Xun Yugen: Stocks have long-term returns higher than other assets, with an annualized return rate of around 8-10% According to a report by Golden Finance on June 29th, Xun Yugen, Chief Economist of Guosen Securities, stated that global century long experience shows that stocks have long-term returns higher than other assets, with an annualized return rate of around 8-10%. As far as the long-term yield of China's major assets is concerned, the annualized yield of Vandequan A and CSI 300 (both considering dividends) from 2005 to 2025 was 10.6% and 9.9%, the annualized yield of real estate (considering rents) was 8.3%, the annualized yield of bulk commodities represented by CRB spot index was 4.8%, and the annualized yield of bonds measured by the China Bond treasury bond Total Index was 4.3%. The level of market return depends on fundamentals. At the macro level, the annualized returns of stock markets in various countries are positively correlated with GDP growth rate. At the micro level, the return rate of the stock market is mainly contributed by the profits and dividends of listed companies. Taking the stock markets of China and the United States as an example, the long-term returns and ROE of their main stock indices are basically similar. For example, the S&P 500 Total Return Index has an annualized return of 10.7% and a ROE central of 13.1% from 1960 to 2025, while the Shanghai and Shenzhen 300 Total Return Index has an annualized return of 9.9% and a ROE central of 12.6% from 2005 to 2025. Compared with the historical long-term yield level, the current Shanghai and Shenzhen 300 yield is relatively low, while the S&P 500, ChiNext Index, and Sci Tech Innovation 50 yield are relatively high. Among them, the ChiNext Index has achieved an annualized return rate of 18.4% since 2019, significantly higher than its annualized return rate of 9.7% since 2010 and a compound annual growth rate of 13.9% in net profit. In terms of industries, real estate, non banking, pharmaceuticals, food and beverage are relatively low, while electronics and communication are relatively high.