Investment Rating - The report does not explicitly provide an investment rating for the industry [3] Core Insights - The implementation of the new public offering sales regulations by the China Securities Regulatory Commission (CSRC) aims to standardize sales practices, reduce investor costs, and promote long-term investment strategies [4][11] - The launch of the new direct connection system by China Everbright Bank Wealth Management marks a significant step in the industry’s standardization efforts, enhancing data reporting accuracy and efficiency [13][16] - The cash management products recorded a 7-day annualized yield of 1.35%, reflecting a 5 basis points increase week-on-week, while money market funds saw a slight decline [17][21] - The overall bond market exhibited a volatile trend, with the 10-year government bond yield remaining stable at 1.84% and the 30-year yield increasing by 3 basis points to 2.25% [19][28] - The report highlights a decrease in the net asset value (NAV) ratio of bank wealth management products to 0.86%, down by 0.15 percentage points, indicating a potential increase in redemption pressure if credit spreads continue to widen [28][32] Summary by Sections Regulatory and Industry Dynamics - The CSRC's new sales fee management regulations are set to take effect on January 1, 2026, marking the completion of the third phase of fee reform in the public fund industry [4][11] - The new direct connection system by China Everbright Bank enhances the efficiency of product and investor information registration, contributing to the overall transparency of the wealth management sector [13][16] Yield Performance - Cash management products showed a week-on-week increase in annualized yield, while money market funds experienced a slight decline, indicating a shift in investor preferences [17][21] - The bond market remains under pressure due to various factors, including monetary policy expectations and government bond supply dynamics [19][22] NAV Tracking - The bank wealth management products' NAV ratio decreased, suggesting potential challenges ahead if credit spreads continue to widen, which could lead to increased redemption pressures [28][32]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2025, the equity market showed an upward trend with significant fluctuations. The CSI All-Share Index recorded a 24.60% annual return, and the Shanghai Composite Index climbed to around 4000 points. The Evergreen Low-Volatility Strategy maintained low volatility and achieved nearly 15% return, while the Stock Fund Enhancement Strategy was limited by balanced fund selection but could still optimize the risk-return ratio. The Overseas Equity Allocation Strategy recorded a 13.98% return [3]. - The quantitative strategy allocation preference is Stock Fund Enhancement Strategy > Evergreen Low-Volatility Strategy > Overseas Equity Strategy. The report is optimistic about A-share investment opportunities, suggesting active short - term layout. The Evergreen Low-Volatility Strategy can be used as a base position, and the Overseas Equity Strategy still has some allocation value but with more risk points [4]. 3. Summary by Relevant Catalogs 3.1 Quantified Strategy Allocation Viewpoints - A-shares: The report is bullish on A-share investment opportunities. The Shanghai Composite Index has exceeded 4000 points, and the trading volume has increased in 2026. The market is expected to break through further in the spring offensive. The Stock Fund Enhancement Strategy is more attractive, and the Evergreen Low-Volatility Strategy can be used as a base position [4]. - Overseas market: After recovering from the tariff shock, the upward momentum of the overseas market has weakened and differences have increased. Although there is still some allocation value in the short term, there are many risk points, and the overall cost - effectiveness is slightly lower than that of A-share strategy combinations [4]. 3.2 Performance of Equity Fund Strategy Indexes - Evergreen Low-Volatility Fund Strategy Index: This week's return was -0.705% with an excess return of 0.283%. The one - month return was 0.717% with an excess return of -1.293% [5]. - Stock Fund Enhancement Fund Strategy Index: This week's return was -0.229% with an excess return of 0.759%. The one - month return was 2.294% with an excess return of 0.284% [5]. - Cash Enhancement Fund Strategy Index: This week's return was 0.019%, outperforming the CSI Money Fund Index with a cumulative excess return of 0.569% since the strategy's operation [5]. - Overseas Equity Allocation Fund Strategy Index: This week's return was -0.137% with an excess return of 0.186%. The one - month return was 1.834% with an excess return of -1.417% [5]. 3.3 Tool - based Fund Portfolio Performance Tracking - Evergreen Low-Volatility Fund Portfolio: It has maintained low volatility and small drawdowns, significantly outperforming the CSI Active Equity Fund Index. It has both defensive and offensive characteristics [13]. - Stock Fund Enhancement Fund Portfolio: Since the strategy has been running for a short time, its performance is similar to that of the CSI Active Equity Fund Index. It is expected to have stronger elasticity in an improved market environment [16]. - Cash Enhancement Fund Portfolio: After double screening, it has continuously outperformed the benchmark, with a cumulative excess return of over 0.41% since July 2023 [17]. - Overseas Equity Allocation Fund Portfolio: Since July 2023, in the context of the Fed's interest - rate cut cycle and the boost of AI technology, it has accumulated high - level excess returns, which can thicken the return of the equity investment portfolio [20]. 3.4 Tool - based Fund Portfolio Construction Ideas - Evergreen Low-Volatility Fund Portfolio: It aims to select funds with long - term stable returns in high - equity - position actively managed funds. By adding restrictions on fund valuation levels, it constructs a low - volatility active equity fund portfolio from the perspectives of net value performance and position characteristics [22][25]. - Stock Fund Enhancement Fund Portfolio: It aims to meet the needs of equity fund investors with different risk preferences. By analyzing the source of fund returns and constructing a portfolio based on the significant continuity of Alpha returns, it is expected to bring excess performance [23][26]. - Cash Enhancement Fund Portfolio: By constructing a money fund screening system, it helps investors select money funds with better returns, optimize the income of short - term idle funds, and reduce income volatility risks [23][27]. - Overseas Equity Allocation Fund Portfolio: Based on long - and short - term technical indicators and comprehensive index momentum and reversal effects, it selects QDII equity funds corresponding to overseas equity indexes to build a portfolio, meeting the needs of global allocation [24][28].

Group 1: Grid Trading Strategy Overview - The essence of "grid trading" is a high buy low sell strategy, which does not predict market trends but utilizes natural price fluctuations to generate profits, suitable for frequently fluctuating markets [3][13] - Characteristics of suitable grid trading targets include: selecting on-market targets, stable long-term trends, low trading costs, good liquidity, and high volatility, with equity ETFs being relatively suitable for grid trading [3][13] Group 2: ETF Grid Strategy Target Analysis - **Game ETF (159869.SZ)**: The normalization of domestic game license issuance has reached a seven-year high, with 1771 licenses issued in 2025, over 20% growth from 2024. The overseas market for Chinese games saw a revenue of $9.501 billion in the first half of 2025, a year-on-year increase of 11.07%, indicating strong overseas growth potential [4][14] - **Securities ETF Leader (159993.SZ)**: The high market activity has catalyzed the performance release of brokerage firms, with the A-share market achieving a record trading volume of 420.21 trillion yuan in 2025, a 62.64% year-on-year increase. The financing balance reached 25,385.25 billion yuan, up 36.91% from the end of 2024, indicating significant performance improvement in the securities industry [4][17] - **Asia-Pacific Selected ETF (159687.SZ)**: The Asia-Pacific region is characterized by high growth and structural transformation, with an expected economic growth rate of 5.1% in 2025, contributing about 60% of global economic growth. The region is embracing green and digital revolutions, transitioning from a "world factory" to a "main engine" of global economic growth [4][6][19] - **Dividend Quality ETF (159758.SZ)**: This ETF balances cash dividend capability and profit growth quality, with policies promoting regular dividends and encouraging long-term capital inflows, enhancing the investment value of high-dividend assets [4][7][20]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The slow rise of the index since mid - December is a pre - emptive pricing driven by funds' forward - looking layout for 2026 investments, with high expectations for the cross - year market. In the short term, the market may be affected by overseas factors such as US geopolitical frictions and re - inflation expectations. If US inflation and the job market remain resilient, the overly optimistic Fed rate - cut expectations may be revised, affecting the domestic technology - growth style. Otherwise, the stock market may continue to rise in a volatile manner [3][11]. - In the medium term, global liquidity is expected to be in a state of resonant easing. The US may use re - inflation to resolve its huge debt, and its monetary policy is likely to be loose. In China, the monetary policy focuses on cross - cycle adjustment, and after the Spring Festival, fiscal policy is expected to be implemented in advance, with pro - cyclical styles having potential for a supplementary rise [12]. - The bond market last week was sluggish, with yields on various - term government bonds rising. There are both positive and negative factors in the future. The bond market is recommended to be treated with a neutral and volatile mindset [4][14]. - On December 31, 2025, the CSRC officially released the "Regulations on the Management of Sales Fees of Publicly Offered Securities Investment Funds", marking the official completion of the three - stage fee reform in the public fund industry [4][16]. 3. Summary by Relevant Catalogs 3.1 Weekly Market Observation 3.1.1 Equity Market Review and Observation - Last week (2025.12.29 - 2025.12.31), the market was volatile, with major indices showing mixed performance. The Shanghai Composite Index rose 0.13%, the CSI 300 fell 0.59%, and the ChiNext Index fell 1.25%. Market highlights were in commercial space, robotics, and AI application sectors, and most industries declined. The average daily trading volume was 2128.3 billion yuan, an increase of 163.2 billion yuan from the previous week [3][11]. - The US's raid on Venezuela may cause short - term increases in gold and crude oil prices and strengthen the US dollar. In the long term, it may form a long - term negative impact on international oil prices. Chinese asphalt and fuel oil products relying on Venezuelan heavy crude oil face risks of unstable raw material sources [13]. 3.1.2 Pan - Fixed - Income Market Review and Observation - Last week (2025.12.29 - 2026.01.04), the bond market was sluggish, with yields on 1 - year, 10 - year, and 30 - year government bonds rising. There are both positive and negative factors in the future, and the bond market is recommended to be treated with a neutral and volatile mindset [4][14]. - Last week (2025.12.29 - 2026.01.02), the US Treasury yield curve steepened, with different trends for various - term yields. The Fed's December minutes showed a likely 2 - time rate cut in 2026, but short - term employment data boosted the yield curve [14][15]. - Last week (2025.12.29 - 2025.12.31), the CSI REITs Total Return Index fell 0.49%. In the primary market, 20 REITs were successfully issued in 2025, and 3 new REITs made progress last week [15]. 3.1.3 Public Fund Market Dynamics - On December 31, 2025, the CSRC officially released the "Regulations on the Management of Sales Fees of Publicly Offered Securities Investment Funds", marking the completion of the three - stage fee reform in the public fund industry. The formal version has made adjustments to the redemption fees of index funds and bond funds, which is beneficial in the short and long term. It also regulates other fees in the fund sales process to build a transparent, fair, and sustainable industry ecosystem [4][16][19]. 3.2 Fund Index Performance Tracking 3.2.1 Equity Strategy Theme - Based Index - **Active Stock Fund Preferred Index**: Each period selects 15 funds with equal - weight allocation. The core positions select active equity funds based on performance competitiveness and style stability, and the style distribution is balanced according to the CSI Equity - Oriented Fund Index. The performance benchmark is the CSI Equity - Oriented Fund Index (930950.CSI) [22][23]. 3.2.2 Investment Style - Based Index - **Value Stock Fund Preferred Index**: The value style includes deep - value and quality - value styles. It selects 10 funds of deep - value, quality - value, and balanced - value styles based on multi - period style classification. The performance benchmark is the CSI 800 Value Index (H30356.CSI) [26][27]. - **Balanced Stock Fund Preferred Index**: Balanced - style fund managers balance stock valuation and growth. It selects 10 relatively balanced and value - growth style funds based on multi - period style classification. The performance benchmark is the CSI 800 (000906.SH) [28]. - **Growth Stock Fund Preferred Index**: The growth style aims to capture the performance and valuation double - click opportunities of high - growth companies. It selects 10 funds of active - growth, quality - growth, and balanced - growth styles based on multi - period style classification. The performance benchmark is the 800 Growth (H30355.CSI) [31]. 3.2.3 Industry Theme - Based Index - **Pharmaceutical Stock Fund Preferred Index**: Selects funds based on the intersection market value ratio of fund equity holdings and the representative index (CITIC Pharmaceutical) components. It constructs an evaluation system and selects 15 funds. The performance benchmark is the pharmaceutical theme fund index (fitted by Huabao Securities' fund research and investment platform) [35][36]. - **Consumption Stock Fund Preferred Index**: Selects funds based on the intersection market value ratio of fund equity holdings and representative indices (CITIC Automobile, Home Appliances, etc.). It constructs an evaluation system and selects 10 funds. The performance benchmark is the consumption theme fund index (fitted by Huabao Securities' fund research and investment platform) [36][37]. - **Technology Stock Fund Preferred Index**: Selects funds based on the intersection market value ratio of fund equity holdings and representative indices (CITIC Electronics, etc.). It constructs an evaluation system and selects 10 funds. The performance benchmark is the technology theme fund index (fitted by Huabao Securities' fund research and investment platform) [40]. - **High - end Manufacturing Stock Fund Preferred Index**: Selects funds based on the intersection market value ratio of fund equity holdings and representative indices (CITIC Construction, etc.). It constructs an evaluation system and selects 10 funds. The performance benchmark is the high - end manufacturing theme fund index (fitted by Huabao Securities' fund research and investment platform) [45][46]. - **Cyclical Stock Fund Preferred Index**: Selects funds based on the intersection market value ratio of fund equity holdings and representative indices (CITIC Petroleum and Petrochemical, etc.). It constructs an evaluation system and selects 5 funds. The performance benchmark is the cyclical theme fund index (fitted by Huabao Securities' fund research and investment platform) [48][49]. 3.2.4 Money - Market Enhancement Index - **Money - Market Enhancement Strategy Index**: Aims at liquidity management, pursues a curve that exceeds money - market funds and is smooth and upward. It mainly allocates money - market funds and passive index - type bond funds (inter - bank certificate of deposit index funds). The performance benchmark is the CSI Money - Market Fund Index (H11025.CSI) [52]. 3.2.5 Pure Bond Index - **Short - Term Bond Fund Preferred Index**: Aims at liquidity management, pursues a smooth and upward curve while controlling drawdowns. It selects 5 funds with stable long - term returns and strict drawdown control. The performance benchmark is 50% * Short - Term Pure Bond Fund Index + 50% * Ordinary Money - Market Fund Index [55]. - **Medium - and Long - Term Bond Fund Preferred Index**: Invests in medium - and long - term pure bond funds, pursues stable returns while controlling drawdowns, and selects 5 funds. It adjusts the duration and the ratio of credit bond funds and interest - rate bond funds according to market conditions [57]. 3.2.6 Fixed - Income Plus Index - **Low - Volatility Fixed - Income Plus Preferred Index**: The equity center is positioned at 10%, selects 10 funds each period, and focuses on fixed - income plus products with an equity center within 15% in the past three years and recently. The performance benchmark is 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index (CBA00303.CS) [59]. - **Medium - Volatility Fixed - Income Plus Preferred Index**: The equity center is positioned at 20%, selects 5 funds each period, and selects fixed - income plus products with an equity center between 15% - 25% in the past three years and recently. The performance benchmark is 20% CSI 800 Index + 80% ChinaBond New Composite Full - Price Index (CBA00303.CS) [63]. - **High - Volatility Fixed - Income Plus Preferred Index**: The equity center is positioned at 30%, selects 5 funds each period, and selects fixed - income plus products with an equity center between 25% - 35% in the past three years and recently. The performance benchmark is 30% CSI 800 Index + 70% ChinaBond New Composite Full - Price Index (CBA00303.CS) [66]. 3.2.7 Other Pan - Fixed - Income Index - **Convertible Bond Fund Preferred Index**: Selects bond - type funds with an average convertible bond investment ratio of more than 60% in the latest period and more than 80% in the past four quarters as the sample space. It constructs an evaluation system and selects 5 funds [68]. - **QDII Bond Fund Preferred Index**: The underlying assets are overseas bonds. It selects 6 funds with stable returns and good risk control based on credit and duration [72]. - **REITs Fund Preferred Index**: The underlying assets are infrastructure projects. It selects 10 funds with stable operation, reasonable valuation, and certain elasticity based on the type of underlying assets [74].

Report Summary 1. Investment Ratings - No investment ratings for the industry are provided in the report. 2. Core Viewpoints - The report presents several ETF strategy indices constructed with the help of ETFs, aiming to convert quantitative models or subjective views into practical investment strategies. It tracks the performance and positions of these indices on a weekly basis [12]. 3. Summary by Index 3.1 ETF Strategy Index Tracking - **Performance Last Week**: - **Huabao Research Large - Small Cap Rotation ETF Strategy Index**: Returned -0.59% last week, with a benchmark (CSI 800) return of -0.40% and an excess return of -0.18% [13]. - **Huabao Research Quantitative Windmill ETF Strategy Index**: Returned -0.49% last week, with a benchmark (CSI 800) return of -0.40% and an excess return of -0.09% [13]. - **Huabao Research Quantitative Balance Technique ETF Strategy Index**: Returned -0.28% last week, with a benchmark (CSI 300) return of -0.59% and an excess return of 0.31% [13]. - **Huabao Research SmartBeta Enhanced ETF Strategy Index**: Returned -1.08% last week, with a benchmark (CSI 800) return of -0.40% and an excess return of -0.68% [13]. - **Huabao Research Hot - Spot Tracking ETF Strategy Index**: Returned -0.68% last week, with a benchmark (CSI All - Share) return of -0.32% and an excess return of -0.35% [13]. - **Huabao Research Bond ETF Duration Strategy Index**: Returned -0.17% last week, with a benchmark (ChinaBond Aggregate Index) return of -0.20% and an excess return of 0.03% [13]. 3.2 Huabao Research Large - Small Cap Rotation ETF Strategy Index - **Strategy**: Uses multi - dimensional technical indicator factors and a machine - learning model to predict the return difference between the Shenwan Large - Cap Index and the Shenwan Small - Cap Index. It outputs weekly signals to determine positions and obtain excess returns [4]. - **Performance**: As of 2025/12/31, the excess return since 2024 was 19.34%, the excess return in the past month was -0.98%, and the excess return last week was -0.18%. The current position is 100% in the SSE 50 ETF (510300.SH) [4][14][18]. 3.3 Huabao Research SmartBeta Enhanced ETF Strategy Index - **Strategy**: Uses price - volume indicators to time self - built Barra factors and maps timing signals to ETFs based on their exposure to 9 major Barra factors to outperform the market. It selects mainstream broad - based index ETFs and some style and strategy ETFs [4]. - **Performance**: As of 2025/12/31, the excess return since 2024 was 21.34%, the excess return in the past month was -3.08%, and the excess return last week was -0.68%. The positions include Tianhong ChiNext 300ETF (159836.SZ) with 25.01%, ChiNext Large - Cap ETF (159814.SZ) with 25.01%, E Fund ChiNext ETF (159915.SZ) with 25.00%, and Wanjia ChiNext Composite ETF (159541.SZ) with 24.98% [4][18][22]. 3.4 Huabao Research Quantitative Windmill ETF Strategy Index - **Strategy**: Adopts a multi - factor approach, including grasping medium - and long - term fundamental dimensions, tracking short - term market trends, and analyzing the behavior of various market participants. It uses valuation and crowding signals to indicate industry risks and multi - dimensionally digs potential sectors for excess returns [5]. - **Performance**: As of 2025/12/31, the excess return since 2024 was 38.33%, the excess return in the past month was 2.15%, and the excess return last week was -0.09%. The positions include Chemical ETF (159870.SZ) with 20.94%, E Fund Securities and Insurance ETF (512070.SH) with 20.47%, Oil and Gas ETF (159697.SZ) with 19.77%, Steel ETF (515210.SH) with 19.48%, and New Energy ETF (516160.SH) with 19.34% [5][22][26]. 3.5 Huabao Research Quantitative Balance Technique ETF Strategy Index - **Strategy**: Employs a multi - factor system covering economic fundamentals, liquidity, technical aspects, and investor behavior to build a quantitative timing system for equity market trend judgment. It also builds a prediction model for market large - and small - cap styles to adjust equity market position distribution and obtain excess returns through timing and rotation [5]. - **Performance**: As of 2025/12/31, the excess return since 2024 was -10.66%, the excess return in the past month was -0.66%, and the excess return last week was 0.31%. The positions include 10 - Year Treasury Bond ETF (511260.SH) with 9.20%, Enhanced 500ETF (159610.SZ) with 6.15%, CSI 1000ETF (512100.SH) with 6.00%, 300 Enhanced ETF (561300.SH) with 32.86%, Short - Term Financing ETF (511360.SH) with 22.90%, and Government Bond ETF (511520.SH) with 22.88% [5][26][29]. 3.6 Huabao Research Hot - Spot Tracking ETF Strategy Index - **Strategy**: Tracks and mines hot - spot index target products in a timely manner based on strategies such as market sentiment analysis, industry major event tracking, investor sentiment and professional opinions, policy and regulatory changes, and historical deductions. It constructs an ETF portfolio to capture market hot spots and provides short - term market trend references for investors [6]. - **Performance**: As of 2025/12/31, the excess return in the past month was -2.40%, and the excess return last week was -0.35%. The positions include Non - Ferrous Metals 50ETF (159652.SZ) with 39.28%, Bosera Hong Kong Stock Dividend ETF (513690.SH) with 23.20%, E Fund Hong Kong Stock Connect Pharmaceutical ETF (513200.SH) with 18.96%, and Short - Term Financing ETF (511360.SH) with 18.56% [6][29][32]. 3.7 Huabao Research Bond ETF Duration Strategy Index - **Strategy**: Uses bond market liquidity and price - volume indicators to select effective timing factors and predicts bond yields through machine - learning methods. When the expected yield is below a certain threshold, it reduces the long - duration positions in the bond investment portfolio to improve long - term returns and control drawdowns [6]. - **Performance**: As of 2025/12/31, the excess return in the past month was 0.15%, and the excess return last week was 0.03%. The positions include 10 - Year Treasury Bond ETF (511260.SH) with 50.01%, 5 - to 10 - Year Treasury Bond ETF (511020.SH) with 25.00%, and Government Bond ETF (511520.SH) with 24.99% [6][32][35].

Group 1 - The report indicates that post-New Year, the bond market sentiment is expected to ease, but a neutral approach is recommended due to low likelihood of interest rate cuts in the short term, suggesting a maintenance of a neutral duration strategy [2][12] - In the stock market, increased volatility is anticipated due to institutional rebalancing at year-end, but the focus on high prosperity sectors remains unchanged, with a positive outlook for the spring market in January-February [3][12] - Investment opportunities are highlighted in sectors with upward trends, specifically AI, semiconductors, new energy, non-ferrous metals, chemicals, and the ChiNext board, with a recommendation to patiently await the upcoming spring market [3][12] Group 2 - The report reviews significant events, including the announcement of a 625 billion yuan special bond to support consumer upgrades and the exemption of VAT on housing sold after two years of ownership, which may stimulate economic activity [9] - The report notes that the official manufacturing PMI for December rose to 50.1, indicating a return to expansion, with both production and demand showing significant recovery [9] - The bond market is described as experiencing weak fluctuations, with long-term bonds underperforming due to concerns over fiscal stimulus and stronger-than-expected PMI data [10]

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The formal implementation of the "Asset Management Product Information Disclosure Management Measures" by the National Financial Supervision Administration marks a new phase in the establishment of a unified regulatory framework for information disclosure in the asset management sector, effective from September 1, 2026 [4][11]. - Su Yin Wealth Management has actively participated in multiple market-first holding-type real estate ABS projects, including the first national guarantee rental housing ABS and the first industrial park ABS, totaling over 10 transactions, which highlights its strategic alignment with national priorities and the transition from traditional fixed-income investments to equity asset allocation [4][15]. Regulatory and Industry Dynamics - The "Asset Management Product Information Disclosure Management Measures" aims to address the fragmented and inconsistent disclosure rules for three types of asset management products, establishing a unified framework covering the entire lifecycle of products [11][12]. - The measures emphasize standardized channels for public products, detailed frequency requirements for reports, and strict content regulations to enhance transparency and prevent misleading marketing practices [12][13]. Yield Performance - For the week of December 22-28, 2025, cash management products recorded a 7-day annualized yield of 1.30%, up 3 basis points from the previous week, while money market funds reported a yield of 1.21%, an increase of 2 basis points [5][16]. - The yield difference between cash management products and money market funds increased to 0.10%, reflecting a positive trend in the yield performance of various fixed-income products [16][18]. Net Value Tracking - The net value ratio of bank wealth management products decreased to 1.03%, down 1.53 percentage points week-on-week, indicating a potential easing of redemption pressure [6][25]. - The credit spread widened by 2.93 basis points, remaining near historical lows since September 2024, suggesting limited value for investors [25][28].

Group 1 - The report indicates that the A-share market is expected to continue its upward trend in 2026, although the growth rate is likely to slow down, with stronger certainty in the first half of the year [5] - The report suggests focusing on structural opportunities in high-growth and high-dividend sectors, as a broad market rally may be difficult to achieve [5] - The Hong Kong stock market is anticipated to experience strong fluctuations in the first half of 2026, with potential volatility increasing in the second half due to changes in IPO financing and interest rate expectations [5] Group 2 - The report highlights that the U.S. stock market is expected to maintain a positive trend, although there may be fluctuations around mid-2026 due to uncertainties related to the midterm elections [5] - The report notes that the U.S. economy is projected to remain robust, supported by the "big beautiful bill" which is expected to enhance corporate returns [5] - Despite potential market volatility due to election uncertainties, the overall outlook for the U.S. stock market remains optimistic, bolstered by a weak dollar and continued liquidity [5] Group 3 - The report states that the domestic bond market is likely to experience fluctuations in the first half of 2026, with a slight decrease in the interest rate center expected in the second half due to increased economic downward pressure [5] - The report anticipates that the gold price will continue its upward trend, although the overall increase may be slower compared to 2025 [5] - The report indicates that the RMB exchange rate is expected to remain stable and slightly stronger in the first half of 2026, with increased volatility anticipated in the second half as the Fed halts rate cuts [5]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The equity market rebounded last week, with the Shanghai Composite Index achieving an "eight - consecutive - yang" pattern. The rebound was due to the pulse of incremental funds in A500ETF and the pre - emptive action under high expectations for the "Spring Rally." Mid - term, global liquidity is expected to be loose, and there are opportunities for the undervalued pro - cyclical style to make up for losses. [2][3][12] - The bond market continued to recover last week. In the current environment, the space for a deep adjustment in the bond market is limited, and the 10 - year Treasury yield may maintain a narrow - range oscillation pattern in the future. [3][13] - The subscription funds for Huaxia Zhonghe Clean Energy REIT exceeded 160 billion, indicating strong investor recognition. [4][17] Summary According to the Directory 1. Weekly Market Observation 1.1. Equity Market Review and Observation - Last week, the CSI 300 index rose 1.95%, the Shanghai Composite Index rose 1.88%, and the CSI 500 index rose 4.03%. The average daily trading volume of the whole A - share market was 1,956.9 billion, showing an increase compared to the previous week. The rebound was due to A500ETF incremental funds and the pre - emptive action for the "Spring Rally." [2][10] - The mid - term US monetary policy is expected to be loose. Short - term market focus is on US inflation and employment data. If the data shows economic cooling, the stock market may continue to rise; otherwise, it may affect the domestic growth style. [11] - At the end of the year, the focus of the market has shifted to commercial aerospace. Overseas, SpaceX signaled an IPO, and Google made related investments; domestically, many commercial aerospace companies are queuing up for IPOs on the Science and Technology Innovation Board. [12] 1.2. Fixed - Income Market Review and Observation - Last week, the bond market continued to recover. The 1 - year Treasury yield decreased by 6.75BP to 1.29%, the 10 - year Treasury yield increased by 0.68BP to 1.84%, and the 30 - year Treasury yield decreased by 0.19BP to 2.22%. The 10 - year Treasury yield may maintain a narrow - range oscillation pattern. [3][13] - Last week, the US Treasury yield oscillated downward. The 1 - year, 2 - year, and 10 - year US Treasury yields all decreased by 2BP. The GDP data initially pushed up the yield, but it later declined due to the consumer confidence index. [14] - Last week, the CSI REITs Total Return Index rose 1.56%. In the primary market, 4 new public REITs made progress, and Huaxia Zhonghe Clean Energy REIT was established. [15][16] 1.3. Public Fund Market Dynamics - The subscription funds for Huaxia Zhonghe Clean Energy REIT exceeded 160 billion, with the public investor effective subscription multiple about 392 times and the offline investor effective subscription multiple exceeding 340 times. [4][17] 2. Fund Index Performance Tracking 2.1. Equity Strategy Theme - Based Index - **Active Stock Fund Selection**: The index selects 15 funds each period, with equal - weight allocation. It selects active equity funds based on performance competitiveness and style stability, and balances the style according to the CSI Equity - Oriented Fund Index. The performance benchmark is the CSI Equity - Oriented Fund Index. [20][21] 2.2. Investment Style - Based Index - **Value Stock Fund Selection**: It selects 10 funds with deep - value, quality - value, and balanced - value styles. The performance benchmark is the CSI 800 Value Index. [23] - **Balanced Stock Fund Selection**: It selects 10 funds with relatively balanced and value - growth styles. The performance benchmark is the CSI 800. [25][26] - **Growth Stock Fund Selection**: It selects 10 funds with active - growth, quality - growth, and balanced - growth styles. The performance benchmark is the 800 Growth Index. [28] 2.3. Industry Theme - Based Index - **Pharmaceutical Stock Fund Selection**: It selects 15 funds based on the intersection market value of fund equity holdings and the representative index, and constructs an evaluation system. The performance benchmark is the pharmaceutical theme fund index. [32][33] - **Consumption Stock Fund Selection**: It selects 10 funds based on the intersection market value of fund equity holdings and relevant representative indices. The performance benchmark is the consumption theme fund index. [33][34] - **Technology Stock Fund Selection**: It selects 10 funds based on the intersection market value of fund equity holdings and relevant representative indices. The performance benchmark is the technology theme fund index. [37] - **High - end Manufacturing Stock Fund Selection**: It selects 10 funds based on the intersection market value of fund equity holdings and relevant representative indices. The performance benchmark is the high - end manufacturing theme fund index. [42][43] - **Cyclical Stock Fund Selection**: It selects 5 funds based on the intersection market value of fund equity holdings and relevant representative indices. The performance benchmark is the cyclical theme fund index. [45][46] 2.4. Money - Market Enhanced Index - **Money - Market Enhancement Strategy**: The index aims for liquidity management and a smooth - upward curve. It mainly invests in money - market funds and inter - bank certificate of deposit index funds. The performance benchmark is the CSI Money - Market Fund Index. [49] 2.5. Pure - Bond Index - **Short - Term Bond Fund Selection**: It selects 5 funds with stable long - term returns, strict drawdown control, and significant absolute - return capabilities. The performance benchmark is 50% * Short - Term Pure - Bond Fund Index + 50% * General Money - Market Fund Index. [52] - **Medium - and Long - Term Bond Fund Selection**: It selects 5 medium - and long - term pure - bond funds, balancing coupon strategies and band - trading operations. It adjusts the duration and the ratio of credit - bond funds and interest - rate - bond funds according to the market. [54] 2.6. Fixed - Income + Index - **Low - Volatility Fixed - Income + Selection**: It selects 10 funds with an equity central position of 10%. The performance benchmark is 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index. [56] - **Medium - Volatility Fixed - Income + Selection**: It selects 5 funds with an equity central position of 20%. The performance benchmark is 20% CSI 800 Index + 80% ChinaBond New Composite Full - Price Index. [60] - **High - Volatility Fixed - Income + Selection**: It selects 5 funds with an equity central position of 30%. The performance benchmark is 30% CSI 800 Index + 70% ChinaBond New Composite Full - Price Index. [63] 2.7. Other Fixed - Income - Related Indices - **Convertible Bond Fund Selection**: It selects 5 funds based on the proportion of convertible - bond investment and constructs an evaluation system. [66] - **QDII Bond Fund Selection**: It selects 6 funds with stable returns and good risk control based on credit and duration. [69] - **REITs Fund Selection**: It selects 10 funds with stable operation, reasonable valuation, and certain elasticity based on the underlying asset type. [70]

Group 1: Report Overview - The report is a public fund special report on the investment value analysis of fund manager Chen Huaiyi of Huabao Fund, focusing on his investment capabilities through the analysis of Huabao Emerging Growth [1] Group 2: Fund Manager Information 2.1 Fund Manager Introduction - Chen Huaiyi previously worked in Southwest Securities and Essence Securities. He joined Huabao Fund in September 2018, and has served as a senior analyst and fund manager assistant. Since December 2021, he has been the fund manager of Huabao Emerging Growth, and since October 2022, he has been the fund manager of Huabao Emerging Industries [10] 2.2 Management Product Introduction 2.2.1 Representative Product - Since December 14, 2021, Chen Huaiyi has managed Huabao Emerging Growth (010114.OF), with a total scale of 254 million yuan as of September 30, 2025. Considering the similar styles of the two products he currently manages, Huabao Emerging Growth, which he has managed for a longer time, is selected as the representative product [11] 2.2.2 Representative Product Net Value Performance - As of November 25, 2025, after excluding the 3 - month construction period, Huabao Emerging Growth significantly outperformed the performance benchmark, recording a cumulative positive excess return of 49.28%. Its return performance among high - equity - position hybrid funds is remarkable, surpassing 96% of similar funds. Although its drawdown control is slightly weak, it is still at a mid - level among similar funds, and its volatility control is relatively good [12][14][16] Group 3: Fund Manager Investment Ability Analysis 3.1 Investment Framework - Guided by the Industrial Cycle and Highlighting Industrial Thinking - The investment framework centers around "good industries, good companies, and good prices", with the core principle of "beta first", focusing on the industrial cycle of the technology manufacturing industry. Through industrial cycle positioning, position structure division, and market value space assessment, it captures industries with strong growth potential in the next 2 - 3 years. The positions are divided into three parts: the main position (beta - following position) in strong - beta industries, the value position (alpha position) for companies with outstanding alpha in a declining industry, and the flexible position (about 10%) for supplementary trading opportunities. Investment decisions are based on the dynamic calculation of the long - term market value space of individual stocks, and strict selling discipline is enforced when the logic is falsified or the market value approaches the target [3][21][23] 3.2 Shareholding Characteristics - Emphasizing the Match between Valuation and Fundamentals - Industry allocation shows the characteristics of "focusing on the main line and diversifying internally", and the portfolio is a reflection of industrial thinking. In stock selection, he prefers segment leaders, pays attention to "good prices", is cautious about high - valuation popular stocks, and digs out stocks with better odds through in - depth research in the early stage of the industry or when there are cognitive differences [3][21][29] 3.3 Operational Characteristics - Keeping Pace with the Times and Dynamically Optimizing - He maintains a high - position operation, and the excess return mainly comes from structural adjustments and individual stock selection based on industry comparisons rather than macro - timing. He focuses on industrial trends, continuously adjusts the portfolio through "dynamic optimization": the core holdings remain stable, while marginal changes are keenly captured through high - frequency research and expert interviews, and the flexible position is used for flexible adjustments. The concentration of holdings changes dynamically with the confidence of research, and once a high - certainty direction is locked, he dares to make heavy allocations and then continuously rebalances according to the valuation difference and technological evolution [4][22][40] Group 4: Summary - Chen Huaiyi is a "stone - turning" expert who is good at pursuing excess returns through refined industrial navigation and dynamic portfolio management in the wave of manufacturing growth stocks. His investment capabilities are characterized by being guided by the industrial cycle, emphasizing the match between valuation and fundamentals, and keeping pace with the times and dynamically optimizing [52][53] Group 5: Appendix - The appendix provides the product elements of Huabao Emerging Growth, including the fund name, abbreviation, full name, establishment date, comparison benchmark, investment objective, investment scope, management fee rate, custody fee rate, and the tenure of the current fund manager [55]