1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Due to the intensified military conflict between the US - Israel and Iran at the end of February and the blockade of the Strait of Hormuz, which led to rising oil prices, the market is worried about the resurgence of US inflation. The US bond yields and the US dollar index rebounded, suppressing the prices of risk - assets globally. In the short term, the ongoing Middle - East geopolitical conflict is the main factor suppressing market risk appetite [2][12]. - In the context of the impact on risk appetite, the financial style can be used as a defensive allocation, and attention should be paid to the volatility risk of technology - growth stocks at relatively high levels. Future focus should be on the evolution of the US - Iran conflict, the navigation situation in the Strait of Hormuz, and the impact of oil price trends on global inflation and national monetary policies [3][13]. - The bond market is currently in a situation of mixed long and short factors. There may be short - term emotional suppression on the bond market, but there is also a demand for capital hedging. The market is still in a state of game, with possible short - term corrections in the shock. It is recommended to choose the opportunity to layout after the correction [4][14]. 3. Summary According to the Directory 3.1 Weekly Market Observation 3.1.1 Equity Market Review and Observation - Global risk - asset prices were generally under pressure. The domestic stock market showed a trend of "first decline and then stability" with relatively low volatility compared to overseas markets. The Shanghai Composite Index fell 0.93%, the ChiNext Index fell 2.45%, and the Hang Seng Index fell 3.28%. The value style outperformed the growth style, and large - cap stocks were relatively more resistant to decline. The average daily trading volume of the whole A - shares was 2641.8 billion, showing a month - on - month increase. The energy, military, and precious metal sectors performed strongly [12]. - The Middle - East situation escalated over the weekend. Iran's selection of a new leader and drone attacks may lead to extended conflicts and energy supply shortages. Domestically, the Two Sessions announced relevant policies, which were in line with market expectations [12]. 3.1.2 Pan - Fixed - Income Market Review and Observation - Last week, the bond market continued to fluctuate. The 1 - year Treasury yield dropped 3.10BP to 1.39%, the 10 - year Treasury yield rose 0.57BP to 1.78%, and the 30 - year Treasury yield rose 0.86BP to 2.28%. The short - end yield declined significantly [14]. - The US bond yields rose across the board. The 1 - year US bond yield rose 7BP to 3.55%, the 2 - year US bond yield rose 18BP to 3.56%, and the 10 - year US bond yield rose 18BP to 4.15%. The CSI REITs total return index fell 0.79% to 1027.62 points, with data centers and consumer sectors leading the decline. Nine new public REITs made progress in the primary market [15]. 3.2 Fund Index Performance Tracking 3.2.1 Equity Strategy Theme - Based Index - **Active Stock Fund Selection**: The index selects 15 funds each period with equal - weight allocation. The core positions select active equity funds based on performance competitiveness and style stability, and balance the style distribution according to the CSI equity - biased fund index. The performance benchmark is the CSI equity - biased fund index [19]. 3.2.2 Investment Style - Based Index - **Value Stock Fund Selection**: It includes deep - value and quality - value styles. Ten funds of deep - value, quality - value, and balanced - value styles are selected to form the index. The performance benchmark is the CSI 800 Value Index [19]. - **Balanced Stock Fund Selection**: Balanced - style fund managers balance stock valuation and growth. Ten funds of relatively balanced and value - growth styles are selected to form the index. The performance benchmark is the CSI 800 [22]. - **Growth Stock Fund Selection**: It aims to capture the performance and valuation double - click opportunities of high - growth companies. Ten funds of active - growth, quality - growth, and balanced - growth styles are selected to form the index. The performance benchmark is the 800 Growth Index [26]. 3.2.3 Industry Theme - Based Index - **Pharmaceutical Stock Fund Selection**: Funds are selected based on the intersection market value ratio of equity holdings and the representative index. An evaluation system is established, and 15 funds are selected to form the index. The performance benchmark is the CSI All - Index Pharmaceutical and Healthcare Index [28]. - **Consumer Stock Fund Selection**: Funds are selected according to the intersection market value ratio of equity holdings and relevant representative indices. Ten funds are selected to form the index. The performance benchmark is the consumer - theme fund index [31]. - **Technology Stock Fund Selection**: Funds are selected based on the intersection market value ratio of equity holdings and relevant representative indices. Ten funds are selected to form the index. The performance benchmark is the technology - theme fund index [35]. - **High - end Manufacturing Stock Fund Selection**: Funds are selected according to the intersection market value ratio of equity holdings and relevant representative indices. Ten funds are selected to form the index. The performance benchmark is the high - end manufacturing - theme fund index [38]. - **Cyclical Stock Fund Selection**: Funds are selected based on the intersection market value ratio of equity holdings and relevant representative indices. Five funds are selected to form the index. The performance benchmark is the CS Cyclical Index [41]. 3.2.4 Money Enhancement Index - **Money Enhancement Strategy**: The index aims at liquidity management, pursues a curve that surpasses money funds and is smooth and upward. It mainly allocates money - market funds and inter - bank certificate of deposit index funds. The performance benchmark is the CSI Money Fund Index [46]. 3.2.5 Pure Bond Index - **Short - Term Bond Fund Selection**: The index aims at liquidity management, pursues a smooth and upward curve while controlling drawdowns. Five funds with stable long - term returns, strict drawdown control, and significant absolute - return capabilities are selected to form the index. The performance benchmark is 50% * Short - Term Pure Bond Fund Index + 50% * Ordinary Money - Type Fund Index [48]. - **Medium - and Long - Term Bond Fund Selection**: The index invests in medium - and long - term pure bond funds, pursues stable returns while controlling drawdowns, and selects five funds with both returns and drawdown control. It adjusts the duration and the proportion of credit bond funds and interest - rate bond funds according to market conditions [51]. 3.2.6 Fixed - Income + Index - **Low - Volatility Fixed - Income + Selection**: The equity center is positioned at 10%. Ten funds with an equity center within 15% in the past three years and recently are selected. The performance benchmark is 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index [52]. - **Medium - Volatility Fixed - Income + Selection**: The equity center is positioned at 20%. Five funds with an equity center between 15% - 25% in the past three years and recently are selected. The performance benchmark is 20% CSI 800 Index + 80% ChinaBond New Composite Full - Price Index [55]. - **High - Volatility Fixed - Income + Selection**: The equity center is positioned at 30%. Five funds with an equity center between 25% - 35% in the past three years and recently are selected. The performance benchmark is 30% CSI 800 Index + 70% ChinaBond New Composite Full - Price Index [56]. 3.2.7 Other Pan - Fixed - Income Index - **Convertible Bond Fund Selection**: Funds with a convertible - bond investment ratio meeting certain conditions are used as the sample space. An evaluation system is established, and five funds are selected to form the index [60]. - **QDII Bond Fund Selection**: Six funds with stable returns and good risk control are selected according to credit and duration conditions to form the index [64]. - **REITs Fund Selection**: Ten funds with stable operation, reasonable valuation, and certain elasticity are selected according to the underlying asset types to form the index [65].

Group 1: Bond Market Insights - The bond market remains favorable, awaiting a correction for positioning. The net financing scale of government bonds in March is slightly lower than in February, with limited impact from increased trading days. Historically, bond yields tend to decline after the Two Sessions, supported by increased demand for bond allocation due to widening loan-to-deposit growth differentials and uncertainties in the Middle East [1][12] - The current 10-year government bond yield is around 1.79%, with limited short-term upside risk. It is expected to maintain a range-bound fluctuation. If yields rise to 1.82%-1.83% due to short-term disturbances, it may present a slight positioning opportunity [1][12] Group 2: Stock Market Analysis - The stock market is expected to adopt a steady approach, favoring large-cap cyclical stocks. Based on historical trends from the Two Sessions, growth-style sectors may face increased profit-taking pressure, while large-cap blue-chip and cyclical styles are likely to perform better in stabilizing the index [2][14] - The geopolitical risks in the Middle East are expected to suppress global market risk appetite until they ease. In the short term, attention should be given to sectors such as non-ferrous metals, chemicals, energy, and high-dividend stocks from Hong Kong central enterprises. From mid-March to mid-April, the focus may shift back to sectors with high earnings certainty, such as AI hardware, semiconductors, electric power grids, and new energy [2][14] Group 3: Economic Indicators and Government Policies - The government work report released on March 5 sets the economic growth target for 2026 at 4.5%-5% and aims for a consumer price increase of around 2%. The policy tone is more pragmatic, emphasizing high-quality development [8][9] - The report outlines ten key tasks for 2026, including building a strong domestic market, fostering new growth drivers, accelerating technological self-reliance, and enhancing risk prevention and safety capabilities [9]

Investment Rating - The report does not explicitly provide an investment rating for the banking wealth management industry Core Insights - The banking wealth management industry is undergoing a significant transformation with a shift from traditional fixed benchmarks to market interest rate or index-linked benchmarks, driven by regulatory constraints and market conditions. This transition aims to create a healthier ecosystem characterized by transparency, real returns, and manageable risks [4][11][12] Summary by Sections 1. Regulatory and Industry Dynamics - Several wealth management companies, including Xingyin Wealth Management and Puyin Wealth Management, are adjusting their performance benchmarks to align with market rates, moving away from traditional fixed benchmarks [4][11] - The new regulations require detailed disclosure of performance benchmarks, linking them closely to investment strategies and market performance, which is expected to enhance the credibility of wealth management products [11][12] 2. Peer Innovation Dynamics - Puyin Wealth Management has launched a "Cycle+" themed wealth management product that combines fixed income with cyclical industry investments, utilizing a proprietary quantitative scoring model to adjust asset allocations dynamically [13][15] - Ningyin Wealth Management introduced a "Quantitative + IPO" composite strategy product that aims to provide stable returns through a layered asset allocation strategy, combining bonds with IPO strategies to enhance yield [14][15] 3. Yield Performance - For the week of February 23 to March 1, 2026, cash management products recorded a 7-day annualized yield of 1.28%, up 2 basis points from the previous week, while money market funds reported a yield of 1.16%, also up 2 basis points [6][16] - The yield performance of pure fixed income products varied across different maturities, with most fixed income + products showing an increase in yields [18][24] 4. Net Value Tracking - The net value ratio of banking wealth management products was 0.61%, an increase of 0.20 percentage points compared to the last trading week before the Spring Festival, indicating a potential upward pressure on the net value ratio if credit spreads continue to widen [27][31]

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 within a certain range to generate profits, making it suitable for frequently fluctuating markets [3][11] - Characteristics of suitable grid trading targets include: selecting on-market targets, stable long-term trends, low trading costs, good liquidity, and high volatility. Equity ETFs are considered relatively suitable for grid trading [3][11] Group 2: ETF Grid Strategy Target Analysis - The Hong Kong Stock Connect Non-Bank ETF (513750.SH) benefits from an increase in the sales proportion of participating insurance products, which helps optimize the liability cost for insurance funds. In Q3 2025, the net profit of the top five listed insurance companies in A-shares reached CNY 426.04 billion, a year-on-year increase of 33.54%, driven by improved investment returns in stocks and equity funds [3][12] - The Robot ETF (159530.SZ) reflects the maturity of China's robotics industry and the arrival of a commercialization threshold, with significant advancements in AI technology expanding the commercial boundaries of robots in various sectors such as service, healthcare, and companionship [4][15] - The Tourism ETF (159766.SZ) saw record-breaking data during the Spring Festival, with 596 million domestic trips taken, an increase of 95 million from 2025, and total spending of CNY 803.48 billion, up CNY 126.48 billion year-on-year. This indicates a strong recovery in consumer spending in tourism, positioning it as a key driver for economic growth [5][6][17]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the first week after the Spring Festival (2026.02.24 - 2026.02.27), the market rebounded moderately, with broad - based indexes approaching previous highs. Pro - cyclical sectors like real estate and chemicals rose due to price increase expectations, while the consumer sector回调 after concentrated holiday consumption. AI and other growth sectors spread to upstream semiconductor components. Before the specific policy directions are determined, the market may engage in games around the Two Sessions themes, and the macro - environment is generally optimistic before Trump's planned visit to China at the end of March [3][11][12]. - Last week (2026.02.24 - 2026.02.28), the bond market continued to fluctuate. Although there was an increase in the willingness to take profits after the festival, the sudden geopolitical conflict on Saturday led funds to flow into the bond market for safety, causing the yield to maturity to decline. In the short - term, the bond market is likely to continue the range - bound pattern [4][13]. - On February 27, 2026, the first four products under the new mutual - recognition fund regulations were approved by the China Securities Regulatory Commission, including two stock funds and two bond funds, which released the sales potential of mutual - recognition funds in the Chinese mainland [16]. 3. Summary According to the Directory 3.1 Weekly Market Observation 3.1.1 Equity Market Review and Observation - In the first week after the Spring Festival (2026.02.24 - 2026.02.27), the market rebounded moderately. The Shanghai Composite Index, CSI 300, ChiNext, CSI 500, and CSI 1000 rose by 1.98%, 1.08%, 1.05%, 4.32%, and 4.34% respectively. The total market trading volume rebounded to 2.5 trillion. However, several broad - based index ETFs faced slight capital outflows, with the share of some ETFs decreasing by over 2 billion [11]. - Pro - cyclical sectors like real estate and chemicals rose due to the relaxation of real - estate policies in Shanghai and the geopolitical situation in Iran. AI and other growth sectors spread to upstream semiconductor components, while the consumer sector回调 after the holiday [11]. - Geopolitical events may bring short - term investment opportunities in the stock market, but attention should be paid to whether the conflict will escalate. The market is in a policy observation window before the Two Sessions, and the "wait - and - see" attitude of investors is the core reason for the market's lack of a clear main line [12]. 3.1.2 Pan - Fixed - Income Market Review and Observation - Last week (2026.02.24 - 2026.02.28), the bond market continued to fluctuate. The 1 - year Treasury yield rose 0.23BP to 1.32%, the 10 - year Treasury yield fell 1.46BP to 1.78%, and the 30 - year Treasury yield rose 2.66BP to 2.27%. The short - term adjustment was mainly concentrated in the ultra - long end, and the 10 - year yield recovered quickly [13]. - The sudden geopolitical conflict on Saturday led funds to flow into the bond market for safety, causing the yield to maturity to decline. In the future, the risk of short - and medium - term adjustment is limited, and the short - term is likely to continue the range - bound pattern [13]. - Last week (2026.02.23 - 2026.02.27), U.S. Treasury yields declined across the board. The 1 - year U.S. Treasury yield fell 3BP to 3.48%, the 2 - year U.S. Treasury yield fell 10BP to 3.38%, and the 10 - year U.S. Treasury yield fell 11BP to 3.97% [14]. - Last week (2026.02.24 - 2026.02.27), the CSI REITs Total Return Index fell 1.08% to 1035.78 points. In the primary market, 10 new public REITs made progress [14][15]. 3.1.3 Public Fund Market Dynamics - On February 27, 2026, the first four products under the new mutual - recognition fund regulations were approved by the China Securities Regulatory Commission, including Morgan Asia Equity High - Yield Fund, Taiping Greater China New Dynamic Equity Fund, Fidelity Global Investment Fund - Hong Kong Bond Fund, and Huaxia Select RMB Investment - Grade Income Fund, covering two stock funds and two bond funds [16]. - The new regulations relaxed the sales ratio limit from 50% to 80%, releasing the sales potential of mutual - recognition funds in the Chinese mainland [16]. 3.2 Fund Index Performance Tracking 3.2.1 Equity Strategy Theme Index - **Active Equity Fund Selection**: The index selects 15 funds each period, with equal - weight allocation. The core positions select active equity funds according to performance competitiveness and style stability, and the style distribution is balanced according to the CSI Equity - Oriented Fund Index (930950.CSI). The performance benchmark is the CSI Equity - Oriented Fund Index (930950.CSI) [19][20]. 3.2.2 Investment Style Index - **Value Equity Fund Selection**: The index includes deep - value and quality - value styles. It selects 10 funds based on multi - period style classification. The performance benchmark is the CSI 800 Value Index (H30356.CSI) [23]. - **Balanced Equity Fund Selection**: The index selects 10 funds with relatively balanced and value - growth styles based on multi - period style classification. The performance benchmark is the CSI 800 (000906.SH) [23]. - **Growth Equity Fund Selection**: The index aims to capture the performance and valuation double - click opportunities of high - growth companies. It selects 10 funds based on multi - period style classification. The performance benchmark is the 800 Growth (H30355.CSI) [27][28]. 3.2.3 Industry Theme Index - **Pharmaceutical Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the representative index (CITIC Pharmaceutical). 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) [30][31]. - **Consumer Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and representative consumer - related indexes. It constructs an evaluation system and selects 10 funds. The performance benchmark is the consumer theme fund index (fitted by Huabao Securities' fund research and investment platform) [31]. - **Technology Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and representative technology - related indexes. 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) [35][36]. - **High - end Manufacturing Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and representative high - end manufacturing - related indexes. 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) [40][41]. - **Cyclical Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and representative cyclical - related indexes. 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) [43][44]. 3.2.4 Money Market Enhancement Index - **Money Market Enhancement Strategy**: The index aims for liquidity management and pursues a curve that exceeds money market funds. 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) [46]. 3.2.5 Pure Bond Index - **Short - Term Bond Fund Selection**: The index aims for liquidity management and pursues a smooth curve on the basis of controlling drawdown. 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% * Ordinary Money Market Fund Index [50]. - **Medium - and Long - Term Bond Fund Selection**: The index invests in medium - and long - term pure bond funds, aiming for stable returns while controlling drawdown. It selects 5 funds, balances coupon strategies and band - trading operations, and adjusts the duration and the ratio of credit bond funds and interest - rate bond funds according to market conditions [52]. 3.2.6 Fixed - Income Plus Index - **Low - Volatility Fixed - Income Plus Selection**: The index has an equity center of 10% and selects 10 funds each period. It focuses on funds with an equity center (total equity position after considering convertible bond and stock holdings) 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) [55]. - **Medium - Volatility Fixed - Income Plus Selection**: The index has an equity center of 20% and selects 5 funds each period. It selects funds with an equity center between 15% and 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) [58]. - **High - Volatility Fixed - Income Plus Selection**: The index has an equity center of 30% and selects 5 funds each period. It selects funds with an equity center between 25% and 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) [61]. 3.2.7 Other Pan - Fixed - Income Index - **Convertible Bond Fund Selection**: The index selects bond - type funds with an average proportion of convertible bond investment in bond market value of not less than 60% in the latest period and not less than 80% in the past four quarters. It constructs an evaluation system and selects 5 funds [63]. - **QDII Bond Fund Selection**: The index selects 6 funds with stable returns and good risk control based on credit and duration conditions. The underlying assets of QDII bond funds are overseas bonds [67]. - **REITs Fund Selection**: The index selects 10 funds with stable operation, reasonable valuation, and certain elasticity based on the underlying asset type. The underlying assets of REITs are mainly infrastructure projects [68].

Group 1 - The report emphasizes a cautious investment strategy due to rising external geopolitical risks, suggesting a focus on stability in the market [3][12] - In the bond market, there is an expectation of limited adjustment risks, with a forecast for the ten-year government bond yield to fluctuate around 1.8% [3][12] - The stock market is advised to focus on large-cap blue-chip and cyclical sectors, with a recommendation to monitor indices such as CSI 300, CSI 500, and CSI 1000 for potential opportunities [3][12] Group 2 - The report highlights a significant increase in domestic tourism during the Spring Festival, with 596 million trips taken and total spending reaching 803.48 billion, marking a historical high [9] - Recent policy adjustments in Shanghai aim to optimize housing regulations, including reducing purchase restrictions and improving housing loan policies [9] - The report notes that external factors, such as military actions in the Middle East, are impacting market sentiment and leading to increased volatility in overseas markets [10]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The report presents several ETF strategy indices built with the help of ETFs, aiming to convert quantitative models or subjective views into practical investment strategies. The performance and positions of these indices are tracked on a weekly basis [12]. 3. Summary by Relevant Catalogs 3.1 ETF Strategy Index Tracking - **Overall Performance Table**: The table shows the performance of various ETF strategy indices last week, including their index returns, comparison benchmarks, benchmark returns, and excess returns. For example, the Huabao Research Size Rotation ETF Strategy Index had a last - week index return of 0.37%, a benchmark (CSI 800) return of 0.80%, and an excess return of - 0.43% [13]. 3.2 Huabao Research Size Rotation ETF Strategy Index - **Strategy Principle**: It 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. The model outputs signals weekly to predict the strength of the index in the next week and determines positions accordingly to obtain excess returns relative to the market [4][14]. - **Performance**: As of 2026/2/13, the excess return since 2024 was 26.90%, the excess return in the past month was - 0.42%, and the excess return in the past week was - 0.43%. The index had a 0.37% return in the past week, - 1.27% in the past month, and 67.30% since 2024, compared to the CSI 800's 0.80%, - 0.84%, and 40.40% respectively [4][14][15]. - **Positions**: As of 2026/2/13, it held 50% of the CSI 500ETF (159922.SZ) and 50% of the CSI 1000ETF (512100.SH) [18]. 3.3 Huabao Research SmartBeta Enhanced ETF Strategy Index - **Strategy Principle**: It uses price - volume indicators to time self - built Barra factors and maps timing signals to ETFs based on the exposure of ETFs to 9 major Barra factors to obtain returns exceeding the market. The selected ETFs cover mainstream broad - based index ETFs and some style and strategy ETFs [4][18]. - **Performance**: As of 2026/2/13, the excess return since 2024 was 17.34%, the excess return in the past month was - 3.53%, and the excess return in the past week was 1.96%. The index had a 2.76% return in the past week, - 4.37% in the past month, and 57.74% since 2024, compared to the CSI 800's 0.80%, - 0.84%, and 40.40% respectively [4][18][19]. - **Positions**: As of 2026/2/13, it held 25.30% of the Southern GEM 200ETF (159270.SZ), 25.00% of the Penghua Science and Technology Innovation 100ETF (588220.SH), 24.87% of the Wanjia GEM Comprehensive ETF (159541.SZ), and 24.84% of the E Fund Growth ETF (159259.SZ) [21]. 3.4 Huabao Research Quantitative Fire - Wheel ETF Strategy Index - **Strategy Principle**: It starts from a multi - factor perspective, including the grasp of medium - and long - term fundamental dimensions, the tracking of short - term market trends, and the analysis of the behaviors of various market participants. It uses valuation and crowding signals to prompt industry risks and multi - dimensionally dig out potential sectors to obtain excess returns relative to the market [5][21]. - **Performance**: As of 2026/2/13, the excess return since 2024 was 49.12%, the excess return in the past month was 5.59%, and the excess return in the past week was 0.08%. The index had a 0.87% return in the past week, 4.75% in the past month, and 89.52% since 2024, compared to the CSI 800's 0.80%, - 0.84%, and 40.40% respectively [5][21][23]. - **Positions**: As of 2026/2/13, it held 20.35% of the Penghua Petroleum ETF (159697.SZ), 20.18% of the Chemical ETF (159870.SZ), 20.03% of the Steel ETF (515210.SH), 19.81% of the E Fund Securities and Insurance ETF (512070.SH), and 19.64% of the Electronic ETF (159997.SZ) [26]. 3.5 Huabao Research Quantitative Balance ETF Strategy Index - **Strategy Principle**: It uses a multi - factor system including economic fundamentals, liquidity, technical aspects, and investor behavior factors to build a quantitative timing system for trend analysis of the equity market. It establishes a prediction model for the market's large - and small - cap styles to adjust the equity market position distribution and comprehensively obtains excess returns relative to the market through timing and rotation [5][25]. - **Performance**: As of 2026/2/13, the excess return since 2024 was - 9.06%, the excess return in the past month was 1.58%, and the excess return in the past week was - 0.05%. The index had a 0.31% return in the past week, 0.07% in the past month, and 26.77% since 2024, compared to the CSI 300's 0.36%, - 1.51%, and 35.83% respectively [25][26]. - **Positions**: As of 2026/2/13, it held 9.06% of the 10 - Year Treasury Bond ETF (511260.SH), 6.68% of the 500ETF Enhanced (159610.SZ), 6.39% of the CSI 1000ETF (512100.SH), 33.00% of the Cathay CSI 300 Enhanced ETF (561300.SH), 22.51% of the Government Bond ETF (511520.SH), and 22.35% of the Haifutong Short - Term Financing ETF (511360.SH) [28]. 3.6 Huabao Research Hot - Spot Tracking ETF Strategy Index - **Strategy Principle**: It tracks and digs out 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 views, policy and regulatory changes, and historical deductions. It constructs an ETF portfolio that can capture market hot - spots in a timely manner to provide investors with references for short - term market trends and help them make more informed investment decisions [6][28]. - **Performance**: As of 2026/2/13, the excess return in the past month was 0.77%, and the excess return in the past week was 0.19%. The index had a 1.26% return in the past week and 0.46% in the past month, compared to the CSI All - Share Index's 1.07% and - 0.31% respectively [6][30]. - **Positions**: As of 2026/2/13, it held 42.01% of the Huitianfu Non - ferrous Metals ETF (159652.SZ), 22.80% of the Boshi Hong Kong Stock Dividend ETF (513690.SH), 18.43% of the E Fund Hong Kong Stock Connect Pharmaceutical ETF (513200.SH), and 16.76% of the Haifutong Short - Term Financing ETF (511360.SH) [31]. 3.7 Huabao Research Bond ETF Duration Strategy Index - **Strategy Principle**: It uses bond market liquidity indicators and price - volume indicators to screen effective timing factors and predicts bond yields through machine - learning methods. When the expected yield is lower than a certain threshold, it reduces the long - duration positions in the bond investment portfolio to improve the long - term return and drawdown control ability of the portfolio [6][31]. - **Performance**: As of 2026/2/13, the excess return in the past month was 0.16%, and the excess return in the past week was 0.06%. The bond ETF trading strategy had a 0.17% return in the past week, 0.61% in the past month, 9.94% since 2024, and 24.16% since its establishment, compared to the ChinaBond Aggregate Index's 0.10%, 0.45%, 3.37%, and 7.66% respectively [31][32]. - **Positions**: As of 2026/2/13, it held 50.02% of the 10 - Year Treasury Bond ETF (511260.SH), 25.00% of the Government Bond ETF (511520.SH), and 24.98% of the 5 - to 10 - Year Treasury Bond ETF (511020.SH) [34].

Investment Rating - The report does not explicitly provide an investment rating for the banking wealth management industry Core Insights - Regulatory actions in February 2026 target the "yield ranking" practices in the banking wealth management sector, indicating a shift away from short-term performance competition [3][11] - The emergence of "yield ranking" practices is attributed to investor expectations for "high yield, low volatility" and reliance on recent performance, which has led to a short-term competitive environment among wealth management firms [12] Summary by Sections Regulatory and Industry Dynamics - In February 2026, regulatory scrutiny on "yield ranking" practices has intensified, with penalties imposed on two wealth management companies for manipulating yields through "shelter products" [3][11] - The report highlights that these practices create a cycle of "temporary high yield attraction—rapid scale expansion—yield normalization," which can harm investor interests and undermine long-term investment capabilities [12] Innovations in the Industry - Zhongyou Wealth Management successfully invested in the "CITIC Securities-NIO Battery Phase 1 Holding-type Real Estate Green Asset-backed Special Plan," marking a significant innovation in the sector [13] - BOC Wealth Management and China Chengxin Index jointly launched two strategy indices aimed at enhancing investment strategies and achieving stable excess returns [15][16] Yield Performance - In the last trading week before the Spring Festival (February 9-15, 2026), cash management products recorded a 7-day annualized yield of 1.28%, remaining stable, while money market funds saw a slight increase to 1.19% [17][21] - The following week (February 16-22, 2026), cash management products' yield decreased to 1.26%, and money market funds fell to 1.14% [17][21] Net Value Tracking - The net value ratio of banking wealth management products was 0.41% in the last trading week before the Spring Festival, showing a decrease of 0.53 percentage points [26][27] - The report notes a correlation between net value ratios and credit spreads, indicating potential pressure on the net value ratio if credit spreads continue to widen [26]

Group 1 - The core viewpoint of the report emphasizes the effectiveness of grid trading strategies, which capitalize on price fluctuations rather than predicting market trends, making them suitable for volatile markets [4][12] - The report identifies key characteristics for suitable grid trading targets, including being exchange-traded, having stable long-term trends, low transaction costs, good liquidity, and high volatility, with equity ETFs being particularly appropriate [4][12] Group 2 - The report highlights three specific ETFs for grid trading strategies: 1. The Hong Kong Stock Connect Consumer 50 ETF (159268.SZ), which shows signs of consumer recovery and potential policy stimulus ahead of the Two Sessions, with transaction data indicating a 37.45% increase in transaction volume during the 2026 Spring Festival compared to 2025 [4][13] 2. The Hong Kong Medical ETF (159366.SZ), benefiting from improved liquidity and a surge in global innovation drug transactions, with over 1,500 billion HKD net purchases from southbound funds in early 2026 [5][16] 3. The Securities and Insurance ETF (512070.SH), which has seen a significant increase in bond issuance by brokerages, with a total of 426.04 billion CNY raised, reflecting a 243.97% year-on-year growth, supported by favorable refinancing policies [6][7][18] Group 3 - The report suggests that investors can enhance their grid trading strategies by diversifying their ETF selections, combining different types or investment ranges to mitigate risks and improve capital efficiency [21]

Investment Rating - The report does not explicitly provide an investment rating for the banking wealth management industry [2]. Core Insights - Regulatory actions in February 2026 target the "yield ranking" practices in the banking wealth management sector, indicating a shift away from short-term performance competition [3][11]. - The emergence of "yield ranking" practices is attributed to investor expectations for "high returns and low volatility," which are reinforced by the performance-based assessment mechanisms of wealth management companies [12]. - The report highlights the need for wealth management firms to transition towards research and service-oriented models, moving away from short-term yield chasing [12]. Summary by Sections Regulatory and Industry Dynamics - In February 2026, regulatory scrutiny on "yield ranking" practices led to penalties for two wealth management companies, emphasizing the need for compliance and ethical practices [3][11]. - The report discusses the detrimental effects of "yield ranking" on investor interests and the overall market, suggesting that such practices undermine long-term investment strategies and trust in the industry [12]. Innovations in the Industry - Zhongyou Wealth Management successfully invested in a green asset-backed securities project, marking a significant innovation in the industry [13]. - BOC Wealth Management and China Chengxin Index jointly launched two strategy indices aimed at enhancing investment strategies and risk management [15]. Yield Performance - For the week ending February 15, 2026, cash management products recorded an annualized yield of 1.28%, remaining stable, while money market funds saw a slight increase to 1.19% [17]. - The following week, cash management products yielded 1.26%, a decrease of 2 basis points, while money market funds dropped to 1.14%, down 5 basis points [17]. Net Asset Value Tracking - The report indicates that the net asset value (NAV) ratio for banking wealth management products was 0.41% for the week before the Spring Festival, reflecting a decrease of 0.53 percentage points [26][27].