Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The financial regulatory authority released a draft for the management of asset management product information disclosure, aiming to standardize disclosure practices for public bank wealth management products [9]. - Several wealth management companies have responded to regulatory calls by joining the insurance asset management association and have announced fee reductions for various products [9]. - The cash management products' annualized yield remained stable at 1.44%, while money market funds saw a slight decline to 1.36% [11]. - The bank wealth management product's net loss ratio increased to 1.29%, indicating a slight rise in pressure on the liability side [20]. Industry and Regulatory Dynamics - On May 23, the financial regulatory authority published a draft for the management of asset management product information disclosure, focusing on public bank wealth management products [9]. - Wealth management companies, including Huaxia Wealth, Agricultural Bank Wealth, and others, have joined the insurance asset management association [9]. - Multiple wealth management companies have announced reductions in management fees, sales service fees, and custody fees for their products [9]. Peer Innovation Dynamics - Xinyin Wealth launched a humanoid robot-themed product, aiming for excess returns through active stock selection [10]. - Zhaoyin Wealth introduced an ESG technology-themed product, aligning with green finance and technology finance policies [10]. - Puyin Wealth issued its first aid to Tibet-themed product, which quickly sold out during the fundraising period [10]. Yield Performance - Last week, cash management products recorded a 7-day annualized yield of 1.44%, unchanged from the previous week [11]. - Money market funds saw a slight decline in their 7-day annualized yield to 1.36%, down by 1 basis point [11]. - The yield of pure fixed-income and fixed-income plus products decreased across various maturities [14]. Net Loss Ratio Tracking - The net loss ratio for bank wealth management products was 1.29%, an increase of 0.29% from the previous week [20]. - The net loss ratio is positively correlated with credit spreads, indicating potential redemption pressure when it exceeds certain thresholds [20]. - The recent increase in the net loss ratio suggests a need for close monitoring of credit spread trends [20].

New Stock Offerings - ST Yazhen (603389) will have a tender offer period from June 10, 2025, to July 9, 2025[1] - ST Renle (002336) will enter the delisting arrangement period starting June 13, 2025[1] - ST Longyu (603003) and ST Pengbo (600804) will both enter the delisting arrangement period starting June 10, 2025[1] Market Alerts - ST Sailong (002898) has reported severe abnormal fluctuations[1] - ST Longjin (002750) entered the delisting arrangement period on June 6, 2025[1] - ST Chuntian (600381) and Huamai Technology (603042) have announcements dated June 6, 2025, regarding their market status[1] Other Notable Stocks - Zhongqi New Materials (001212) and Feiling'er (603226) have announcements dated June 6, 2025[1] - ST Jinbi (002762) and Guangsheng Nonferrous (600259) reported significant updates on June 5, 2025[1] - ST Baili (603959) and Shandong Glass Fiber (605006) have announcements dated June 5, 2025, regarding their market activities[1]

证券研究报告——宏观策略月报 全球贸易谈判关键阶段，以稳应变 ——2025年6月资产配置报告 HWABAO SECURITIES 2025年6月5日 分析师： 蔡梦苑（执业证书编号：S0890521120001） 分析师： 郝一凡（执业证书编号：S0890524080002） 分析师： 刘 芳（执业证书编号：S0890524100002） ► 请仔细阅读报告结尾处风险提示及免责声明 宏观主线梳理 宏观主线梳理 美国关税政策仍具不确定性 海外宏观 Ø 美国关税政策仍具较高不确定性，最终结果或趋于全球10%-15%、中国30%-54%的税率水平 关税扰动短期影响有限，中期压力值得关注，静待增量政策出台 Ø 市场担忧减税法案带来美国财政赤字难以持续 u 5月23日，美国众议院通过 "一个大美丽法案"。根据宾夕法尼亚大学测算，若法案最终通过，未来十年或将净增3.3万亿美元赤 字。市场担忧该法案带来的财政赤字难以持续，叠加穆迪下调美国主权信用评级，这均导致5月下旬美国市场再现股债汇三杀。 u 后续关税存在上行空间及不可预测性。在6-7月与各国达成关税贸易协定后，逐步明确的关税收入可缓解市场对财政赤字的担忧， 减税法案有 ...

New Stock Listings - Zhongce Rubber (603049) issued at a price of 46.50[1] - Youyou Green Energy (301590) issued at a price of 89.60[1] Delisting and Trading Alerts - ST Longyu (603003) enters delisting period starting June 10, 2025[1] - ST Pengbo (600804) enters delisting period starting June 10, 2025[1] - ST Longjin (002750) enters delisting period starting June 6, 2025[1] Abnormal Fluctuations - Yong'an Pharmaceutical (002365) reported severe abnormal fluctuations[1] - ST Baili (603959) reported severe abnormal fluctuations[1] - ST Jinyi (002762) reported severe abnormal fluctuations[1] Recent Announcements - ST Huaxi (002630) announced significant changes on June 3, 2025[1] - ST Aiai (603580) reported significant changes on May 29, 2025[2]

New Stock Issuance - The stocks *ST龙宇 (603003), *ST鹏博 (600804), and *ST龙津 (002750) are entering the delisting arrangement period starting June 10, 2025[1] - 联合化学 (301209) and 中邮科技 (688648) have recent announcements regarding their stock activities[1] - 申科股份 (002633), 科兴制药 (688136), and 新大正 (002968) have announcements dated June 4, 2025[1] Market Alerts - 中洲特材 (300963) reported severe abnormal fluctuations in stock prices[1] - ST联合 (600358) and 中科金财 (002657) have recent announcements indicating market activity[1] - 退市整理期 for multiple stocks is set to begin on June 6 and June 10, 2025[1] Trading Insights - Stocks such as *ST四通 (603838) and *ST荣控 (000668) have been flagged for abnormal trading activities[2] - The report includes a list of stocks with significant trading volume changes, indicating potential investment opportunities[3] - The overall market sentiment appears cautious with several stocks under scrutiny for volatility[2]

Report Overview - The report introduces the ETF arbitrage strategy, a unique absolute return strategy that accumulates small price differences into stable returns [7]. ETF Core Features - ETF, or "Exchange-Traded Fund", is a "transparent basket" that can be traded like stocks. It is an open-ended fund listed on the exchange, with its net value publicly disclosed daily [8]. - ETF has two trading markets: the primary market, where investors can exchange a basket of assets for ETF shares, and the secondary market, where ETFs are traded like stocks. Price differences between the two markets create arbitrage opportunities [9][10]. ETF Arbitrage Strategy's Income Realization Path - The core logic is to capture and exploit short - term pricing deviations. The most common method is ETF redemption arbitrage, including discount and premium arbitrage. In discount arbitrage, buy ETFs in the secondary market and redeem them in the primary market; in premium arbitrage, buy a basket of assets to subscribe for ETFs in the primary market and sell them in the secondary market [12][13]. - There are also cross - market arbitrage and related - variety arbitrage, which are used as supplementary strategies due to fewer opportunities [15]. Key Features of ETF Arbitrage Strategy - Single - arbitrage profit margins are small, usually around 0.5% or lower. The final return depends on continuous accumulation [16]. - The strategy requires high - speed and timely trading. Opportunities are fleeting, and all arbitrageurs compete to compress expected returns [16]. - The strategy faces challenges such as high trading costs, potential calculation errors of asset values, restrictions on primary - market subscriptions and redemptions, and increased complexity during extreme market conditions [17].

Quantitative Factors and Models Summary Quantitative Factors and Construction Methods 1. **Factor Name**: Market Style Factor **Construction Idea**: This factor tracks the market's preference for small-cap versus large-cap stocks and growth versus value stocks over the observed period **Construction Process**: - The factor is divided into two dimensions: size (small-cap vs. large-cap) and style (growth vs. value) - The factor measures the relative performance of small-cap stocks compared to large-cap stocks and growth stocks compared to value stocks - Observations include the directional bias (e.g., small-cap preference) and the volatility of these style preferences **Evaluation**: The factor indicates a market preference for small-cap and growth stocks, but with increased volatility, suggesting instability in market style trends [11][12] 2. **Factor Name**: Market Structure Factor **Construction Idea**: This factor evaluates the dispersion and concentration of returns across industries and stocks to assess market structure dynamics **Construction Process**: - Industry excess return dispersion is calculated to measure the spread of returns across different sectors - Metrics such as the proportion of rising constituent stocks and the turnover concentration of the top 100 stocks and top 5 industries are tracked - Changes in these metrics are used to infer market structure stability and concentration trends **Evaluation**: The factor shows a decline in industry return dispersion and a slight increase in stock and industry concentration, indicating a more concentrated market structure [11][12] 3. **Factor Name**: Market Activity Factor **Construction Idea**: This factor measures market activity through volatility and turnover rates **Construction Process**: - Index volatility is calculated to assess market fluctuations - Turnover rates, particularly for indices like the SSE 50, are tracked to gauge trading activity - Observations include changes in these metrics over time **Evaluation**: The factor reveals a slight increase in market volatility but a continued decline in turnover rates, especially for the SSE 50, indicating reduced market activity [11][12] 4. **Factor Name**: Commodity Market Factors **Construction Idea**: These factors analyze trends, momentum, volatility, and liquidity in commodity markets **Construction Process**: - **Trend Strength**: Tracks the continuation of trends in sectors like energy and metals - **Basis Momentum**: Measures the momentum of basis changes, with specific focus on sectors like agriculture and metals - **Volatility**: Assesses the level of price fluctuations in different commodity sectors - **Liquidity**: Evaluates the trading activity and ease of transactions in commodity markets **Evaluation**: The factors highlight strong trends in energy and metals, low basis momentum in agriculture, high volatility in energy, and strong liquidity in energy and metals [23][27] 5. **Factor Name**: Option Market Factors **Construction Idea**: These factors assess market sentiment and risk expectations through option pricing metrics **Construction Process**: - **Implied Volatility**: Tracks the implied volatility of options on indices like SSE 50 and CSI 1000 - **Skewness**: Measures the relative pricing of put options versus call options to infer market sentiment - **Open Interest**: Monitors changes in open interest to gauge market positioning **Evaluation**: The factors suggest stable short-term sentiment but highlight potential downside risks for small-cap stocks based on skewness and rising open interest in put options [33][34] 6. **Factor Name**: Convertible Bond Market Factors **Construction Idea**: These factors analyze valuation and liquidity dynamics in the convertible bond market **Construction Process**: - **Valuation Metrics**: Tracks metrics like the premium rate of bonds near par value and the proportion of low-premium bonds - **Liquidity Metrics**: Monitors trading volume and credit spreads **Evaluation**: The factors indicate a slight recovery in valuation metrics but a rise in low-premium bonds, with stable trading volumes and narrowing credit spreads [35][37] Factor Backtesting Results 1. **Market Style Factor**: - Small-cap preference observed - Growth style preference observed - Increased volatility in both dimensions [11][12] 2. **Market Structure Factor**: - Industry return dispersion decreased - Stock and industry concentration slightly increased [11][12] 3. **Market Activity Factor**: - Market volatility slightly increased - Turnover rates decreased, especially for SSE 50 [11][12] 4. **Commodity Market Factors**: - Strong trends in energy and metals - Low basis momentum in agriculture - High volatility in energy - Strong liquidity in energy and metals [23][27] 5. **Option Market Factors**: - Stable implied volatility for SSE 50 and CSI 1000 - Skewness favors put options for CSI 1000 - Rising open interest in put options for CSI 1000 [33][34] 6. **Convertible Bond Market Factors**: - Premium rates near par value slightly recovered - Proportion of low-premium bonds increased - Trading volumes stable - Credit spreads narrowed [35][37]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Last week (2025.05.26 - 2025.05.30), the bond market oscillated and closed lower. The CBA00201 index basically closed flat, while the CBA00203 index closed down 0.08%. Yields of interest - rate bonds generally rose, with short - term yields rising more than long - term ones. Credit bond yields also generally increased, and major credit spreads mainly compressed [3][10]. - The capital market was relatively loose, but the economic fundamentals remained weak. The tariff policy was volatile, putting pressure on US Treasury bonds. The popularity of REITs continued, and assets were accelerating into the market [3]. - On May 29, 2025, the general pledge repurchase business of the first 9 credit bond ETFs was officially launched, which is conducive to the rapid development of the credit bond ETF market [4]. Summary by Directory 1. Weekly Market Observation 1.1. Pan - fixed - income Market Review and Observation - **Bond Market Review**: The bond market oscillated and closed lower last week. Interest - rate bond yields generally rose, and credit bond yields also increased. Major credit spreads mainly compressed. Specifically, from Monday to Wednesday, short - term credit bond yields rose, and long - term ones oscillated. On Thursday and Friday, due to the change in Trump's tariff policy, credit yields fluctuated significantly following interest rates [10]. - **Capital and Economic Fundamentals**: In May, the capital market was generally loose. After the interest rate cut and reserve requirement ratio cut, the monthly central levels of R001 and R007 declined. Affected by the end - of - month effect last week, the central level of R007 rose slightly to 1.70%. The economic fundamentals were still weak. Although the high - frequency data rebounded due to the rush to export after the reciprocal tariff reduction, domestic demand remained weak. The May PMI rebounded seasonally, but the manufacturing PMI was still below 50%. The new export orders in the manufacturing industry rebounded but were still lower than the March data and the first - quarter average. High - frequency data showed an increase in container shipping bookings to the US, which might improve the June fundamentals. However, domestic demand - priced commodities such as rebar, cement, glass, and asphalt saw price declines. The bond market faces both positive and negative factors, and a cautious approach of high - selling and low - buying may be appropriate [11]. - **Tariff Policy and US Treasury Bonds**: Since the reciprocal tariff implementation, US Treasury bonds have experienced two significant declines. In May, after the three major rating agencies downgraded US Treasury bonds, the market re - evaluated US debt risks. Last week, due to stable US economic data and a court ruling, US Treasury bonds rebounded slightly. Currently, the trading focus of US Treasury bonds has shifted back to the US fundamentals. There are risks of disorderly increases in US Treasury bond yields due to fiscal risks and tariff uncertainties. The stable US fundamentals have postponed the expected time of the Fed's interest rate cut, and tariff issues may reduce overseas demand for US Treasury bonds and cause short - term liquidity problems [12]. - **REITs Market**: REITs have both equity and bond characteristics. This year, due to factors such as the decline in bond yields and the expectation of economic recovery, the popularity of REITs has continued, with property - type assets performing better. After the asymmetric interest rate cut, REITs have entered a high - level consolidation phase, but some specific assets still have upward momentum. In the primary market, high - quality assets are entering the market at an accelerated pace. Last week, the expansion of two REITs was approved. Overall, the C - REITs market is in a stage of rapid expansion, but there are risks in the primary and secondary markets [13]. 1.2. Public Fund Market Dynamics - On May 29, 2025, the general pledge repurchase business of the first 9 credit bond ETFs was officially launched, expected to take effect on June 6. This business can broaden financing channels for investors, improve capital efficiency, and promote the development of the credit bond ETF market. Its application scenarios include obtaining liquidity through pledge, quickly switching asset allocation, and increasing returns through leverage [4][15]. 2. Pan - fixed - income Fund Index Performance Tracking | Index Classification | This Week | Last Month | YTD | Since Strategy Launch | | --- | --- | --- | --- | --- | | Short - term Bond Fund Preferred Index | 0.01% | 0.12% | 0.39% | 3.79% | | Medium - and Long - term Bond Fund Preferred Index | - 0.02% | 0.21% | 0.55% | 6.18% | | Low - volatility Fixed - income + Preferred Index | - 0.02% | 0.35% | 0.58% | 1.84% | | Medium - volatility Fixed - income + Preferred Index | - 0.01% | 0.53% | 0.56% | 1.08% | | High - volatility Fixed - income + Preferred Index | - 0.13% | 0.90% | 2.49% | 2.25% | | Convertible Bond Fund Preferred Index | - 0.03% | 1.05% | 3.68% | 6.92% | | QDII Bond Fund Preferred Index | 0.48% | - 0.48% | 2.21% | 7.14% | | REITs Fund Preferred Index | 0.90% | 5.80% | 29.00% | 37.79% | 2.1. Pure Bond Index Tracking - **Short - term Bond Fund Preferred Index**: Aims at liquidity management, pursues a smooth upward curve while controlling drawdowns. It consists of 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 [17][18]. - **Medium - and Long - term Bond Fund Preferred Index**: Seeks stable returns by investing in medium - and long - term pure bond funds while controlling drawdowns. It aims for excess returns relative to the medium - and long - term bond fund index and a smooth upward net value curve. It selects 5 funds each period, balancing coupon strategies and band operations, and adjusting the duration and the ratio of credit bond funds to interest - rate bond funds according to market conditions [19]. 2.2. Fixed - income + Index Tracking - **Low - volatility Fixed - income + Preferred Index**: The equity center is set at 10%, and 10 funds are selected each period. It focuses on fixed - income + funds with an equity center of less than 15% in the past three years and recently, emphasizing both risk - return ratios and investment experience [23]. - **Medium - volatility Fixed - income + Preferred Index**: The equity center is 20%, and 5 funds are selected each period. It selects fixed - income + funds with an equity center between 15% and 25% in the past three years and recently, aiming for a certain level of performance elasticity while considering risk - return ratios [24]. - **High - volatility Fixed - income + Preferred Index**: The equity center is 30%, and 5 funds are selected each period. It selects fixed - income + funds with an equity center between 25% and 35% in the past three years and recently, focusing on funds with strong stock - picking abilities in the equity part and stable returns in the bond part [28]. 2.3. Convertible Bond Fund Preferred Index It selects 5 convertible bond funds from a sample space of funds with a high proportion of convertible bonds in their bond portfolios. The selection is based on an evaluation system considering factors such as fund performance, fund manager capabilities, and market adaptability [30][31]. 2.4. QDII Bond Fund Preferred Index Tracking It consists of 6 QDII bond funds with stable returns and good risk control, investing in overseas bonds in regions such as the global market, Asia, and emerging markets, including investment - grade and high - yield products [32]. 2.5. REITs Fund Preferred Index Tracking It consists of 10 REITs funds with stable operations, reasonable valuations, and a certain degree of elasticity, based on the types of underlying assets [36].

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - Last week (May 26 - May 30, 2025), the A - share market first rose on high volume due to the easing of Sino - US trade negotiations and then entered a volatile adjustment. The sector rotation speed has accelerated recently, and the volatile market pattern remains unchanged [11]. - The innovation drug sector continued to rise last week, driven by multiple favorable events. However, the market heat may have reached a phased high, and the phased market of innovation drugs may end once the strong logical support weakens [12]. - The "new consumption" market has spread from the prosperity of leading stocks to a beta market, and has now entered the marginal spread stage, but its sustainability is uncertain [13]. - The technology sector has reached a stage where layout directions can be explored, as small - cap stocks show signs of peaking and the TMT trading volume as a proportion of the total A - share trading volume has fallen to a relatively low level [14]. 3. Summary by Relevant Catalogs 3.1 Weekly Market Observation 3.1.1 Equity Market Review and Observation - The A - share market first rose on high volume and then oscillated last week. The WanDe All - A Index fell 0.02% for the whole week. The environmental protection, pharmaceutical biology, national defense and military industry, agriculture, forestry, animal husbandry and fishery sectors led the gains, while the automobile, power equipment, non - ferrous metals, and comprehensive sectors underperformed [11]. - As of May 30, the trading volume proportions of the CSI 1000 and CSI 2000 indexes in the Shanghai and Shenzhen stock markets reached 19.59% and 33.26% respectively, both at 5 - year peak levels. Since 2020, the trading volume proportion of the CSI 2000 index has risen from less than 15% to over 30%, while that of the CSI 300 index has dropped from nearly 50% to less than 20%. The A - share market is a stock and shrinking market, and market participants are engaging in a stock game in small - and medium - cap stocks [11]. - The innovation drug sector continued to rise, driven by the approval of 11 innovative drugs from 8 Chinese companies on May 29 and important clinical data disclosed at the 2025 ASCO Annual Meeting from May 30 - June 3. However, the market heat may have reached a peak, and the phased market may end if strong logical support weakens [12]. - The "new consumption" market has spread from leading stocks to various directions such as new - listed Hong Kong - listed tea drinks, A - share pet and beauty care sectors. The market focus has shifted from pet food to non - liquor products, and the market has entered the marginal spread stage with uncertain sustainability [13]. - The technology sector has reached a stage for layout, as small - cap stocks show signs of peaking and the TMT trading volume proportion has declined. Upcoming industrial events in June may act as catalysts [14]. 3.1.2 Public Fund Market Dynamics - On May 30, 2025, the Shanghai Stock Exchange and China Securities Index Company optimized the compilation plan of the SSE 380 Index and launched the SSE 580 Index, forming a flagship broad - based index system of "SSE 50, SSE 180, SSE 380, and SSE 580". The index system covers 50% of the number of Shanghai - listed securities and nearly 90% of the market value [15]. - The SSE index system has established an "integrated two - wing" index brand of "flagship broad - based + science and technology innovation + dividend", which is an important part of promoting the entry of long - term funds into the market [16]. 3.2 Active Equity Fund Index Performance Tracking | Index Classification | Last Week | Last Month | Year - to - Date | Since Inception | | --- | --- | --- | --- | --- | | Active Stock Fund Preferred | - 0.12% | 1.45% | 4.59% | 5.44% | | Value Stock Fund Preferred | - 0.15% | 2.80% | 1.42% | 1.50% | | Balanced Stock Fund Preferred | 0.03% | 2.51% | 2.06% | - 0.17% | | Growth Stock Fund Preferred | - 0.01% | 0.94% | 9.74% | - 0.13% | | Pharmaceutical Stock Fund Preferred | 3.78% | 6.65% | 23.08% | 6.62% | | Consumption Stock Fund Preferred | - 0.93% | 3.15% | 7.37% | 0.46% | | Technology Stock Fund Preferred | - 0.01% | - 0.44% | 2.05% | 3.65% | | High - end Manufacturing Stock Fund Preferred | - 0.30% | - 0.95% | - 4.28% | - 8.90% | | Cyclical Stock Fund Preferred | - 0.81% | 3.01% | 4.22% | - 3.14% | [17] 3.2.1 Active Stock Fund Preferred - The portfolio selects 15 funds each period, with equal - weight allocation. Core positions select active equity funds based on performance competitiveness and style stability in value, balanced, and growth styles, and balance the style distribution according to the CSI Active Stock Fund Index [18]. 3.2.2 Value Stock Fund Preferred - The value style includes deep - value and quality - value styles. The index is composed of 10 funds selected from deep - value, quality - value, and balanced - value styles based on multi - period style classification [20]. 3.2.3 Balanced Stock Fund Preferred - Balanced - style fund managers balance stock valuation and growth, and switch to stocks with higher cost - performance. The index is composed of 10 funds selected from relatively balanced and value - growth styles based on multi - period style classification [21]. 3.2.4 Growth Stock Fund Preferred - The growth style aims to capture the double - click opportunity of performance and valuation during a company's high - growth stage. The index is composed of 10 funds selected from active - growth, quality - growth, and balanced - growth styles based on multi - period style classification [24]. 3.2.5 Pharmaceutical Stock Fund Preferred - The index selects funds with an average purity of no less than 60% in the pharmaceutical industry based on the intersection market value of fund equity holdings and the representative index (CITIC Pharmaceutical). An evaluation system is established, and 15 funds are selected to form the index [24]. 3.2.6 Consumption Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the consumption industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Automobile, Home Appliances, etc.). An evaluation system is established, and 10 funds are selected to form the index [29]. 3.2.7 Technology Stock Fund Preferred - The index selects funds with an average purity of no less than 60% in the technology industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Electronics, etc.). An evaluation system is established, and 10 funds are selected to form the index [30]. 3.2.8 High - end Manufacturing Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the high - end manufacturing industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Construction, etc.). An evaluation system is established, and 10 funds are selected to form the index [34]. 3.2.9 Cyclical Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the cyclical industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Petroleum & Petrochemical, etc.). An evaluation system is established, and 5 funds are selected to form the index [36].

Group 1: Overview of Grid Trading Strategy - The essence of "grid trading" is a high buy low sell trading strategy, which does not predict market trends but utilizes natural price fluctuations within a certain range 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 transaction costs, good liquidity, and high volatility, with equity ETFs being relatively suitable for grid trading [3][13] Group 2: Focused ETF Grid Strategy Targets - Game ETF (159869.SZ): The domestic gaming industry is experiencing three major opportunities driven by policy, AI empowerment, and overseas penetration. As of May 2025, a total of 654 gaming licenses have been issued, with 144 licenses issued in May alone, marking a two-year high [3][14] - Medical ETF (512170.SH): Long-term, global aging drives continuous demand for medical services. The 2025 government work report emphasizes optimizing drug procurement policies and supporting the development of innovative drugs and medical devices [4][18] - Chinese Concept Internet ETF (159605.SZ): The 2025 government work report reiterates the development of new productivity and the integration of technological and industrial innovation. The ETF focuses on leading Chinese internet companies and has a PE-TTM of 17.09 as of May 30, 2025, indicating valuation attractiveness [5][20] - Rare Earth ETF (516780.SH): Rare earths are irreplaceable in various high-tech fields. China holds 40% of global rare earth reserves and 70% of production. Recent export controls are expected to widen the global supply-demand gap, pushing prices higher [7][23] Group 3: Additional ETF Grid Strategy Targets - The report suggests that investors can use grid trading strategies by selecting several suitable, low-correlation ETFs to form a diversified portfolio, enhancing capital utilization and risk dispersion [25] - A table of additional ETF targets is provided, including various sectors such as technology, healthcare, and consumer goods, indicating a broad range of investment opportunities [26][28]