On December 9, a notable line in a released meeting summary stating "implementing a more proactive fiscal policy and moderately loose monetary policy" caught widespread attentionThis phrase is not merely a hollow slogan; it encapsulates a significant economic directiveThe combination of "proactive" and "moderately loose" has not been seen for over thirty years, having only appeared briefly between 2009 and 2010.

In response to external market impacts during that period, China introduced the iconic 4 trillion yuan stimulus planThis influx of capital led to significant market fluctuations, causing various asset prices to surge while the actual purchasing power of money drastically diminished.

This historical context provides us with a crucial reference point; facing a potential shift in policy, we might be at a new economic turning point

Continuing to hold cash without any asset allocation may expose us to the relentless risks of inflationThus, reevaluating and planning our asset configuration becomes exceedingly important.

Assuming we currently have 300,000 yuan in cash, how should we allocate it? Below is an analysis and suggestions for several major asset types.

1. Large Certificates of Deposit: Safe but Limited Returns

Compared to regular time deposits, large certificates of deposit (CDs) generally have a higher annualized interest rate despite the investment threshold

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For example, major state-owned banks offer a 1.5% annualized interest rate for a three-year time deposit, while a three-year large CD can reach 1.9%. However, as the central bank signals continued interest rate cuts, the annualized rates for large CDs are expected to dip below 2%. Presently, some small and medium-sized banks still offer rates above 2%, but such trends are unlikely to persist.

Thus, while large CDs are a decent choice from a safety and stability perspective, their returns are relatively low and may not meet expectations for asset appreciation.

2. Real Estate: Opportunities in Tier-One Cities, but High Barriers

The meeting explicitly mentioned "stabilizing the real estate market," signaling that more policies aimed at the property market may be forthcoming

In fact, signs of stabilization in quantity and price are already emerging in tier-one citiesFor example, data from October 2024 indicated a month-to-month increase in second-hand home prices in Shanghai, Beijing, and Shenzhen, with the rise in Beijing reaching 1%.

These figures suggest that investing surplus funds into the real estate market could yield unexpected benefits, particularly in tier-one and select strong tier-two citiesHowever, for the average individual, the price threshold for properties in first-tier cities is exceedingly high, with homes often costing millions of yuanEven a down payment may be inadequate with only 500,000 yuanMoreover, cities like Beijing and Shanghai continue to enforce purchasing restrictions, making the real estate market less accessible to ordinary citizens.

3. Stock Market: Long-Term Bullish Outlook, but High Risks

The stock market, as an essential component of the capital market, undoubtedly possesses immense potential

With the backdrop of sustained economic growth in China, there is still considerable room for stock price increases among many companiesThat said, the risks inherent in the stock market are equally apparentHistorical evidence shows that not many individuals succeed in turning a profit over a full market cycle.

Take the recent "bull market frenzy" at the end of September as an example; while many recouped their losses, new investors were often caught in unfavorable positions right after entering the marketSimilarly, after the meeting on December 9, which aimed to "stabilize the stock market," expectations for a significant rally did not materialize; instead, the market displayed an opening high followed by a declineThis further emphasizes that the stock market is not a place for easy profits but requires investors to possess extensive knowledge, experience, and patience.

4. Financial Products and Bond Funds: A Stable Yield Alternative

Financial products and bond funds are fundamentally similar, primarily composed of various types of bonds like national bonds, municipal bonds, and bank bonds

These products generally don't guarantee principal or interest but exhibit lower volatility and can yield stable returns over the long term.

For instance, I have invested in a bond fund for over three years now, yielding 12.21% in return during that periodAlthough this rate isn't extraordinarily high, it surpasses that of large CDs and similar deposit products and outpaces inflationMore importantly, these products do not require investors to devote extensive time and energy to market research.

5. Incremental Whole Life Insurance: A Good Long-Term Investment Choice

Incremental whole life insurance is a unique insurance product, primarily designed for investment rather than protection

Over the past few years, such products typically promised an annual compounded interest rate of around 4%. With the decline in market interest rates, current yield rates are significantly lower, typically only ensuring around 2.5% annualized returns.

Despite this, a guaranteed 2.5% return remains somewhat attractive in the context of ongoing declining ratesEspecially for those who can ensure that funds will not be accessed for the long term, this type of insurance can be a worthwhile considerationOf course, it's important to note that such products often require a very long investment horizon (at least 15–20 years); if one cannot guarantee long-term financial stability, caution should be exercised.

In conclusion, I have summarized the following points.

First, if financial constraints prevent investment in tier-one real estate, this option can be dismissed.

Second, although the stock market exhibits significant potential for appreciation, it also entails considerable risks

Individuals unable to predict market trends accurately should proceed with caution.

Lastly, for the remaining asset types, diversification based on personal circumstances is advisable.

1. Prioritize bond funds, allocating between 100,000 to 200,000 yuan; these products are relatively stable and can provide long-term returns.

2. If one can ensure that funds remain untouched for the long term, consider investing in some incremental whole life insurance, but always opt for products issued by major insurance companies.

3. The remaining funds can be placed in large CDs; for an investment under 500,000 yuan, opt for smaller banks to enjoy relatively higher rates.

In summary, amid the current economic landscape and policy environment, it is vital to reassess our asset allocation and make necessary adjustments