"Her Power" | Changli Asset Chairman Bao Xiaohui: Macro Knowledge Base Origin, Long-term Value Recognition

As one of China’s first pension fund managers and absolute return investment managers, Bao Xiaohui, Chairman of Changli Asset, has been deeply involved in the asset management industry for over a decade. Her focus is on the “Fixed Income+” strategy, covering bonds, equities, and multi-asset allocation, while managing all categories of private equity products. She is a female leader with a background in insurance capital investment. Her investment philosophy of “macro fundamentals and long-term value” offers a rare calm perspective in a restless market.

Chairman of Changli Asset, Bao Xiaohui

Bao Xiaohui describes her investment style as “pragmatic,” stemming from a respect for risk and a firm belief in long-termism. She views investing not as a sprint but as a marathon of cognition and temperament. She prefers to avoid blindly chasing hot trends and instead seeks certainty in high-quality assets. This “pragmatism” is rooted in her extensive experience in insurance capital, with a deep understanding of large fund management, long-term perspectives, and mature risk prediction and control abilities.

In Bao Xiaohui’s view, women in the asset management industry have a key advantage in patience and long-term focus. They are less likely to be swayed by short-term market emotions and are better at maintaining long-term strategic layouts, aligning well with the core principles of value investing. Long-term investing here does not mean “blindly holding,” but involves selecting targets with long-term value based on current market trends and in-depth industry research, focusing on trends rather than short-term swings, and enjoying the full dividends of industry development.

Facing the uncertain market of 2026, Bao Xiaohui remains clear-headed. She does not predict specific sectors for the year but emphasizes finding certainty through phase-specific characteristics. Regarding hot topics like AI and quantitative strategies, she demonstrates a strong core stability: “For my investment framework, they are ‘complementary rather than disruptive.’” She believes technology can improve efficiency but cannot replace the deep analysis and logical validation of her research team.

In team management, Bao Xiaohui practices the principle of “the capable lead, the average follow, the mediocre step down,” letting results speak for themselves—enabling capable people to earn money and stand firm. She believes the key to ensuring a high-performing, adaptable team is simple: focus on performance and results. “Clients don’t care how much research effort we put in; they only care about our performance. So I don’t force team members to do superficial work or chase market hotspots and frontier sectors.”

Beyond investing, Bao Xiaohui’s outlook on life is equally inspiring. She believes her future is full of possibilities. Having come from an insurance institution to founding Changli Asset, she has broken age and identity barriers, maintaining passion and composure, living as she likes.

Selected Interview Excerpts:

Q: Can you share your investment advantages? Describe your style in one word.

Bao Xiaohui: My core advantages are: first, many years of experience in insurance capital, with a deep understanding of large fund management and long-term perspectives, and mature risk prediction and control; second, skill in distinguishing industry trends from trading rhythms—able to act decisively when opportunities arise and stay calm during market fluctuations; third, emphasizing multi-asset coordination, flexible strategy adjustments based on market changes, balancing returns and safety. If I had to describe my style in one word, it would be “pragmatic.” I avoid blindly chasing hot topics and prefer to find certainty in high-quality assets, responding rationally and disciplined to market volatility, aiming for sustainable long-term absolute returns.

Q: What unique advantages do women bring to research and investment? How do you view long-term investing? What role does risk control play in your portfolio?

Bao Xiaohui: I believe the main advantages women have in research and investment are patience and long-term focus. From my observations, women managers tend to use leverage more cautiously, which may cause them to miss some short-term excess gains but also helps avoid potential risks from aggressive moves. Women are less likely to be swayed by short-term market emotions and can better adhere to long-term strategic layouts, aligning with the core of value investing.

Long-term investing, in my view, is not about “blindly holding,” but about selecting targets with long-term value based on current market themes and in-depth industry research, focusing on trends rather than swings, and enjoying the full growth dividends of an industry—like photovoltaics in earlier years or AI in recent years. That’s value investing.

Risk control is always our top priority at Changli Asset, even more important than returns. We believe that in this market, the institutions that can survive the longest are not necessarily those earning the most but those enduring the longest.

Q: How do you manage your emotions and support clients through market cycles?

Bao Xiaohui: When facing market volatility and pressure, I mainly use two methods: first, physical exercise like running, which helps relax the body and ease mental tension, keeping a calm mindset; second, returning to research—deeply reviewing industry logic and market fluctuations to reinforce professional understanding and maintain rational judgment.

To help clients through cycles, we focus on performance. Our investment strategy is balanced between offense and defense, so even during major market swings, we can often achieve relatively good returns. I believe what truly moves investors is not motivational words during downturns but consistent, stable returns.

Q: How should investors hedge against interest rate and credit risks in bonds?

Bao Xiaohui: From my experience, avoiding interest rate risk is easiest by keeping bonds short-term rather than long-term, adjusting holdings flexibly based on market conditions, and not being greedy for high yields—this reduces the impact of interest rate fluctuations on the portfolio.

For credit risk, the key is selecting good debt issuers—avoiding weaker credits, even if yields are slightly lower, and choosing entities with good reputation, solid cash flow, and reliable repayment ability. Diversification is also crucial—avoiding concentration in a single sector or bond type to lower the risk of default from any one issuer.

Q: What sectors or themes do you favor for 2026? What is your logic? What risks should investors watch?

Bao Xiaohui: It’s hard to pinpoint the most promising sectors for 2026 now, given the high uncertainty this year. I prefer to identify opportunities based on phase-specific market features. For the first half of the year, I will focus on the petrochemical industry while also maintaining some high-quality asset allocations.

Q: How do AI and quantitative strategies influence your investment framework?

Bao Xiaohui: Honestly, they have no significant impact.

The rapid development of AI and quantitative methods is more of a “supplement” than a “disruption” to my framework. We mainly use AI and quantitative tools to improve research efficiency—helping us gather data and summarize insights from vast information, saving time on exploring new industries, so our research team can focus on deep analysis and logical validation. Our core investment approach remains consistent; AI is just a tool, not our main brain.

Q: How do you ensure your team quickly adapts to changing market conditions? What management strategies do you employ?

Bao Xiaohui: The key is simple: focus on performance and results.

Although it sounds harsh, this is the reality of our industry. Clients don’t care how much research effort we put in; they only care about our performance. Whether we capitalize on market hotspots or find opportunities in traditional sectors, those who deliver good results are rewarded.

At Changli Asset, our management principle is “the capable lead, the average follow, the mediocre step down.” We don’t look at seniority or relationships—only real ability and contribution. Those who can win are given the best rewards and space to perform. Results speak louder than words—enabling capable people to earn money and establish credibility.

Q: What are your hopes for your future investments and life? What would you like to say to clients managing products?

Bao Xiaohui: I believe my future is full of infinite possibilities. Just like when I left an insurance institution to start Changli Asset, I never imagined I’d be here today. I hope to always stay passionate and composed, not defined by age or identity, balancing professional growth with life’s warmth, living as I like, and inspiring more women in the industry.

To clients: Thank you for your trust and long-term support. Changli Asset will continue to approach each investment with professionalism and rigor, accompanying you through market cycles, witnessing the value of time, and living up to every trust and commitment.

Text by: Qian Xiaorui

Edited by: Wang Xinyu, Xu Nan