Core Insights - The first trading day of 2026 saw the launch of 28 new funds, marking the beginning of the year's fund sales [1] - The trend of active fund issuance continues from 2025, with a total of 46 new public funds expected to be launched in the week, predominantly equity funds [2][3] Fund Issuance Overview - In 2025, a total of 1,549 new funds were established, raising over 1.2 trillion yuan, making it the second-highest year in history for new fund issuance [3] - Equity funds, including stock and mixed funds, accounted for over 1,100 new funds and raised more than 620 billion yuan, representing over half of the total issuance [3] - Bond funds also performed well, with 263 new funds launched, raising nearly 444 billion yuan [3] - FOF products gained traction, with 89 new funds established, totaling over 84.5 billion yuan [3] Competitive Landscape - Leading fund management firms were particularly active in the issuance market in 2025, with E Fund launching 68 new funds, the highest in the industry [3] - Following closely, Fortune Fund launched 64 new funds, while Huaxia Fund and Huitianfu Fund each launched over 50 new products [3] - In terms of total established funds and asset scale, Huaxia Fund led with 73 new funds and approximately 100.7 billion yuan in net asset value, while E Fund ranked second with 84.5 billion yuan [3]

Group 1 - The Nasdaq Golden Dragon China Index saw a significant increase of over 4% in early trading, indicating a strong performance of Chinese stocks in the US market [1] - Notable individual stock performances included Baidu and GDS, both rising over 10%, while other companies like DDL and VNET also experienced substantial gains of over 8% [1] - The overall trend reflects a positive sentiment towards Chinese companies, with multiple stocks showing increases of 6% or more, suggesting a potential recovery or bullish outlook in the sector [1] Group 2 - Other companies such as Tencent Music, iQIYI, and Oriental also saw their stock prices rise by over 4%, contributing to the overall positive performance of Chinese stocks [2]

Group 1: Market Overview and Related Assets - US stock indices closed lower, with the Dow down 0.51%, Nasdaq down 0.5%, and S&P down 0.35%. Notably, Tesla fell over 3% and Nvidia dropped over 1% [1][5] - The Nasdaq Golden Dragon China Index also declined by 0.67%, with significant drops in individual stocks such as 1药网 down 7.14% and 叮咚买菜 down 7.19% [1][5] - Precious metals experienced significant volatility, with spot gold falling 3.18% after dropping below $4390 per ounce, and spot silver down 9.24% after falling below $72 per ounce [1][5] Group 2: Macroeconomic and Market Analysis - The US November pending home sales index increased by 3.3% month-on-month, exceeding expectations of 1%, while year-on-year it decreased by 0.3%, which was below the expected 0.1% [3][7] - The EIA announced a delay in the weekly oil status report, with notifications to be provided at least one hour in advance. Additionally, natural gas inventories decreased by 1660 billion cubic feet, slightly above the expected decrease of 1680 billion cubic feet [3][8] Group 3: International Focus and Geopolitical Issues - The conflict between Russia and Ukraine escalated, with Russia claiming to have destroyed 91 drones aimed at President Putin's residence, while Ukraine's President Zelensky dismissed these claims as false [4][9] - US Congresswoman Marjorie Taylor Greene criticized both parties for contributing to nearly $40 trillion in national debt and ongoing overseas conflicts, suggesting this has led to disillusionment among younger Americans towards the two major parties [4][9]

Market Review - The A-share market saw all major broad-based indices rise, with the CSI 500, ChiNext Index, and SME Index leading gains at 4.03%, 3.90%, and 3.88% respectively, while the Shanghai Composite, CSI 300, and Sci-Tech 50 lagged behind with returns of 1.88%, 1.95%, and 2.85% [5][12] - The trading volume of major broad-based indices increased, with all indices positioned within the 60%-85% historical percentile over the past 52 weeks [13] - The People's Bank of China conducted a net withdrawal of 34.8 billion yuan through reverse repos, with a total of 457.5 billion yuan maturing and a net open market injection of 422.7 billion yuan [20] Fund Issuance - A total of 65 new funds were established last week, with a combined issuance scale of 27.594 billion yuan, showing an increase from the previous week [3] - 77 funds were reported for issuance, including 1 REIT, 2 QDIIs, and 8 FOFs, indicating a rise in the number of funds being submitted for approval [4][5] Fund Performance - The median returns for active equity, flexible allocation, and balanced mixed funds were 2.57%, 2.14%, and 1.88% respectively last week [31] - Year-to-date, alternative funds have shown the best performance with a median return of 57.87%, while active equity, flexible allocation, and balanced mixed funds had median returns of 30.89%, 23.88%, and 16.45% respectively [31][37] ETF Market - As of December 26, 2025, the total scale of China's ETF market reached 6.03 trillion yuan, a significant increase of 61% from 3.73 trillion yuan at the end of 2024, marking a net increase of 2.29 trillion yuan [10] Fund Sales Subsidiaries - The number of public fund sales subsidiaries has expanded to 9, with recent approvals for subsidiaries from E Fund and Huitianfu [8][9] Industry Performance - In terms of industry performance, non-ferrous metals, national defense, and basic chemicals led with returns of 6.45%, 6.39%, and 5.41% respectively, while retail, banking, and coal lagged with returns of -1.31%, -0.89%, and -0.89% [18][19] - Year-to-date, non-ferrous metals, telecommunications, and electronics have shown the highest cumulative returns of 96.17%, 90.48%, and 45.21% respectively [18]

Core Insights - The DDC Diamond Championship Autumn Tournament, hosted by Huya Live, concluded successfully with Team Q9 winning the championship after a dramatic comeback in the final match [1] - The event featured 36 top teams, marking a 50% increase in participation compared to the previous summer tournament, and showcased a professionalized competition structure [3] Group 1: Event Structure and Participation - The tournament adopted a three-stage structure: ranking matches, promotion matches, and offline semifinals/finals, enhancing competitive quality and tactical execution [3] - The number of participating teams increased from 24 to 36, including defending champions and new rising teams, fostering a competitive environment [3] Group 2: Audience Engagement and Impact - Social media topics related to the tournament garnered over 76 million views, indicating significant public interest and engagement [4] - The tournament's substantial prize pool contributed to its status as one of the most influential tactical competition IPs of the autumn season [4] Group 3: Ecosystem Development - Huya is deepening its collaboration within the gaming ecosystem, launching a new 3D panoramic map tool tailored for the game, enhancing player experience and preparation [6] - The establishment of a diverse streamer matrix caters to various player content needs, enhancing engagement through competitive viewing, tactical learning, and entertainment [6][8] Group 4: Industry Significance - The successful operation of the tournament signifies Huya's capability in creating customized IPs and establishing a mature gaming ecosystem [8] - The integration of the 3D map tool and the streamer matrix exemplifies a collaborative model for building a healthy gaming ecosystem alongside game developers [8]

Market Performance - The three major U.S. stock indices closed lower on December 17, with the Dow Jones down 228.29 points (0.47%) at 47,885.97, the Nasdaq down 418.14 points (1.81%) at 22,693.32, and the S&P 500 down 78.83 points (1.16%) at 6,721.43 [1] Sector Performance - Technology stocks led the decline, with ASML, Oracle, and AMD dropping over 5%, while Tesla and Broadcom fell over 4%. Other notable declines included Nvidia, TSMC, Intel, and Google-A, which were down over 3%, and Qualcomm down over 2%. Meta, Apple, Amazon, Boeing, and Microsoft experienced slight declines, while Netflix saw a small increase [1] AI-Related Stocks - AI-related stocks generally fell, with Nvidia down 3.8%, Broadcom down 4.5%, AMD down 5.3%, Oracle down 5.4%, and Tesla down 4.6% [1] Chinese Stocks - Most popular Chinese stocks declined, with the Nasdaq Golden Dragon China Index down 0.73%. Notable declines included Huya, Pinduoduo, NIO, and Li Auto, which fell over 3%, while iQIYI, Tiger Brokers, and Xpeng dropped over 2%. Futu Holdings, Alibaba, NetEase, and Kingsoft fell over 1%, while Baidu and New Oriental saw slight increases, and Ctrip rose over 1% [1] Monetary Policy Insights - Federal Reserve Governor Christopher Waller expressed support for further interest rate cuts to return rates to neutral levels, indicating that current monetary policy rates are up to 100 basis points above neutral levels. He noted that this neutral rate would neither suppress growth nor elevate inflation [2]

Core Points - Huya Inc. has been appointed as the official organizer and exclusive streaming platform for the 2025 Demacia Cup, a prominent League of Legends tournament in China [1][2] - This is the first time since the tournament's inception in 2014 that hosting rights have been granted to a third party, indicating Huya's growing influence in the League of Legends e-sports ecosystem [2][3] - The tournament will feature 14 League of Legends Pro League (LPL) teams and two streamer squads, running from December 15, 2025, to January 3, 2026 [2] Company Overview - Huya Inc. is a leading provider of game-related entertainment and services, offering live streaming, video content, and a variety of services across gaming and e-sports [4] - The company has developed a robust entertainment ecosystem utilizing AI and advanced technologies, catering to a diverse community of game enthusiasts and industry partners [4] - Huya has expanded its services to include game distribution, in-game item sales, and advertising, while continuing to grow its presence both in China and internationally [4]

Group 1 - The Nasdaq Golden Dragon China Index increased by 0.64% [1] - Popular Chinese concept stocks mostly rose, with Huya up over 6% [1] - Daqo New Energy, Hesai Technology, and Yum China each rose over 2% [1] Group 2 - Alibaba, Baidu, and iQIYI saw increases of over 1% [1] - Li Auto and Tiger Brokers experienced declines of over 1% [1]

Core Insights - Huya Inc. is set to launch the mobile version of the social deduction game Goose Goose Duck on January 7, 2026, marking a significant step in its game publishing strategy [1] - The game has garnered over 10 million preregistrations as of November 2025, aided by Huya's strong streamer influence and content-driven marketing [2] - The launch highlights Huya's momentum in game publishing and its ability to leverage a robust content ecosystem and industry partnerships [3] Company Overview - Huya Inc. is a leading provider of game-related entertainment and services, offering live streaming, video content, and a variety of services across gaming and e-sports [4] - The company has developed a strong entertainment ecosystem powered by AI and advanced technologies, catering to gamers, content creators, and industry partners [4] Partner Overview - Kingsoft Shiyou, co-publisher of Goose Goose Duck, focuses on premium game development and the operation of high-quality IPs, with a commitment to building an IP-driven entertainment ecosystem [5]

Investment Rating - The report maintains a "Recommendation" rating for the media industry, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [2][40]. Core Views - The media sector is anticipated to experience a rebound, particularly in gaming and AI applications, with significant growth potential in these areas. The report emphasizes the importance of both sharpness and allocation in the current market environment [3][6]. - The gaming market is highlighted as entering a favorable valuation zone, with specific companies like Giant Network and Century Huatong recommended for investment [6][16]. - The film market is recovering, with the total box office reaching approximately 437.06 billion yuan, which is about 78% of the 2019 level, indicating a strong recovery trajectory [19][20]. Market Performance Review - The media sector index fell by 3.86% last week, underperforming the CSI 300 index, which rose by 1.28%, resulting in a relative underperformance of 5.14% [9][10]. - The total market capitalization of the media sector is approximately 19,595.28 billion yuan, with a circulating market value of 17,850.96 billion yuan [3]. Gaming Market Insights - Tencent's products dominate the iOS gaming market, with titles like "Peace Elite" and "Love and Deep Space" performing strongly [16]. - Upcoming game releases include "Rust" and "PUBG: BLACK BUDGET," which are expected to generate significant interest [18]. Film Market Overview - The film "Zootopia 2" has achieved a box office of nearly 23 billion yuan within six days, with projections suggesting it could help the total annual box office exceed 500 billion yuan [27]. - The total box office for the year has reached 437.06 billion yuan, with a recovery rate of approximately 78% compared to 2019 [19][22]. Important News and Company Announcements - The establishment of the first micro-short drama export base in Shanghai marks a significant development in the media industry [27]. - Tencent's Magic Cube Studio celebrated its 15th anniversary, announcing major updates for several IP titles, indicating ongoing innovation in the gaming sector [28].