)	0.090	7.4 X
KUASO (Bear)	65156	76.3 (73.8)	0.092	7.2 X
KUASO (Bear)	60982	71.3 (68.8)	0.050	13.2 X
BAIDU (C)	29382	180.98 (-)	0.104	6.9 X
BAIDU (C)	21044	150 (-)	0.117	6.0 X
BAIDU (C)	21914	138.1 (-)	0.156	5.8 X
BAIDU (P)	20802	113.78 (-)	0.072	4.0 X
BAIDU (P)	20797	95.83 (-)	0.021	7.5 X
BAIDU (Bull)	57344	107.5 (109.5)	0.077	3.7 X
BAIDU (Bull)	54866	103 (105)	0.086	3.3 X
BAIDU (Bear)	53254	157 (155)	0.028	10.3 X
ALIBA (C)	22451	173.43 (-)	0.059	7.7 X
ALIBA (C)	15287	170.1 (-)	0.051	8.7 X
ALIBA (C)	23064	164.09 (-)	0.072	7.7 X
ALIBA (C)	23237	160.1 (-)	0.092	7.0 X
ALIBA (P)	21859	144.9 (-)	0.141	4.1 X
ALIBA (P)	20801	134.9 (-)	0.067	6.2 X
ALIBA (P)	20642	126.78 (-)	0.067	5.1 X
ALIBA (Bull)	56908	138.5 (140)	0.024	12.4 X
ALIBA (Bull)	56226	136.9 (138.4)	0.026	11.5 X
ALIBA (Bear)	54644	166.5 (165)	0.031	9.6 X
ALIBA (Bear)	55891	161.5 (160)	0.023	13.0 X
Nvidia (C)	10055	230 (-)	0.122	6.9 X
Nvidia (C)	11007	205 (-)	0.345	4.3 X
Nvidia (P)	10057	165 (-)	0.152	4.9 X