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Market Snapshot

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This document is prepared by The Bank of East Asia, Limited (“BEA”) and BEA Union Investment Management Limited (“BEA Union Investment”) for customer reference only. The content is based on information available to the public and reasonably believed to be reliable but has not been independently verified.

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Investment involves risk. You should consider your own risk tolerance level and financial circumstances before making any investment choices. The unit prices of the funds may go down as well as up. Past performance of the funds is not indicative of future performance. For further details including the product features, fees and charges, and the risk factors involved, please refer to the MPF Scheme Brochure of the relevant scheme.

The videos have not been reviewed by the Securities and Futures Commission in Hong Kong.

Issuer: BEA Union Investment Management Limited

 

The documents are available in Chinese only.


This document is prepared by BEA Union Investment Management Limited for information purposes only. BEA Union Investment Management Limited is not soliciting any action based upon this information, or giving any advice or recommendation. Neither this document nor any of its contents shall be construed as an offer, invitation, advertisement, inducement, undertaking, warranty, or representation of any kind or form whatsoever and BEA Union Investment Management Limited hereby expressly disclaims any liabilities in relation thereto.


The information contained in this document is based upon information which BEA Union Investment Management Limited considers reliable and is provided on an “as is” basis. Whilst every effort has been made to ensure accuracy, neither BEA Union Investment Management Limited nor any of its directors / officers accept any responsibility whatsoever for the accuracy, completeness, or timeliness of the information contained in this document. The information remains the property of BEA Union Investment Management Limited. Neither this document nor any of its contents should be copied or distributed to third parties without the prior written consent of BEA Union Investment Management Limited.


This document has not been reviewed by the Securities and Futures Commission in Hong Kong.


Issuer: BEA Union Investment Management Limited

County/ Region Outlook Overview
Equities Overweight
The strength of the corporate earnings cycle, gradual easing conflict in Middle East and macro data remain supportive to our risk-on stance. The AI arms race and data center buildout momentum continue to be the dominant themes in global markets, which propelled markets in the U.S. and Asia to all-time highs.
U.S. Overweight
In the U.S., equities rebounded strongly in April, supported by progress toward a ceasefire with Iran, first-quarter corporate earnings that exceeded expectations, and renewed enthusiasm for AI. Headline Consumer Price Index rose 3.8% year on year, driven mainly by higher oil prices and shelter components, while Producer Price Index increased 6.0% year on year to its highest level since December 2022. Market surveys indicated that annualized headline Consumer Price Index in the second quarter could reach 6.0%. The Federal Reserve kept interest rates unchanged at its April meeting and gave no clear guidance on the future policy path. As investors reassessed the monetary policy outlook, market expectations for rate cuts in the near to medium term faded markedly.
Asia Overweight
Despite ongoing geopolitical concerns, the rally in April was driven by strong first quarter earnings especially from the AI supply chain. Strong capex guidance by U.S. hyperscalers also boosted sentiment in tech-heavy Asian markets. The outlook of Asian equities remains constructive on the back of the durability of the global AI capex and supportive local policies.
Europe Slightly Overweight
In Europe, equities rebounded after a sharp pullback in March. Markets were lifted by optimism around Middle East peace negotiations, but came under pressure toward the end of April on concerns that the U.S. might impose higher tariffs on the EU. Eurozone GDP grew 0.8% year on year in the first quarter, in line with expectations, while inflation rose from 2.6% to 3.0%. The European Central Bank left rates unchanged in April, but continued to face a policy dilemma between containing inflation and supporting economic growth.
Japan Slightly Overweight
In Japan, equities outperformed developed markets, with artificial intelligence and semiconductor stocks posting strong gains and offsetting the impact of oil price volatility. Core Consumer Price Index rose 1.8% year on year in March, still below the central bank’s 2% target. The April composite PMI edged down slightly to 52.4. The yen continued to weaken, supporting export growth of 11.5% year on year. The Bank of Japan faced further pressure to raise interest rates to curb inflation and support the yen. In April, the Bank of Japan kept its policy rate unchanged, while lowering the median forecast for real GDP growth this year to 0.5%.
Hong Kong & Chinese Mainland Underweight
Chinese Mainland’s economic activity remained structurally mixed: traditional and consumer sectors were still weak, while high-end manufacturing, exports and the semiconductor supply chain continued to expand. The April manufacturing PMI stayed in expansionary territory at 50.3, while exports rose 14.1% year on year, underscoring that strong exports remained an important engine of China’s growth. Consumer Price Index rose 1.2% year on year, while Producer Price Index increased to 2.8%, the highest level in nearly four years.
Bonds Underweight
U.S. Treasury yield increased by 4 to 6 basis points along the curve in April. Risk remains at higher inflation in coming months with the surge of oil price and the closure of Strait of Hormuz. Offsetting this is the more dovish stance from the new Fed Chair Kevin Warsh who points to a trimmed-mean inflation measurement. Given the rate hike actions by other central banks and the volatility of long end bonds in other countries due to political concerns, long-end U.S. Treasury yield may face upward pressure.
 

The documents are available in Chinese only.


This document is prepared by BEA Union Investment Management Limited for information purposes only. BEA Union Investment Management Limited is not soliciting any action based upon this information, or giving any advice or recommendation. Neither this document nor any of its contents shall be construed as an offer, invitation, advertisement, inducement, undertaking, warranty, or representation of any kind or form whatsoever and BEA Union Investment Management Limited hereby expressly disclaims any liabilities in relation thereto.


The information contained in this document is based upon information which BEA Union Investment Management Limited considers reliable and is provided on an “as is” basis. Whilst every effort has been made to ensure accuracy, neither BEA Union Investment Management Limited nor any of its directors / officers accept any responsibility whatsoever for the accuracy, completeness, or timeliness of the information contained in this document. The information remains the property of BEA Union Investment Management Limited. Neither this document nor any of its contents should be copied or distributed to third parties without the prior written consent of BEA Union Investment Management Limited.


This document has not been reviewed by the Securities and Futures Commission in Hong Kong.


Issuer: BEA Union Investment Management Limited

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Risk Tolerance Self-Assessment Questionnaire

Everyone has their own investment comfort zone and the challenge is to strike a balance among the various investments that will satisfy your personal circumstances. To help you find out more about your investment style, we have created this straightforward risk tolerance self-assessment test. By considering your personal circumstances, financial status, attitude towards investment, and certain objective factors which reflect your tolerance to risk, you may discover more about your investment needs.