"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 primarily 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 market trends and instead seeks certainty in high-quality assets. This “pragmatism” is rooted in her extensive experience with insurance capital—deeply understanding the essence of large fund management and long-term perspectives, with mature risk prediction and control capabilities.

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, more capable of sticking to long-term strategies, and better aligned with the core principles of value investing. Long-term investing here does not mean “blindly holding,” but rather selecting targets with long-term value based on current market trends and in-depth industry research—focusing on trends rather than swings—to enjoy 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, not 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 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 disciplined 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 helps avoid potential risks from aggressive moves. Women are less likely to be swayed by short-term market emotions, more able to adhere to long-term strategies, and align well with the core principles 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 to enjoy the full benefits of industry growth, like photovoltaics in earlier years or AI in recent years. That’s value investing.

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

Q: How do you manage your emotions and support investors 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 mind, easing tension and maintaining a calm mindset; second, returning to research—deeply reviewing industry logic and market dynamics to stabilize my cognition and stay rational.

To support investors through cycles, we focus on performance. Since we adopt a balanced approach, even during major market swings, we often achieve relatively good returns. I believe what truly moves investors is not motivational words during downturns but consistent, stable performance.

Q: How do you mitigate interest rate and credit risks in bond investments under current market conditions?

Bao Xiaohui: From my experience, avoiding interest rate risk is easiest by focusing on short-term bonds rather than long-term ones, adjusting holdings flexibly based on market conditions, and avoiding greed 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 those with poor credit, even if yields are slightly lower, and choosing entities with strong credit, ample cash flow, and reliable repayment ability. Diversification is also essential—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 reasoning? What risks should investors watch?

Bao Xiaohui: It’s hard to pinpoint the most promising sectors for 2026 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, not a revolution” 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 framework 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 to focus on performance and results. Although it sounds harsh, it’s the reality of our industry. Clients care about performance, not how much research effort we put in. Whether we capitalize on market hotspots or uncover 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 deliver results are given the best rewards and space to succeed. Results speak louder than words—enabling capable people to earn and stand firm.

Q: What are your hopes for your future investment 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 and reached where I am today—unexpected but rewarding. I hope to stay passionate and composed, not defined by age or status, 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 every 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 and Xu Nan