Investment Rating - The report maintains an "Outperform" rating for the chemical industry [3] Core Insights - The report highlights that the chemical industry in China has become the largest producer and consumer of petrochemical products globally, with the added value of the petrochemical industry expected to account for 14.9% of industrial output in 2024, growing at a rate of 6.6%, which is 0.8 percentage points higher than the industrial average [61][62] - The report emphasizes the need for transformation in the industry due to increasing competition and declining profitability, with total profits expected to drop from 1.16 trillion yuan in 2021 to 789.7 billion yuan in 2024, a decline of over 30% [62][64] Summary by Sections Macroeconomic Data - The September PMI stands at 49.8%, an increase of 0.4 percentage points from the previous month. The main raw material purchasing price index decreased by 0.1 percentage points to 53.2% [33][38] - The PPI for August showed a year-on-year decline of 2.9%, with the decline narrowing by 0.7 percentage points compared to the previous month [33][38] - Fixed asset investment in the chemical raw materials and chemical products manufacturing sector saw a year-on-year decline of 5.2% in August, while the chemical fiber manufacturing sector experienced a growth of 9.3% [33][38] Raw Material Prices - The average price of WTI crude oil in September was $63.57 per barrel, down 0.67% from the previous month, while NYMEX natural gas prices increased by 4.15% to $3.01 per million British thermal units [45][46] - The average price of Qinhuangdao 5500K thermal coal rose by 0.90% to 676 yuan per ton [45][46] Downstream Industries - In August, the export value of textile yarns and fabrics increased by 1.5% year-on-year, while the production of new energy vehicles rose by 22.7% [54][60] - The construction area of newly started real estate projects saw a year-on-year decline of 19.5% [54][60] Investment Recommendations - The report suggests focusing on the Penghua CSI Sub-Sector Chemical Industry Theme ETF (159870.SZ) as a key investment opportunity [69]

Report Industry Investment Rating - Not mentioned in the provided content Core Viewpoint - The report is a weekly market tracking of the ETF market from September 8 to September 14, 2025, focusing on market trends, issuance dynamics, and performance of different types of ETFs [1][2] Summary by Directory This Week's Market Quotes - The CSI 300 rose 1.38% this week, compared to a -0.81% decline last week; the SSE 50 rose 0.89%, compared to a -1.15% decline last week; the CSI 500 rose 3.38%, compared to a -1.85% decline last week; and the ChiNext Index rose 2.10%, compared to a 2.35% increase last week [7] - Stock - type ETFs had a total scale of 35,255 billion yuan, with a weekly scale change of 737.8 billion yuan; bond - type ETFs had a scale of 5,725 billion yuan, with a weekly scale change of - 41.2 billion yuan; and commodity - type ETFs had a scale of 1,614 billion yuan, with a weekly scale change of 57.5 billion yuan [11] ETF Market Overview - As of September 12, 2025, there were 572 underlying assets in the market, with an average daily margin trading purchase of 240.5 billion yuan and a margin trading balance of 1,042.2 billion yuan [13] ETF Issuance Dynamics - There are multiple ETFs pending issuance, such as the Invesco Great Wall Hang Seng Hong Kong Stock Connect 50 ETF and the Tianhong Hang Seng Technology ETF [19] - There are also multiple ETFs pending approval, including the Harvest CSI Sub - chemical Industry Theme ETF and the Tianhong China Securities Hong Kong Stock Connect Technology ETF [21] Equity - type ETF Overview (by Scale and Industry Index) - For the Science and Technology Innovation 50 Index, the corresponding ETF scale was 1735.23 billion yuan, with a weekly scale change of 3.08 million yuan and a weekly decline of 5.85% [26] Equity - type ETF - Scale Category - In terms of scale, the top 10 ETFs include the Huatai - Peregrine SSE 50 ETF and the E Fund SSE 300 ETF [29] - In terms of weekly trading volume, the top 10 ETFs include the E Fund ChiNext ETF and the Huaxia SSE STAR Market 50 Component ETF [29] Equity - type ETF - Industry Category - The top 10 in terms of scale include the Guotai CSI All - Index Securities Company ETF and the Huabao CSI Bank ETF [34] - The top 10 in terms of weekly trading volume include the Guotai CSI All - Index Securities Company ETF and the Huabao CSI Bank ETF [34] Equity - type ETF - Strategy Category - The top 10 in terms of scale include the Huatai - Peregrine SSE Dividend ETF and the Dividend Low - Volatility ETF [38] - The top 10 in terms of weekly trading volume include the Huatai - Peregrine SSE Dividend ETF and the Dividend Low - Volatility ETF [38] Equity - type ETF - Style Category - The top 10 in terms of scale include the Huaxia Growth ETF and the E Fund China Securities Value ETF [41] - The top 10 in terms of weekly trading volume include the Huaxia Growth ETF and the E Fund SSE STAR Market Growth ETF [41] Equity - type ETF - Theme Category - The top 10 in terms of scale include the Harvest SSE STAR Market Chip ETF and the Huabao CSI Medical ETF [45] - The top 10 in terms of weekly trading volume include the Harvest SSE STAR Market Chip ETF and the Guotai CSI All - Index Communication Equipment ETF [45] Bond - type ETF - The top 10 in terms of scale include the Haifutong CSI Short - Term Financing ETF and the Bosera Convertible Bond ETF [48] - The top 10 in terms of weekly trading volume include the Haifutong CSI Short - Term Financing ETF and the Bosera Convertible Bond ETF [48]

1. Report Industry Investment Rating There is no information provided regarding the report's industry investment rating in the given content. 2. Core Viewpoints of the Report - The overall ETF market had a net inflow of approximately 7.2 billion yuan in subscriptions and redemptions last week, with cross - border ETFs having a significant net inflow, while stock - type ETFs had a net outflow [3][28]. - The stock market had a general upward trend last week, with the Shanghai Composite Index rising by 1.52%, and sectors such as electronics and real estate leading the gains, while sectors like comprehensive and banking had negative returns [2][11]. - The average daily trading volume of the Shanghai and Shenzhen stock markets decreased by about 11% compared to the previous week, but the margin trading balance reached a new high [2][10]. 3. Summary by Directory I. Market Overall Situation - **Interest Rates**: China's 10 - year Treasury bond yield slightly increased last week, reaching 1.87% on Friday, and was in a low - level consolidation, consistent with the copper - gold ratio. The US 10 - year Treasury bond yield slightly decreased, reaching 4.06% on Friday [10]. - **Trading Volume and Margin Trading**: The average daily trading volume of the Shanghai and Shenzhen stock markets was 2.2945 trillion yuan, a decrease of about 11% from the previous week. The margin trading balance reached about 2.3349 trillion yuan, a new high, and the average maintenance margin ratio was 286% [2][10]. - **Newly Issued ETFs**: A total of 8 stock - type ETFs were newly issued last week, with a total issuance scale of approximately 6.017 billion shares [10]. - **Stock Market Index and Sector Performance**: The Shanghai Composite Index rose by 1.52%, and most broad - based indexes showed an upward trend. Among the Shenwan primary industries, electronics and real estate led the gains, while comprehensive and banking sectors had negative returns. The congestion indicator of the power equipment industry continued to give a warning [2][11]. II. Capital Inflow into Battery ETF (1) Continuous Net Outflow of Stock Broad - Based ETFs, and Capital Inflow into Hong Kong Internet and Innovative Drug Concepts - **Overall ETF Market Capital Flow**: The overall ETF market had a net inflow of about 7.2 billion yuan in subscriptions and redemptions. Bond - type ETFs had a net inflow of about - 2.9 billion yuan, cross - border ETFs had a net inflow of about 21 billion yuan, and stock - type ETFs had a net outflow of about 4.6 billion yuan. Among stock - type ETFs, broad - based ETFs had a net outflow of about 21.7 billion yuan, while stock (industry) ETFs had a net inflow of about 11.6 billion yuan, and stock (theme) ETFs had a net inflow of about 6.4 billion yuan [3][28]. - **Specific ETF Capital Flow**: The Science and Technology Innovation 50 ETF had a net outflow of funds last week. Brokerage and chemical ETFs continued to have net inflows, and Hong Kong Internet and innovative drug concept ETFs also had net inflows. The gold ETF rose by 2.30% last week [28]. (2) Capital Inflow into Battery ETF Last Week - **ETF Capital Inflow Ranking**: The top 10 ETFs with net capital inflows last week included Hong Kong Stock Connect Internet ETF, Hong Kong Innovative Drug ETF, and Battery ETF. The top 10 ETFs with net capital outflows included Science and Technology Innovation 50 ETF, CSI 1000 ETF, and Science and Technology Innovation Chip ETF [39][41]. (3) Overview of Newly Listed and Proposed - to - be - Listed ETFs - **Newly Listed ETFs**: A total of 4 ETF funds were listed for trading last week, with a total share of approximately 2 billion shares [3][44]. - **Proposed - to - be - Listed ETFs**: There were 12 ETFs that had completed fundraising and were waiting to be listed, with a total share of approximately 7.9 billion shares [3][44].

Economic Indicators - August CPI decreased by 0.4% year-on-year, while PPI fell by 2.9% year-on-year[15] - August manufacturing PMI stood at 49.4, indicating a slight contraction in the manufacturing sector[14] - Exports in August grew by 4.4% year-on-year, down from 7.2% in the previous month[15] Market Trends - Social financing growth rate has declined for the first time since October last year, indicating weak overall demand[1] - The 10-year government bond yield briefly exceeded 1.8%, suggesting a potential buying opportunity[1] - The bond market is expected to benefit from continued monetary easing as the economic fundamentals remain under pressure[1] Policy Developments - The government is expected to implement new policies to support the bond market, including early issuance of local government debt limits for 2026[21] - The State Council has approved the establishment of a national-level nature reserve, reflecting ongoing environmental policy initiatives[9] External Environment - The U.S. and Europe are discussing new sanctions against Russia, which may introduce uncertainties in external demand[1] - Global central banks' gold reserves have surpassed U.S. Treasury holdings, indicating a shift in reserve asset preferences[18]

1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Core Viewpoints of the Report - The convertible bond index leads the market, while the science - innovation bond index and the benchmark market - making credit bond index continue to decline with negative stage returns. Convertible bond - related ETFs lead the gains, and short - term financing ETFs achieve positive returns in the current period, while the current yields of other credit bond ETFs are negative [2][8]. - The second batch of science - innovation bond ETFs are being issued. The issuance of bond index sample bonds in the primary market shows differentiation, and the trading volume of convertible bond - related index component bonds is the largest in the secondary market [2][23]. - Looking ahead, the equity market is favored in the long term. Although convertible bond - related ETFs may fluctuate in the short term, they are still favored in the long term. It is recommended to pay attention to Convertible Bond ETF (511380.SH) and CSI Short - Term Financing (511360.SH) [48]. 3. Summary by Relevant Catalogs Market Conditions - **Bond Index Market Conditions**: The convertible bond index outperforms, with the CSI Convertible Bond and Exchangeable Bond Index and the Shanghai Investment - Grade Convertible Bond and Exchangeable Bond Index rising 1.02% and 0.54% respectively in the past two weeks, and 15.81% and 11.32% year - to - date. Most pure - bond indices decline due to market volatility and the stock - bond seesaw effect [8]. - **Bond ETF Market Conditions**: Convertible bond - related ETFs lead the gains, with Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) rising 0.89% and 0.44% respectively. Short - term financing ETF (511360.SH) gets a positive return of 0.04%. Most credit bond ETFs are in a discount state, indicating weak market sentiment [10]. - **Bond ETF Unit Net Value**: The unit net value of convertible bond - related ETFs shows an upward - fluctuating trend, not falling below 13 yuan in the past two weeks. The net value of science - innovation bond - related ETFs fluctuates downward, and that of benchmark market - making credit bond ETFs also declines [13]. - **Bond ETF Fund Flows**: Short - term financing ETFs have continuous net inflows. The subscription scale of Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) decreases by 7.26 billion yuan. The trading volumes of science - innovation bond ETFs and short - term financing ETFs are relatively large, and the turnover rates of some science - innovation bond ETFs are high [16]. Credit Bond ETF Overview - Convertible Bond ETF (511380.SH) and Short - Term Financing ETF (511360.SH) have scales exceeding 60 billion yuan. The growth rate of science - innovation bond - related ETFs slows down, with a scale of 123.646 billion yuan. The scale of benchmark market - making credit bond ETFs ranks first, at 124.602 billion yuan [20]. - The annualized yields of Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) are 25.38% and 18.24% respectively. The highest annualized yield among pure - bond ETFs is 1.53% for Short - Term Financing ETF (511360.SH), and all science - innovation bond - related ETFs have negative annualized yields since July [20]. Credit Bond ETF Application, Issuance, and Dynamics On August 20, fourteen fund companies collectively submitted 14 science - innovation bond ETFs for the second batch, which were approved on September 8 and issued on September 12, tracking high - credit - rating science - innovation bond indices [23]. Primary Market - **Primary Issuance of Important Bond Index Sample Bonds**: Short - term financing and Shanghai market - making corporate bonds have the largest issuance volume and scale, at 69.163 billion yuan and 65.424 billion yuan respectively. The weighted average coupon rate of Shanghai Urban Investment Bond Index sample bonds is 2.34%, ranking first [27]. - **Primary Issuance of Important Bond Index Sample Bonds This Year**: In early September, the issuance of Shanghai Urban Investment Bond Index sample bonds accelerated, with most sample bonds having higher issuance rates and shorter terms. The issuance of important bond index sample bonds slowed down, but the issuance scale of Shanghai Urban Investment Bond sample bonds was close to that of last month, while the issuance scale of CSI Short - Term Financing sample bonds was only 22.91% of last month [28]. Secondary Market - **Trading of Important Bond Index Component Bonds**: The trading volume of convertible bond - related index component bonds is the largest, with a total of 926.721 billion yuan for the CSI Convertible Bond and Exchangeable Bond Index and the Shanghai Investment - Grade Convertible Bond and Exchangeable Bond Index. The Shanghai Urban Investment Bond Index component bonds are traded at a premium, with a closing deviation of - 7.23bp [33]. - **Spreads of Important Credit Bond Indices**: The Shanghai Urban Investment Bond Index has the highest credit spread, but it is less than 36bp. The yields of several important bond indices have been rising oscillatingly, and the valuation yield of the Shanghai Urban Investment Bond Index is significantly higher than others [36]. Credit Events and Market News - **Postponed/Cancelled Bond Issuances**: In the past two weeks, 11 bonds with a planned issuance amount of 6.133 billion yuan were cancelled, including 8 for the inter - bank market and 3 for the Shanghai Stock Exchange [44]. - **Market News**: The Ministry of Finance will advance the quota of new local government debt in 2026, use the debt - resolution quota in advance, and take multiple measures to resolve existing implicit debts. As of the end of June 2025, over 60% of financing platforms have exited [45][47]. Investment Recommendations Considering the fundamentals, capital situation, and stock - bond market, it is recommended to pay attention to Convertible Bond ETF (511380.SH) and CSI Short - Term Financing (511360.SH) [48].

Investment Rating - The report maintains an "Outperform" rating for the military industry, indicating a positive outlook compared to the broader market [2]. Core Insights - The military industry is showing signs of a fundamental turning point, with the upstream military electronics sector being the first to benefit from the recovery [1][4]. - In the first half of 2025, the military industry saw a total revenue of CNY 254.55 billion, an increase of 9.3% year-on-year, while net profit attributable to shareholders decreased by 1.1% to CNY 15.53 billion [3][9]. - The overall gross margin for the military industry was 18.7%, up 0.6 percentage points from the previous year, while the net margin improved by 2.6 percentage points to 6.3% [13]. Summary by Relevant Sections Aerospace Equipment Sector - The aerospace equipment sector reported a revenue of CNY 108.09 billion, down 7.5% year-on-year, with a net profit of CNY 7.29 billion, a decline of 20.1% [17][18]. - The revenue drop was primarily due to significant declines in two major manufacturers, AVIC Shenyang Aircraft and Aero Engine Corporation of China, as they shifted focus to future orders [17]. Space Equipment Sector - The space equipment sector's revenue was CNY 9.22 billion, down 15.3% year-on-year, while net profit fell by 49.5% to CNY 356 million [23][24]. - The sector experienced a reduction in revenue decline compared to the previous year, indicating some stabilization [23]. Ground Armament Sector - The ground armament sector achieved a revenue of CNY 12.73 billion, a growth of 26.6% year-on-year, with a slight net profit decrease of 2.2% to CNY 444 million [25][26]. - Notable growth was seen in companies like North Navigation, which reported a revenue increase of 481.2% [25]. Marine Equipment Sector - The marine equipment sector generated CNY 55.75 billion in revenue, a 12.6% increase, with net profit soaring by 107.9% to CNY 3.74 billion [27][28]. - The growth was driven by leading shipbuilding companies benefiting from a high international ship market [28]. Military Electronics Sector - The military electronics sector reported a revenue of CNY 68.76 billion, a significant increase of 51.1% year-on-year, with a net profit of CNY 3.70 billion, up 2.2% [3][4]. - This sector was the first to benefit from the overall industry recovery, reflecting a strong demand for components [3]. Investment Recommendations - The report suggests focusing on specific sub-sectors for investment opportunities, including the aircraft and aero-engine supply chain, missile and unmanned combat systems, and military trade-related companies [4]. - Recommended ETFs include the Fortune CSI Military Leaders ETF and the Guotai CSI Military ETF [4].

Core Insights - The report emphasizes a strategy based on sector rotation and thematic ETFs, suggesting a focus on sectors like chemical pharmaceuticals, semiconductors, and aerospace equipment for the upcoming week [2][3]. - The model portfolio has shown a cumulative net return of approximately 3.12% for the period from September 8 to September 12, 2025, outperforming the CSI 300 ETF by about 1.65% [4]. Sector Recommendations - The report recommends increasing holdings in the following ETFs: - Sci-Tech Chip Design ETF - Traditional Chinese Medicine ETF - Biomedicine ETF - Continued holdings are suggested for: - Pharmaceutical ETF - Aerospace ETF - Satellite ETF [3][12]. Performance Tracking - Since October 14, 2024, the strategy has achieved a cumulative return of approximately 25.17%, with an excess return of about 6.13% compared to the CSI 300 ETF [4]. - The average return of the ETF portfolio for the recent week was 3.12%, with a notable excess return of 1.65% over the CSI 300 ETF [13]. ETF Holdings and Signals - The report details specific ETFs and their respective weights, indicating a continued hold or adjustment based on market signals: - Pharmaceutical ETF (58.63% weight) - continue holding - Semiconductor ETF (96.38% weight) - newly added - Aerospace ETF (58.23% weight) - continue holding - Satellite ETF (32.59% weight) - continue holding [12][13]. Market Timing Signals - The timing signals for the ETFs are based on volume and price indicators, with values of 1 indicating bullish signals, 0 neutral, and -1 bearish [4].

Investment Rating - The report maintains an "Outperform" rating for the smart technology industry, indicating a positive outlook for investment opportunities in this sector [1]. Core Insights - The smart technology industry is experiencing a performance turnaround, driven by favorable market conditions and advancements in AI technology, leading to a high level of industry prosperity [1][2]. - The report highlights strong performance in AI, fintech, and gaming ETFs, with significant capital inflows reflecting investor confidence in the long-term growth potential of these sectors [2][10]. Summary by Sections Market Review - Since the beginning of 2025, AI-themed ETFs have shown remarkable growth, with the following performance: - Huabao AI ETF (159363) up 77.86% - AI ETF (515980) up 74.59% - Sci-Tech AI ETF (588790) up 66.57% - The gaming ETF (159869) has increased by 47.45%, benefiting from industry recovery and new game releases [2][14]. - The fintech ETF (159851) has risen by 40.09%, supported by the acceleration of digital transformation in finance [2][14]. Mid-Year Performance - AI sector indices, represented by 970070.CNI, have a total ETF product scale of 76.03 billion, with notable revenue growth from key stocks: - New Yisheng: +282.64% YoY revenue growth - Changxin Bochuang: +1121.2% YoY net profit growth [3][26]. - Gaming sector indices, represented by 930901.CSI, have a total ETF product scale of 96.06 billion, with key stocks showing: - Guangxian Media: +143% YoY revenue growth - Youzu Network: +989.31% YoY net profit growth [3][26]. - Fintech sector indices, represented by 930986.CSI, have a total ETF product scale of 148.17 billion, with: - Guiding Compass: +59.17% YoY revenue growth - Hengsheng Electronics: +771.57% YoY net profit growth [3][26]. AI Sector Insights - The AI Agent is positioned as a core form of commercialization, benefiting from both policy support and technological breakthroughs, with significant growth potential across the industry chain [26][27]. - The report identifies five main AI indices, including 931071.CSI and 970070.CNI, which capture investment opportunities across the AI technology spectrum [27][28]. Gaming Sector Insights - The gaming industry is recovering due to the release of high-quality games and normalization of licensing, with expectations for continued strong performance driven by new game launches [14][26]. Fintech Sector Insights - The fintech sector is experiencing robust demand driven by accelerated digital transformation, with significant potential for efficiency improvements and business innovation in the AI era [14][26].

Investment Rating - The report indicates a positive investment rating for the aerospace, military electronics, semiconductor, and automation equipment sectors, with specific ETFs recommended for investment [3][11]. Core Insights - The strategy focuses on constructing a portfolio based on industry and thematic ETFs, leveraging quantitative analysis of industry style continuity and rotation [2]. - The strategy's cumulative net return from September 1 to September 5, 2025, was approximately -1.74%, with an excess return of -0.72% compared to the CSI 300 ETF [3][9]. - Since October 14, 2024, the strategy has achieved a cumulative return of about 21.38%, outperforming the CSI 300 ETF by approximately 4.00% [3]. Summary by Sections Strategy Update - The report outlines a strategy update based on previous reports, focusing on industry rotation and ETF combinations [2]. - The ETFs recommended for the upcoming week include aerospace, central enterprise technology, and central enterprise innovation ETFs, while continuing to hold satellite, pharmaceutical, and film ETFs [11]. Performance Tracking - The report provides performance tracking data, indicating that the average return of the ETF portfolio was -1.74% during the specified period, with a notable underperformance compared to the CSI 300 ETF [3][9]. - The report highlights specific ETFs and their market values, along with their weekly performance, indicating adjustments in holdings based on market signals [3][9].

Market Overview - China's 10-year Treasury yield remained flat at 1.83% last Friday while the US 10-year Treasury yield declined to 4.10% [1][9] - The average daily trading volume of the Shanghai and Shenzhen stock markets was RMB 2567.2 billion, down about 13% from the previous week. The margin trading balance reached a record high of about RMB 2271.3 billion on Friday [1][9] - Newly issued equity ETFs totaled 3 with a combined issuance size of about 1.32 billion shares last week [9] - The Shanghai Composite Index dropped 1.18%, the ChiNext Index rose 2.35%, and the STAR 50 Index fell 5.42%. Among the Shenwan primary industries, power equipment and comprehensive sectors led the gains while national defense and military industry and computer sectors declined significantly [1][10] - The congestion indicator of the power equipment industry issued a warning last week [10] ETF Market Overall Situation - The overall ETF market had a net inflow of about RMB 47.7 billion in subscriptions and redemptions last week. Bond ETFs had a net inflow of about RMB 11.3 billion, cross-border ETFs about RMB 13.4 billion, and equity ETFs about RMB 1.9 billion [2][24] - A total of 11 ETF funds were listed for trading with a combined share of about 7.6 billion, and 8 ETFs with a combined share of about 4 billion were awaiting listing [2] Equity ETFs - Broad-based ETFs had a net outflow of about RMB 21.4 billion, with ChiNext ETFs and STAR 50 ETFs experiencing net outflows. Industry and theme ETFs such as securities and chemical ETFs had continued net inflows, as did Hong Kong technology and securities concept ETFs [2][24] - Gold ETFs rose 3.78% last week due to increased expectations of a Fed rate cut this month [2][24] Newly Listed and Pending ETFs - 11 ETFs were listed last week with a total share of about 7.6 billion, and 8 ETFs with a total share of about 4 billion were waiting to be listed [2][39]