Market Overview - On January 26, the Shanghai Composite Index rose by 0.12%, while the ChiNext Index fell by 0.86%. Gold stocks, oil and gas, and basic metals led the gains, with insurance and brokerage sectors also performing well. Financial technology and AI application concepts experienced a pullback [1] Regulatory Changes - On January 23, the China Securities Regulatory Commission (CSRC) and the Asset Management Association of China released new guidelines for the performance comparison benchmarks of publicly offered securities investment funds, effective from March 1. The new regulations aim to address industry issues such as ambiguous benchmarks and style drift, establishing a comprehensive control system that links performance benchmarks to fund manager compensation [1] Fund Performance and Fees - The Financial Technology ETF Huaxia (516100) announced a fee reduction starting January 22, aligning its management fee rate with the Securities ETF Huaxia at 0.15%, and a custody fee rate of 0.05%, making it the lowest among comparable funds [1] - The Securities ETF Huaxia tracks the CSI All Share Securities Companies Index, which has a current price-to-earnings ratio (PE-TTM) of 17.15, placing it in the 6.05% percentile over the past year, indicating a historical low valuation [2] Top Holdings - As of December 31, 2025, the top ten weighted stocks in the CSI All Share Securities Companies Index include: - Dongfang Caifu (14.12%) - CITIC Securities (13.50%) - Guotai Junan (11.19%) - Huatai Securities (6.64%) - GF Securities (3.13%) - China Merchants Securities (2.98%) - Dongfang Securities (2.75%) - Industrial Securities (2.47%) - Shenwan Hongyuan (2.29%) - CICC (1.97%) - The top ten stocks account for a total of 61.15% of the index [2][3]

Group 1 - The capital market has been active recently, with brokers conducting research on 440 A-share companies this year, predominantly in the electronics and machinery sectors, while the power equipment and chemical sectors have seen a surge in interest [1] - According to Founder Securities, brokers are still in a "lagging" phase, but ROE is on an upward trend, indicating that sector performance, although delayed, is expected to improve [1] - The capital market is projected to remain robust in 2025, with an average daily stock trading volume of 20.8 trillion yuan, a year-on-year increase of 70.2%, and an average margin balance of 2.08 trillion yuan, up 32.7% year-on-year [1] Group 2 - The 国证证券龙头指数 (399437) has shown a strong increase of 1.98%, with notable gains in constituent stocks such as 财通证券 (6.50%), 兴业证券 (4.95%), and 华泰证券 (3.52%) [1] - The 证券ETF鹏华 (159993) closely tracks the 国证证券龙头指数 and aims to reflect the market performance of quality listed companies in the securities theme [2] - As of December 31, 2025, the top ten weighted stocks in the 国证证券龙头指数 account for 79.13% of the index, including companies like 东方财富, 中信证券, and 华泰证券 [2]

Core Viewpoint - The coconut water industry is currently in a growth phase, with increasing competition. IF, as an industry leader, has a first-mover advantage and is actively expanding its domestic brand and channel presence. The company is expected to benefit from industry standardization and maintain its market share [1]. Group 1: Financial Performance - In H2 2025, the company's overall performance is under pressure due to exchange rate fluctuations and increased costs. The main brand IF's revenue growth has slowed compared to the first half of the year, while the innococo brand faced a significant decline due to supply chain disruptions [2]. - The gross margin is expected to decline in H2 2025 due to the appreciation of the Thai baht against the US dollar, and increased marketing expenses from new endorsements and promotional activities are impacting profits [2]. - For 2026, the company anticipates a return to high revenue growth, driven by the strong brand recognition of IF and the recovery of the innococo supply chain. Collaborations with major distributors are expected to enhance product penetration [2]. Group 2: Market Strategy - The company is focusing on strengthening brand education and increasing consumer awareness of its products' natural attributes through targeted marketing on platforms like Xiaohongshu. It is also advocating for industry standards to eliminate low-quality brands, which could increase market concentration [3]. - The company has established a China office in Shanghai and formed a dedicated team for market maintenance and channel expansion, with plans to continue developing domestic channels. It is currently collaborating with seven contract manufacturers, including General Beverage, and is considering domestic production to optimize its supply chain [3].

Core Viewpoint - The PCB sector is experiencing significant growth driven by AI demand, with several key investment themes identified for 2025 [1] Group 1: PCB Upgrade Trends - The commercialization of CoWoP technology is accelerating, leading to a new round of upgrades in AI PCB products, with mSAP capacity and technology becoming critical competitive thresholds for PCB manufacturers [1] - The industry is continuously optimizing the Rubin Ultra system architecture, with potential advancements in backplane solutions expected [1] Group 2: CCL Upgrade Trends - The upgrade from M8 to M9 in CCL is a confirmed trend, with increasing adoption in GPUs, ASIC servers, and 1.6T switches, leading to a rapid increase in the use of Q fabric, HVLP 3-4, and hydrocarbon resins [2] - Concerns regarding potential downgrades in PCB specifications for NV's Rubin CPX architecture have been addressed, with backup plans in place for successful mass delivery [2] Group 3: Upstream Material Price Trends - The CCL industry is currently in an upward price cycle, with significant price increases announced by major manufacturers, including a 30% increase by Japan's Resonac [3] - The average price of CCL in 2025 has risen by 20%-30%, and further price increases are anticipated in 2026, which could enhance the profitability of the entire sector [3] Group 4: Demand for Substrates - There is a growing demand for substrates, with BT substrates experiencing continuous price increases and ABF substrate demand beginning to overflow to domestic manufacturers [4] - The global AI data center's storage demand is robust, with TSMC's capital expenditure for 2026 significantly exceeding market expectations, indicating a strong growth outlook for AI chips [4] - NVIDIA's CEO has engaged with leading manufacturers to secure supply for Low-CTE glass fabric, which is a critical component in the substrate supply chain [4]

Core Insights - The report highlights that the short-term changes in broad-based ETF shares are impacting weighted stocks, while long-term regulatory changes are constraining deviations in benchmarks [1][5]. Group 1: Market Performance - As of January 24, 2026, the Shanghai Composite Index rose by 0.84%, while the Shenzhen Component Index increased by 1.11%. The CSI 300 Index fell by 0.62%, and the ChiNext Index decreased by 0.34% [10]. - The average daily trading volume in the Shanghai and Shenzhen markets was 2.80 trillion yuan, reflecting a 19% decrease compared to the previous period [5]. Group 2: Industry Dynamics and Weekly Commentary Insurance Sector - The performance of listed insurance companies is expected to continue high growth, with marginal improvements in long-term interest spreads. The 10-year government bond yield was 1.83%, down 1 basis point from the previous week, indicating a stable economic outlook [11][14]. - The insurance sector is benefiting from regulatory changes that enhance asset-liability management capabilities, which are expected to support high growth in 2026. Key stocks to watch include China Ping An, China Life, and New China Life [14][15]. Securities Sector - The report notes a significant decline in broad-based ETF shares, with the CSI 1000 dropping by 42%, the SSE 50 by 25%, and the CSI 300 by 23%. This decline is expected to have a direct impact on the trading volumes of associated leading stocks [15][19]. - The China Securities Regulatory Commission has introduced new guidelines for public fund performance benchmarks, effective March 1, 2026, aimed at enhancing stability and protecting investor interests [24][28]. Group 3: Key Company Valuations and Financial Analysis - China Ping An (601318.SH) has a current price of 68.40 CNY, with a target value of 85.17 CNY, indicating a buy rating. The expected EPS for 2025 is 8.91 CNY, with a PE ratio of 7.68x [6]. - New China Life (601336.SH) is rated as a buy with a target value of 94.21 CNY, and an expected EPS of 14.04 CNY for 2025, reflecting a PE ratio of 4.96x [6]. - China Pacific Insurance (601601.SH) is also rated as a buy, with a target value of 52.44 CNY and an expected EPS of 6.09 CNY for 2025, resulting in a PE ratio of 6.88x [6].

- The short-term timing model maintains an optimistic signal this week, supported by macro fundamentals, valuation caution, neutral sentiment, and optimistic liquidity[18][19][22] - The short-term timing strategy has achieved an annualized return of 16.78% since 2012, with an annualized excess return of 11.67%, and a maximum drawdown of 15.05%, significantly outperforming the benchmark strategy[20][21][24] - The growth-value rotation model suggests overweighting growth stocks this week, driven by favorable macro fundamentals, valuation metrics, and sentiment indicators. The model has delivered an annualized return of 13.34% since 2012, with an annualized excess return of 4.99%[30][31][33] - The small-cap and large-cap rotation model has shifted from favoring small caps to large caps this week. The model utilizes 11 effective rotation indicators, including financing buy balance changes and R007 rate trends. Since 2014, the strategy has consistently generated positive annual excess returns, with a 2026 year-to-date excess return of 1.43%[34][35][36] - The comprehensive signal smoothing for small-cap rotation achieved an annualized return of 20.85%, with an annualized excess return of 13.11%, and a maximum drawdown of 40.70%[36]

Core Viewpoint - The recent launch of dedicated insurance sections in the apps of major securities firms marks a significant shift in wealth management strategies, indicating a new phase in the competition among brokerages [2][3][10]. Group 1: Launch of Insurance Sections - Major securities firms such as CITIC Securities, Ping An Securities, and China Merchants Securities have introduced "insurance sections" in their official apps, reflecting a growing focus on insurance products [3][5]. - CITIC Securities' app now features 20 insurance products, including health insurance, life insurance, and annuities, while Ping An Securities offers a wide range of products including health, accident, and pet insurance [3][5]. - The insurance sections are designed to enhance the user experience and provide a comprehensive suite of financial products [2][3]. Group 2: Sales Performance and KPIs - Several brokerage branches in Shenzhen have been assigned specific sales KPIs for insurance products, indicating a push for performance in this new area [9][10]. - Sales targets for individual employees range from 100,000 to 500,000 yuan, but many employees report difficulties in meeting these targets [9][10]. Group 3: Market Context and Expert Insights - The push for insurance product sales by brokerages is seen as a response to the cyclical nature of their traditional revenue streams, with insurance providing a more stable income source [10][12]. - Experts suggest that the integration of insurance products can enhance customer loyalty and lifetime value, positioning brokerages as comprehensive wealth managers rather than just investment advisors [12][14]. - The recent regulatory environment has facilitated this shift, allowing brokerages to expand their offerings and better meet diverse investor needs [11][12]. Group 4: Competitive Landscape - Traditionally, banks have dominated the insurance agency space, but brokerages are leveraging their unique client base, which is more familiar with capital markets, to sell investment-linked insurance products [13][14]. - While brokerages face challenges such as a lack of insurance expertise and service infrastructure, their entry into the insurance market is expected to stimulate innovation and competition within the industry [13][14].

Core Viewpoint - The article discusses the significant transformation in the securities brokerage industry, highlighting the reduction of traditional brokers and the rise of investment advisors as firms shift from sales-driven models to wealth management-focused strategies [2][5]. Group 1: Decline of Securities Brokers - The number of securities brokers has decreased by over 5,000 in the past year, reflecting a broader trend of industry contraction [2]. - From early 2018 to the end of 2025, the number of brokers in the industry dropped from over 90,000 to 22,400, a reduction of more than 68,000 brokers over eight years [3]. - Major firms like CICC and China Merchants Securities have seen drastic reductions in their broker counts, with CICC achieving a "zero" broker count and China Merchants reducing from over 800 to just 13, a decline of over 90% [4]. Group 2: Factors Driving Change - The shift from "transactional trading" to wealth management has led to a reevaluation of talent needs, with a focus on professional skills over sheer numbers [3][4]. - Increased market competition and the decline in commission rates have pressured traditional revenue streams, exacerbated by reforms in public fund fees [4]. - The advancement of financial technology has reduced the demand for traditional broker roles, as online services and automated tools take precedence [4]. Group 3: Rise of Investment Advisors - The number of investment advisors has surged, increasing from over 40,000 in 2018 to 86,000 by the end of 2025, with a notable addition of over 5,000 advisors in the past year [6]. - Leading firms are investing in expanding their advisory teams, with companies like Huatai Securities and CITIC Securities increasing their advisor counts significantly [6]. - Smaller firms are also adopting strategies to enhance their advisory capabilities, focusing on reducing interchangeable roles while boosting the quality and scale of their advisory teams [6]. Group 4: Transition from Brokers to Advisors - Many investment advisors are former brokers transitioning into advisory roles, with firms assessing potential candidates based on their qualifications and client service abilities [7]. - The core competitive advantage in advisory services lies in building a highly skilled team capable of providing tailored solutions and asset management [7]. - The industry faces challenges in bridging the gap between traditional sales roles and the more complex demands of asset management and client relationship building [7]. Group 5: Evolving Skill Requirements - The current market demands investment advisors to possess skills in asset allocation, client relationship management, and the use of digital tools [8]. - Firms are developing training programs to enhance advisor capabilities, focusing on both technical skills and client engagement strategies [8]. - Companies are implementing structured support systems to ensure consistent delivery of strategies and insights across their advisory teams [8].

Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoint On January 23, 2026, the reform plan for the performance comparison benchmark of publicly - offered securities investment funds was officially implemented. This report focuses on the main adjustments of the official version compared with the draft for soliciting opinions [1]. 3. Summary by Relevant Catalogs 3.1 Performance Comparison Benchmark Specification - **Benchmark Element Library Selection**: The official version weakens the requirement for the fund manager to explain when selecting a stock index from the second - category library or outside the benchmark element library. It encourages fund managers to select and use performance comparison benchmark elements from the first - category library when developing actively managed funds [2][3]. - **Benchmark Element Preference Rules**: Different from the draft, the official version deepens the perspective to the underlying assets of the fund, providing targeted requirements for different underlying asset classes of the same fund, which is more in line with the current development status of domestic public funds [3]. - **Disclosure Requirements in Periodic Reports**: The official version has three main changes: relaxing the requirements for special fund types, weakening the disclosure requirements for the credit rating distribution comparison of bond - type funds, and adding the requirement to disclose the comparison of the asset allocation of FOFs and their benchmarks [6]. 3.2 External Supervision, Sales and Evaluation - **Fund Custodian's Monitoring of Benchmark Deviations**: The official version requires fund custodians to focus on the single - industry deviation of actively managed funds with industry - themed indices as benchmarks [8][9]. - **Sales Display Requirements**: The official version includes the performance display of fund evaluation institutions and limits the covered fund types to stock funds, hybrid funds, and FOFs [10][11]. - **Business Requirements for Fund Evaluation Institutions**: The official version provides more detailed suggestions and key indicators for classifying funds based on benchmarks and states that fund managers and sales institutions can adopt the classification results of fund evaluation institutions [11]. 3.3 Regulatory Assessment and Transition Period - **Supervision and Management**: The official version includes fund sales institutions in the classified evaluation and supervision system [12]. - **Transition Period**: The transition period for the fund custodian to establish a supervision mechanism for the investment style stability of equity funds remains six months. The transition period for the performance comparison benchmark display rectification of fund managers, sales institutions, and evaluation institutions is extended from six months to one year. Additionally, one - year transition periods are set for three aspects including information transmission of benchmark changes and disclosure of performance comparison benchmarks in periodic reports [12].

Core Viewpoint - Guanglian Aviation Industry Co., Ltd. is actively advancing its commercial aerospace business and the acquisition of Tianjin Yuefeng, with a focus on resource balance across multiple sectors and a robust risk management system [1][4]. Group 1: Acquisition Progress - The acquisition of Tianjin Yuefeng is in a critical phase, with core tasks such as auditing, evaluation, and due diligence progressing as planned. Both parties have reached a high level of consensus on key cooperation terms [2]. - Tianjin Yuefeng holds a significant market position in the commercial aerospace rocket tank sector, with an annual production capacity of 50-70 rocket tanks and a strong order backlog, ensuring high capacity utilization [2]. Group 2: Customer Expansion and Regional Layout - Guanglian Aviation is expanding its customer matrix in commercial aerospace through a "core synergy + diversified expansion" strategy, collaborating with leading companies like Blue Arrow Aerospace and Tianbing Technology [3]. - The company plans to establish an industrial layout in Shanghai to enhance production advantages in rocket tanks and structural components, further supporting regional commercial aerospace development [3]. Group 3: Resource Balance and Risk Management - The company employs a resource balance strategy across multiple sectors, leveraging technology reuse and flexible capacity allocation to maximize technological value [4]. - A comprehensive risk management system has been established, focusing on precise capacity planning based on order structure and market demand, lifecycle management of R&D projects, and proactive market trend analysis [4]. - Guanglian Aviation aims to activate Tianjin Yuefeng's existing capacity and market potential post-acquisition, contributing to profitability in the commercial aerospace sector and overall performance growth [4].