Cross-Market 'Three-Part' Portfolio Strategy Framework

Xueqiu’s ‘Three-Part’ method establishes a ‘three-category’ allocation (usually equities, fixed income/defense, commodities/opportunities) across five major asset classes including A-shares, Hong Kong stocks, US stocks, bonds, and commodities to build a cross-border diversified and risk-controllable asset portfolio. Its core concept lies in

. It can be understood and implemented from the following aspects:

1. Equities (≈1/3) — Enhance Returns
   • Includes A-shares (growth, technology, consumption), Hong Kong stocks (finance, real estate, Hong Kong-listed tech), and US stocks (big tech, big consumption, AI/semiconductors, etc.).
   • Diversifies policy risks (A-shares), currency/interest rate risks (US stocks), and Hong Kong stocks’ sensitivity to China’s macro policies through regional and style differences to achieve diversified income sources.
   • Recommendation for stratification: e.g., 40% A-shares, 35% US stocks, 25% Hong Kong stocks. Select targets with reasonable valuations and stable profitability, while closely monitoring macro policies and the US dollar cycle.

2. Fixed Income/Defense (≈1/3) — Stable Cash Flow and Risk Hedging
   • Core: High-rated bonds (treasury bonds, policy financial bonds, investment-grade credit bonds). Appropriate allocation to overseas US dollar bonds or US dollar bond ETFs; complement with short-term interest rate products (e.g., money market funds, short-term financing) to enhance liquidity.
   • Enhances returns in interest rate downward cycles; flexibly adjusts through term structure when interest rates rise. Fixed income usually performs well when global risk appetite declines, providing ‘downside protection’ for the portfolio.

3. Commodities and Alternative Opportunities (≈1/3) — Inflation Resistance and Strategic Opportunities
   • Includes bulk commodities (gold, industrial metals, energy), commodity ETFs/futures with hedging properties, and commodity chains corresponding to specific themes (e.g., new energy materials, semiconductors).
   • Commodities hedge against inflation, currency depreciation, and geopolitical risks, especially providing positive returns during inflation or supply-demand shocks. Optional allocations (e.g., convertible bonds, quantitative strategies) can also be considered as ‘opportunity’ assets.

1. Rolling Rebalancing
   : Conduct rebalancing quarterly or semi-annually to lock in returns and reset target weights. For example: If A-shares outperform and exceed the target weight, appropriately reduce holdings and shift to bonds or commodities to control single-market exposure.
2. Macro and Sentiment Monitoring
   : Combine macro indicators and asset correlations (e.g., US dollar index, interest rate spreads, CPI, monetary policy changes) to formulate a ‘deviation-response’ strategy. For example, increase bond allocation when the US dollar is strong and spreads widen; increase commodity proportion when inflation pressure rises and global liquidity is loose.
3. Liquidity and Term Management
   : Commodities and overseas equities have relatively weak liquidity. Reserve liquid assets (e.g., money market funds) to cope with redemptions, and control commodity/foreign currency positions not to exceed tolerable volatility.

Dimension	Recommended Implementation	Detailed Ideas
A-shares	Focus on growth and consumption upgrading	Select leading companies with reasonable valuations and strong profit growth certainty (e.g., new energy materials, artificial intelligence, healthcare)
Hong Kong stocks	Utilize the linkage of ‘Hong Kong Stock Connect + southbound funds’	Pay attention to finance (e.g., large banks), real estate recovery, and infrastructure benefiting from the Greater Bay Area policy
US stocks	Focus on tech/AI and anti-cyclical blue chips	Core: large-cap leaders; complement with thematic ETFs (AI, semiconductors) to diversify single-company risks
Bonds	Utilize term structure and credit stratification	Combine treasury bonds (defense), policy financial bonds (returns), and high-quality credit bonds (return enhancement); allocate global investment-grade bonds to hedge exchange rates
Commodities/Alternatives	Combine ETF + futures strategies	Gold for defense, energy for hedging, industrial metals sensitive to the business cycle; avoid delivery issues via commodity ETFs

• Exchange Rate Management
  : When involving US stocks and overseas bonds, pay attention to exchange rate fluctuations; hedge via foreign currency wealth management or exchange rate-neutral products.
• Taxes and Transaction Costs
  : Reserve taxes (e.g., Hong Kong stock stamp duty, US stock transfer fees) and exchange costs for cross-market transactions; prioritize transaction efficiency based on net value.
• Scenario Drills
  : Simulate two scenarios—‘overseas market crash’ and ‘domestic policy tightening’—and formulate contingency plans (e.g., first reduce equities, increase bonds/commodities).
• Information Sources and Collaboration
  : Regularly obtain macro data, policies, QFR (Quantitative Flexibility Report), and maintain sensitivity to the global financial cycle.

The ‘Three-Part’ method is not just a simple ‘average distribution’ but a dynamic asset portfolio based on

. It diversifies market and institutional risks among A-shares/Hong Kong stocks/US stocks, establishes a ‘defense + hedging’ system between bonds and commodities, and complements rebalancing mechanisms and risk monitoring to effectively disperse risks while maintaining long-term returns. As market structure and macro cycles change, flexibly adjust the actual weight and selected targets of each part to maintain the portfolio’s appropriateness in the current risk-return balance.

If further quantitative models, historical correlation analysis of various assets, or portfolio tracking reports are needed, enable the

to conduct detailed modeling and visual verification of relevant data.