Core Viewpoint - The article discusses the ETF grid strategy, focusing on new economic sectors and financial sectors, highlighting investment opportunities in China's evolving economy and the financial market's recovery [3][4][6]. Group 1: New Economic ETF - The New Economic ETF (159822.SZ) aligns with the government's 2025 work report, emphasizing the development of new productive forces and the integration of technology and industry innovation [3]. - This ETF indirectly tracks the S&P China New Economy Index through full holdings in the ICBC South China S&P China New Economy Industry ETF (3167.HK), focusing on leading companies in artificial intelligence, internet, biotechnology, and innovative pharmaceuticals [3]. - The ETF aims to capture new growth drivers in China's economy while diversifying regional risks [3]. Group 2: Financial ETF - The Financial ETF (510230.SH) tracks the Shanghai Stock Exchange 180 Financial Index, with significant allocations in banking (62%), securities (20%), and insurance (18%) sectors [4][6]. - As of June 30, 2025, the banking sector's dividend yield reached 5.86%, surpassing the market average and the ten-year government bond yield, making it an attractive option for long-term funds [4]. - The securities sector saw a substantial increase in brokerage revenue, with a 50.69% year-on-year growth in H1 2025, indicating a recovery in sector performance [4][6]. - The insurance sector is expected to benefit from supportive policies, alleviating pressure on liabilities, while the stock investment balance of life insurance companies reached nearly 2.9 trillion yuan, a 50% year-on-year increase, suggesting a shift towards equity asset allocation [6].

Market Overview - The bond market experienced significant fluctuations last week (September 15-19, 2025), with the 1-year government bond yield decreasing by 1 basis point to 1.39%, while the 10-year and 30-year yields increased by 1.19 basis points to 1.88% and 1.56 basis points to 2.20%, respectively. The market sentiment improved in the first half of the week due to expectations of central bank bond purchases, but weakened in the latter half due to poor bond issuance results and other factors [3][16][17]. Public Fund Market Dynamics - On September 12, the National Index announced the launch of the National Index Free Cash Flow Market Bond Mixed Index series on September 17, which includes various indices with different asset allocation targets [4][19]. Fund Index Performance Tracking - The Money Enhanced Index rose by 0.03% last week, with a cumulative return of 4.07% since inception. The Short-term Bond Fund Index also increased by 0.03%, with a cumulative return of 4.20% [5][6][21]. - The Mid-to-Long-term Bond Fund Index saw a 0.04% increase, accumulating a return of 6.11%. Conversely, the Low Volatility Fixed Income + Fund Index decreased by 0.05%, with a cumulative return of 3.80% [7][8][9][10][21]. - The Convertible Bond Fund Index fell by 1.37%, but has a cumulative return of 19.22% since inception. The QDII Bond Fund Index increased by 0.11%, with a cumulative return of 10.13% [11][12][21]. REITs Market - The REITs market showed mixed performance, with the China Securities REITs Total Return Index rising by 0.12%. As of September 19, 2025, there have been 16 successful REITs issuances this year, totaling 33.65 billion yuan [13][18][21].

Group 1 - The core viewpoint of the article highlights the structural opportunities in the market, particularly for high-quality industry leaders with global competitiveness, amidst a backdrop of market fluctuations and sector-specific performance [3][14]. - The recent performance of the Shanghai Composite Index showed a decline of 1.30%, while the ChiNext Index rose by 2.34% and the Hang Seng Tech Index increased by 5.09%, indicating a divergence in market performance [14]. - The article emphasizes the potential for foreign capital to increase its holdings in Chinese assets, particularly if the Federal Reserve continues to lower interest rates in the fourth quarter [16]. Group 2 - In the resource sector, the valuation logic has shifted from cyclical to cash flow visibility due to supply constraints and geopolitical tensions, with a focus on long-term supply limitations [17]. - The photovoltaic sector is experiencing a rebound driven by policy support and demand elasticity, while energy storage companies are expected to benefit from improved Sino-US relations and sustained market demand [17]. - The active equity fund indices showed varied performance, with the active stock fund selection index rising by 0.80% last week, while the value stock fund selection index fell by 0.48% [5][6].

Key Points - The article discusses recent significant events in the economic and financial landscape, including a meeting between Chinese and U.S. trade leaders aimed at addressing trade issues and promoting cooperation [2] - It highlights a key article by Xi Jinping emphasizing the need to regulate low-price competition among enterprises, particularly in areas suffering from excessive competition [2] - The article notes the Federal Reserve's decision to lower interest rates by 25 basis points, marking the first rate cut of 2025, with expectations of further cuts later in the year [2] Group 1: Important Events Review - On September 14-15, Chinese and U.S. trade leaders held talks in Madrid, focusing on resolving TikTok-related issues and reducing investment barriers [2] - Xi Jinping's article published on September 16 stresses the importance of addressing disordered competition among businesses [2] - The Federal Reserve announced a 25 basis point rate cut on September 18, with projections for additional cuts in the near future [2]

Core Viewpoint - The article discusses investment opportunities in ETFs focusing on new economy sectors and national defense, highlighting the potential for growth driven by government policies and increased defense spending [3][5][6]. Group 1: New Economy ETF - The New Economy ETF (159822.SZ) aims to capitalize on China's focus on developing new productive forces and promoting technological innovation, as outlined in the 2025 government work report [3]. - This ETF indirectly tracks the S&P China New Economy Industry Index through full holdings in the ICBC South China S&P New Economy Industry ETF (3167.HK), covering leading companies in AI, internet, biotechnology, and innovative pharmaceuticals [3][4]. - The ETF is positioned to benefit from the ongoing industrial upgrade in China, which is characterized by the emergence of new growth drivers and the rejuvenation of traditional sectors [3]. Group 2: National Defense ETF - The National Defense ETF (512670.SH) is linked to China's increasing defense budget, which reached 1.81 trillion yuan in 2025, marking a 7.2% year-on-year increase, although still below 1.3% of GDP [5][6]. - The ETF tracks the CSI National Defense Index, focusing on core areas such as aviation equipment, missiles, and new materials, which are expected to benefit from improvements in the national defense sector [6]. - The article notes that the defense budget is anticipated to rise further as China approaches its 2027 military centenary goal, suggesting a positive outlook for the defense technology industry [5][6].

Core Viewpoints - The collaboration between small and medium-sized banks and wealth management subsidiaries is intensifying, serving as a crucial breakthrough for optimizing income structures and achieving strategic transformations [3][6] - The overall growth of the bank wealth management industry continues, with leading companies maintaining profitability while some smaller institutions, such as Ningyin and Hangyin, exhibit significant growth momentum [3][8] Regulatory and Industry Dynamics - The recent increase in the participation of small and medium-sized banks in wealth management product distribution indicates a strategic shift to enhance income and adapt to regulatory pressures [6][8] - Wealth management subsidiaries are expanding their distribution networks to include regional small and medium-sized banks, aiming to tap into broader market opportunities [6][7] - The top three wealth management subsidiaries by distribution channels are Xingyin Wealth Management (543), Hangyin Wealth Management (241), and Xinyin Wealth Management (205) [6] Performance of Returns - Cash management products recorded an annualized return of 1.29% for the week of September 8-14, 2025, a decrease of 1 basis point [13] - The annualized return for money market funds was reported at 1.17%, also down by 1 basis point [13] - The overall yield of fixed-income products has declined, influenced by the new public fund sales regulations and a strong equity market [14][15] Innovations in the Industry - Ningyin Wealth Management has successfully participated in public REITs, marking a significant step in leveraging policy benefits and asset distribution characteristics [9][10] - On September 10, 2025, Puyin Wealth Management launched a product linked to the "Pudong Bank - China Bond Credit Technology Innovation Bond Index," focusing on technology bonds [10][11] - The rapid expansion of the technology bond market is supported by favorable policies, with the index covering 514 bonds from 325 issuers across various strategic emerging industries [10][11]

Group 1 - The recent stock market has experienced increased volatility, while the bond market shows signs of improvement but remains oscillatory. The optimistic expectation for the resumption of government bond trading operations has contributed to this recovery, with the ten-year government bond yield dropping below 1.75% [2][5] - The market style has slightly shifted towards small-cap stocks, with growth styles prevailing. The volatility of market styles has increased, while the volatility of value and growth styles has decreased [7][8] - In the commodity market, the strength of the non-ferrous and energy chemical sectors has increased, while the trend strength of other sectors remains stable. The basis momentum across all sectors has decreased [3][20][23] Group 2 - In the options market, the implied volatility of the Shanghai Stock Exchange 50 index remains stable, while the implied volatility of the CSI 1000 index has begun to decline. The market experienced a brief pullback in early September, particularly affecting small-cap stocks, but current sentiment has eased [28] - The convertible bond market showed a relatively flat performance, with the index primarily oscillating. The premium rate for convertible bonds remains stable, and the proportion of low premium convertible bonds has not changed significantly [30]

Core Viewpoint - The A-share equity market has experienced a brief adjustment after approaching the high point of August 2025, but has rebounded and reached a new high for the year, indicating a strong upward trend despite short-term resistance [3][4]. Market Performance - The Shanghai Composite Index has shown strong performance since June 2025, quickly breaking through multiple hundred-point levels after short-term fluctuations. The market remains active with strong capital inflow intentions after corrections, suggesting limited downside potential [3][4]. - The market is currently at a critical resistance point, and strategies should focus on gradually accumulating positions during dips, anticipating a potential upward trend after consolidation [4]. Quantitative Strategy Allocation - The preferred strategy allocation is as follows: Equity Enhancement Strategy > Overseas Equity Strategy > Evergreen Low Volatility Strategy [4]. - The Evergreen Low Volatility Fund Strategy has shown stable performance, with a return of 1.387% this week, and has maintained a low volatility characteristic, outperforming the benchmark [10][11]. - The Equity Enhancement Fund Strategy recorded a return of 1.955% this week, with potential for alpha generation as market conditions improve [6][12]. Overseas Market Insights - The U.S. stock market has been buoyed by easing tariff expectations and strong earnings reports from tech companies, with a potential new interest rate cut cycle expected to provide further momentum [5][7]. - The Overseas Equity Allocation Fund Strategy has also performed well, with a return of 0.982% this week, indicating a recovery in the U.S. market following tariff negotiations [7][10]. Fund Performance Tracking - The Evergreen Low Volatility Fund has consistently outperformed the benchmark with a year-to-date return of 13.385% [10][11]. - The Cash Enhancement Fund Strategy has achieved a return of 0.027% this week, outperforming the benchmark index [10][14]. - The Overseas Equity Allocation Fund has accumulated significant excess returns since its inception, benefiting from global technology growth [17][21].

Market Overview - The bond market experienced continuous adjustments from September 8 to September 12, 2025, with the 1-year government bond yield rising by 0.41 basis points to 1.40%, the 10-year yield increasing by 4.1 basis points to 1.86%, and the 30-year yield up by 7.15 basis points to 2.18% [3][14] - The initial part of the week saw a rise in yields due to pessimistic sentiment in the bond fund market following the release of new regulations on public fund fees by the China Securities Regulatory Commission on September 5, 2025 [3][14] - The latter part of the week showed signs of stabilization in the bond market as the liquidity situation improved marginally [3][14] Public Fund Market Dynamics - On September 12, 2025, the National Development and Reform Commission issued a notice to enhance the regular application and recommendation process for infrastructure REITs, aiming to expand the market and optimize the application process [3][18] Fund Index Performance Tracking - The Money Market Enhanced Index rose by 0.03% last week, with a cumulative return of 4.05% since inception [4][20] - The Short-term Bond Fund Index fell by 0.01%, with a cumulative return of 4.18% since inception [5][20] - The Medium to Long-term Bond Fund Index decreased by 0.20%, with a cumulative return of 6.10% since inception [6][20] - The Low Volatility Fixed Income + Fund Index remained unchanged, with a cumulative return of 3.83% since inception [7][20] - The Medium Volatility Fixed Income + Fund Index increased by 0.22%, with a cumulative return of 5.09% since inception [8][20] - The High Volatility Fixed Income + Fund Index rose by 0.46%, with a cumulative return of 6.88% since inception [9][20] - The Convertible Bond Fund Index increased by 1.23%, with a cumulative return of 20.88% since inception [10][20] - The QDII Bond Fund Index rose by 0.66%, with a cumulative return of 10.01% since inception [11][20] - The REITs Fund Index fell by 1.02%, with a cumulative return of 36.19% since inception [11][20] Index Classifications - The Money Market Enhanced Index focuses on liquidity management and aims to outperform money market funds [21] - The Short-term Bond Fund Index emphasizes liquidity management while ensuring drawdown control [22] - The Medium to Long-term Bond Fund Index seeks stable returns while controlling drawdowns [25] - The Low Volatility Fixed Income + Index targets a 10% equity center and selects funds with a low risk-return profile [28] - The Medium Volatility Fixed Income + Index targets a 20% equity center and selects funds with moderate risk-return profiles [30] - The High Volatility Fixed Income + Index targets a 30% equity center and selects funds with higher risk-return profiles [31] - The QDII Bond Fund Index focuses on overseas bonds and includes a mix of investment-grade and high-yield products [36] - The REITs Fund Index selects funds based on stable cash flows from quality infrastructure projects [37]

Market Overview - The A-share market experienced a rebound last week (September 8-12, 2025), with the Shanghai Composite Index rising by 1.52%, the Shenzhen Component Index by 2.65%, the Sci-Tech 50 by 5.48%, and the ChiNext Index by 2.10% [3][17] - The average daily trading volume in A-shares was 2.33 trillion yuan, showing a decrease compared to the previous week [3][17] - The technology growth sector was boosted by optimistic guidance from Oracle's earnings, leading to a recovery in market sentiment [3][17] Sector Analysis AI Computing - Within the AI sector, several sub-sectors remain at relatively low levels due to limited short-term catalysts and insufficient bullish narratives [4][19] - Potential future catalysts include technological breakthroughs or new standout products, which could significantly enhance investment returns in areas like storage and AI applications [4][19] Solid-State Batteries - The solid-state battery sector is characterized by a combination of demand-driven and technology-driven growth [20] - The market is expected to see increased activity as leading companies disclose advancements in solid-state products, particularly for use in electric vehicles [20] Fund Market Dynamics - In the first half of 2025, the top 100 fund distribution institutions reported a total equity and non-cash asset scale of 5.14 trillion yuan and 10.20 trillion yuan, respectively, reflecting growth of 6% and 7% since the beginning of the year [21][22] - The growth in the fund market is heavily concentrated in passive investment products, while active fund scales have seen limited growth due to client redemption behaviors [21][22] Active Equity Fund Index Performance - The Active Equity Fund Index rose by 2.41% last week, achieving a cumulative excess return of 12.88% since inception [6] - The Growth Stock Fund Index saw a weekly increase of 3.75%, with a cumulative excess return of 15.78% since inception [9][34] - The Technology Stock Fund Index increased by 3.55%, with a cumulative excess return of 19.94% since inception [12][43]