- The report tracks multiple quantitative factors across different markets, including equity market factors, commodity market factors, options market factors, and convertible bond market factors[7] Quantitative Factors and Construction Equity Market Factors - **Factor Name**: Market Style Factors - **Construction Idea**: Tracks the dominance of large-cap vs. small-cap and value vs. growth styles in the market[11][13] - **Construction Process**: - Large-cap vs. small-cap style: Evaluates the relative performance of large-cap stocks compared to small-cap stocks - Value vs. growth style: Assesses the relative performance of value-oriented stocks compared to growth-oriented stocks - Volatility metrics: Tracks the fluctuation in style dominance over time[11][13] - **Evaluation**: The market style is currently skewed towards large-cap and value stocks, with reduced volatility in style dominance[13] - **Factor Name**: Market Structure Factors - **Construction Idea**: Measures the dispersion and rotation within industry indices and stock concentration in trading[11][13] - **Construction Process**: - Industry index excess return dispersion: Tracks the spread of returns across different industry indices - Industry rotation speed: Measures the rate at which industries gain or lose prominence - Stock concentration: Evaluates the trading concentration of the top 100 stocks and the top 5 industries[11][13] - **Evaluation**: Industry return dispersion is at a one-year low, while industry rotation speed has increased. Stock concentration remains stable at low levels[13] - **Factor Name**: Market Activity Factors - **Construction Idea**: Tracks overall market volatility and turnover rates[12][13] - **Construction Process**: - Index volatility: Measures the fluctuation in market indices - Index turnover rate: Tracks the frequency of stock trading within indices[12][13] - **Evaluation**: Market volatility is at a one-year low, while turnover rates have slightly increased[13] Commodity Market Factors - **Factor Name**: Commodity Futures Factors - **Construction Idea**: Tracks trends, volatility, and liquidity across commodity sectors[28][31] - **Construction Process**: - Trend strength: Measures the directional movement in sectors like black metals, precious metals, and agricultural products - Volatility: Tracks the fluctuation in commodity prices - Liquidity: Assesses the ease of trading in different commodity sectors - Basis momentum: Evaluates the change in the basis (difference between spot and futures prices) for sectors like precious metals and non-ferrous metals[28][31] - **Evaluation**: Precious metals and non-ferrous metals show declining basis momentum, while agricultural products exhibit stronger trends. Liquidity in the energy sector is at a one-year high[31] Options Market Factors - **Factor Name**: Implied Volatility and Skewness - **Construction Idea**: Tracks implied volatility levels and skewness in options markets[36] - **Construction Process**: - Implied volatility: Measures the market's expectation of future volatility for indices like SSE 50 and CSI 1000 - Skewness: Evaluates the asymmetry in the distribution of returns, particularly for put options[36] - **Evaluation**: CSI 1000 implied volatility remains at historically low levels, and skewness for put options has increased, indicating reduced concerns over small-cap risks[36] Convertible Bond Market Factors - **Factor Name**: Convertible Bond Valuation Factors - **Construction Idea**: Tracks valuation metrics and trading activity in the convertible bond market[38] - **Construction Process**: - Premium rate: Measures the difference between the bond price and its conversion value - Trading activity: Tracks the turnover and liquidity in the convertible bond market - Credit spread: Evaluates the difference in yields between convertible bonds and risk-free bonds[38] - **Evaluation**: Premium rates have risen to near-May peaks, while low-premium bonds have decreased in proportion. Credit spreads have slightly narrowed[38] Backtesting Results Equity Market Factors - **Market Style Factors**: - Large-cap dominance observed - Value style outperformed growth style - Style volatility reduced to a one-year low[13] - **Market Structure Factors**: - Industry return dispersion at a one-year low - Increased industry rotation speed - Stable stock concentration at low levels[13] - **Market Activity Factors**: - Volatility at a one-year low - Slight increase in turnover rates[13] Commodity Market Factors - **Commodity Futures Factors**: - Decline in trend strength for black and precious metals - Increase in agricultural product trends - Energy sector liquidity at a one-year high - Decline in basis momentum for precious and non-ferrous metals[31] Options Market Factors - **Implied Volatility and Skewness**: - CSI 1000 implied volatility at historical lows - Increased skewness for put options, indicating reduced small-cap risk concerns[36] Convertible Bond Market Factors - **Convertible Bond Valuation Factors**: - Premium rates near May peaks - Decrease in low-premium bonds - Slight narrowing of credit spreads[38]

New Stock Issuance - Jichuan Pharmaceutical (600566) has a tender offer period from June 18, 2025, to July 17, 2025[1] - ST Yazhen (603389) has a tender offer period from June 10, 2025, to July 9, 2025[1] Delisting Information - ST Zhongcheng (300208) and ST Jinguang (600190) will enter the delisting arrangement period starting June 30, 2025[1] - Hengli Tui (000622) has 14 trading days remaining until the last trading day[1] - Delisting Jiuyou (600462) has 13 trading days remaining until the last trading day[1] - Delisting Gongzhi (000584) has 11 trading days remaining until the last trading day[1] - Delisting Haiyue (600387) has 7 trading days remaining until the last trading day[1] - Delisting Renle (002336) has 6 trading days remaining until the last trading day[1] - Delisting Longyu (603003) and Delisting Pengbo (600804) each have 3 trading days remaining until the last trading day[1] - Delisting Longjin (002750) has 1 trading day remaining until the last trading day[1] Stock Volatility - Jiekang Equipment (300875) reported severe abnormal fluctuations[1] - ST Sailong (002898) also reported abnormal fluctuations[3]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific products [2]. Core Insights - The report highlights a trend of declining yields in bank wealth management products, with cash management products recording a 7-day annualized yield of 1.41% and money market funds at 1.30%, both remaining stable week-on-week [4][14]. - The report indicates a significant shift in China's wealth management industry towards a buyer advisory era, emphasizing diversified, globalized, and flexible asset allocation strategies as key paths for growth [11][10]. Regulatory and Industry Dynamics - The China State Administration of Foreign Exchange announced the release of a new batch of QDII investment quotas to meet the reasonable demand for overseas investments by domestic entities [3][10]. - The expansion of the middle-income group in China is driving the wealth management sector, which is now the second largest globally, with a shift towards diversified and professional asset allocation [3][10]. Peer Innovation Dynamics - Xinyin Wealth Management has made its first investment in a clean energy real estate ABS, indicating a new financing option that bridges traditional ABS and public REITs [12]. - Jiaoyun Wealth Management launched a product linked to the technology finance bond index, aimed at directing financial resources towards the technology innovation sector [12]. - Everbright Wealth Management participated as an A-class investor in a new stock offline issuance, marking a shift in the traditional investment structure [13]. Yield Performance - The report notes that yields for pure fixed income and fixed income+ products have generally declined, with the 10-year government bond yield remaining around 1.64% [4][18]. - Credit spreads have remained at historical lows since September 2024, indicating limited value in the current market [4][27]. Net Value Tracking - The bank wealth management product's net value ratio was recorded at 0.83%, down 6 basis points week-on-week, indicating a low level of risk [4][27]. - The report emphasizes the correlation between net value ratios and credit spreads, suggesting that ongoing monitoring of credit spread trends is essential [4][27].

Group 1 - The report indicates that the A-share market continues to show a slight decline under the influence of international geopolitical risks, with the Shanghai Composite Index reaching a low near 3350, but the overall pullback remains limited, suggesting some support [2] - The report highlights that the U.S. stock market exhibits similar characteristics, showing a slight decline due to multiple resistance factors, including geopolitical impacts and proximity to previous highs [2] - The report notes that as geopolitical tensions ease, there is potential for short-term upward momentum in both domestic and overseas equity markets, with previous recommendations for low-entry opportunities in the domestic equity market starting to yield results [2] Group 2 - The report emphasizes that the "Evergreen Low Volatility Fund Strategy" has shown strong stability, with a return of -1.042% this week, outperforming the benchmark index [6][13] - The "Stock Enhancement Fund Strategy" recorded a return of -1.235%, indicating that the current market remains volatile, and the strategy's performance may improve as the market environment stabilizes [7][13] - The "Cash Growth Fund Strategy" achieved a return of 0.031%, outperforming the benchmark, and has accumulated excess returns since its inception [7][13] Group 3 - The report discusses the "Overseas Equity Allocation Fund Strategy," which recorded a return of -1.477% this week, reflecting the impact of previous concerns in the U.S. stock market, but notes potential for recovery as geopolitical tensions ease [8][13] - The report suggests that the current market environment presents opportunities for overseas investments, particularly in the context of easing tariff risks and improving economic data [5][8] - The report indicates that the overseas equity allocation strategy has accumulated significant excess returns since its inception, benefiting from the global technology sector's growth [21]

Group 1 - The core viewpoint of the report emphasizes the effectiveness of grid trading strategies in volatile markets, allowing investors to profit from price fluctuations without predicting market trends [3][13] - The report identifies suitable characteristics for grid trading targets, including low trading costs, good liquidity, and significant volatility, suggesting that equity ETFs are appropriate for this strategy [3][13] Group 2 - The report highlights specific ETFs for grid trading, starting with the ChiNext Artificial Intelligence ETF (159363.SZ), which is expected to benefit from government policies promoting AI technology [5][14] - The report discusses the China Concept Internet ETF (159605.SZ), which tracks 30 leading Chinese internet companies and is positioned to capitalize on the shift from "anti-monopoly" to "anti-involution" regulatory policies [6][18] - The report mentions the Hang Seng Technology ETF (513010.SH), which covers 30 leading technology companies in China and is expected to benefit from favorable policies for tech companies in Hong Kong [7][20] - The report also addresses the Hong Kong Consumer ETF (159735.SZ), which is anticipated to gain from the government's focus on boosting consumer spending and the recovery of traditional and new consumption [8][22]

New Stock Offerings - Jichuan Pharmaceutical (600566) has a tender offer period from June 18, 2025, to July 17, 2025[1] - ST Yazhen (603389) has a tender offer period from June 10, 2025, to July 9, 2025[1] Delisting Information - ST Zhongcheng (300208) and ST Jinguang (600190) will enter the delisting arrangement period starting June 30, 2025[1] - ST Hengli (000622) will enter the delisting arrangement period starting June 25, 2025[1] Trading Days Remaining - Delisting Jiuyou (600462) has 14 trading days remaining until the last trading day[1] - Delisting Gongzhi (000584) has 12 trading days remaining until the last trading day[1] - Delisting Haiyue (600387) has 8 trading days remaining until the last trading day[1] - Delisting Renle (002336) has 7 trading days remaining until the last trading day[1] - Delisting Longyu (603003) and Delisting Pengbo (600804) each have 4 trading days remaining until the last trading day[1] - Delisting Longjin (002750) has 2 trading days remaining until the last trading day[1] Abnormal Fluctuations - Jiekang Equipment (300875) reported severe abnormal fluctuations[1] - ST Sailong (002898) is noted for abnormal fluctuations[3]

New Stock Offerings - Jichuan Pharmaceutical (600566) has a tender offer period from June 18, 2025, to July 17, 2025[1] - ST Yazhen (603389) has a tender offer period from June 10, 2025, to July 9, 2025[1] Delisting and Trading Reminders - ST Zhongcheng (300208) and ST Jinguang (600190) will enter the delisting arrangement period starting June 30, 2025[1] - ST Hengli (000622) will enter the delisting arrangement period starting June 25, 2025[1] - ST Jiuyou (600462) will enter the delisting arrangement period starting June 24, 2025[1] Trading Days Remaining - Gongzhi Tui (000584) has 13 trading days remaining until the last trading day[1] - Tuihai Haoyue (600387) has 9 trading days remaining until the last trading day[1] - Renle Tui (002336) has 8 trading days remaining until the last trading day[1] - Tui Longyu (603003) and Tui Pengbo (600804) each have 5 trading days remaining until the last trading day[1] - Longjin Tui (002750) has 3 trading days remaining until the last trading day[1]

New Stock Issuance - New stock issuance includes Xintong Electronics (Code: 001388) at an issue price of 16.42[1] - Xinhenghui (Code: 301678) issued at 12.80[1] - Huazhi Jie (Code: 603400) issued at 19.88[1] Rights Offerings - Jichuan Pharmaceutical (Code: 600566) has a tender offer period from June 18 to July 17, 2025[1] - *ST Yazhen (Code: 603389) has a tender offer period from June 10 to July 9, 2025[1] - *ST Hengli (Code: 000622) will enter the delisting arrangement period starting June 25, 2025[1] Delisting Notices - *ST Jiuyou (Code: 600462) will enter the delisting arrangement period starting June 24, 2025[1] - Gongzhi Tui (Code: 000584) has 14 trading days remaining until the last trading day[1] - Tui Shi Haiyue (Code: 600387) has 10 trading days remaining until the last trading day[1] Abnormal Fluctuations - Tongyuan Petroleum (Code: 300164) reported severe abnormal fluctuations[1] - New stock listings and rights offerings are expected to impact market dynamics significantly[1]

New Stock Offerings - Jichuan Pharmaceutical (600566) has a tender offer period from June 18, 2025, to July 17, 2025[1] - ST Yazhen (603389) has a tender offer period from June 10, 2025, to July 9, 2025[1] Delisting and Trading Reminders - ST Gongzhi (000584) will enter the delisting arrangement period starting June 20, 2025[1] - ST Hengli (000622) will enter the delisting arrangement period starting June 25, 2025[1] - ST Jiuyou (600462) will enter the delisting arrangement period starting June 24, 2025[1] - Haiyue (600387) has 11 trading days remaining until the last trading day[1] - Renle (002336) has 10 trading days remaining until the last trading day[1] - Longyu (603003) has 7 trading days remaining until the last trading day[1] - Pengbo (600804) has 7 trading days remaining until the last trading day[1] - Longjin (002750) has 5 trading days remaining until the last trading day[1] Abnormal Fluctuations - Lianhua Technology (002250) reported severe abnormal fluctuations[1] - ST Sairong (002898) is under observation for abnormal fluctuations[2]

Group 1 - The core viewpoint of the report emphasizes the effectiveness of grid trading strategies in volatile markets, allowing investors to profit from price fluctuations without predicting market trends [3][11] - The report identifies suitable characteristics for grid trading targets, including low trading costs, good liquidity, and significant volatility, suggesting that equity ETFs are particularly appropriate for this strategy [3][11] Group 2 - The report highlights specific ETFs for grid trading, starting with the Medical ETF (512170.SH), which benefits from increasing demand due to global aging and supportive regulatory changes aimed at accelerating drug approval processes [3][12] - The report discusses the Zhongzheng 1000 ETF (512100.SH), which diversifies risks associated with individual stocks and sectors, featuring small-cap growth companies that align with national policies on new productivity [4][13] - The report mentions the China Concept Internet ETF (159605.SZ), which focuses on leading Chinese internet companies and is positioned to benefit from the commercialization of generative AI across various sectors [4][17] - The report also covers the Hang Seng Technology ETF (513010.SH), which includes major technology firms and is expected to benefit from favorable government policies promoting technological innovation [4][19]