Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core View The report presents several ETF strategy indices constructed by Huabao Securities, tracking their performance and positions on a weekly basis. These indices aim to achieve excess returns relative to the market through various quantitative models and strategies [4][5][6]. 3. Summary by Directory 1. ETF Strategy Index Tracking - **Overall Performance**: The table shows the performance of different ETF strategy indices last week, including index returns, benchmark returns, and excess returns. For example, the Huabao Research Small - Large Cap Rotation ETF Strategy Index had a last - week index return of 0.83%, a benchmark (CSI 800) return of 0.59%, and an excess return of 0.24% [13]. 1.1. Huabao Research Small - Large Cap Rotation ETF Strategy Index - **Strategy**: 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, determining positions weekly. - **Performance**: As of 2025/11/7, the excess return since 2024 was 20.20%, the excess return in the past month was 0.81%, and the excess return in the past week was 0.24%. The current position is 100% in the SSE 50 ETF (510300.SH) [14][16][18]. 1.2. Huabao Research SmartBeta Enhanced ETF Strategy Index - **Strategy**: It uses price - volume indicators to time self - built Barra factors and maps timing signals to ETFs based on their exposure to 9 major Barra factors. - **Performance**: As of 2025/11/7, the excess return since 2024 was 16.62%, the excess return in the past month was - 1.12%, and the excess return in the past week was 1.97%. The positions include 25.07% in the Dividend ETF (510880.SH), 25.04% in the SSE 300 Dividend ETF (512530.SH), 24.98% in the Dividend Low - Volatility ETF (512890.SH), and 24.91% in the CSI Dividend ETF (515080.SH) [18][19][22]. 1.3. Huabao Research Quantitative Windmill ETF Strategy Index - **Strategy**: It starts from a multi - factor perspective, including mid - to - long - term fundamental analysis, short - term market trend tracking, and analysis of market participants' behavior. It uses valuation and congestion signals to prompt industry risks and digs out potential sectors. - **Performance**: As of 2025/11/7, the excess return since 2024 was 35.34%, the excess return in the past month was 3.52%, and the excess return in the past week was 2.16%. The positions include 20.19% in the New Energy ETF (516160.SH), 20.11% in the Bank ETF (512800.SH), 20.03% in the Oil and Gas ETF (159697.SZ), 20.01% in the Power ETF (159611.SZ), and 19.67% in the Securities and Insurance ETF (512070.SH) [22][25][26]. 1.4. Huabao Research Quantitative Balance ETF Strategy Index - **Strategy**: It uses a multi - factor system including economic fundamentals, liquidity, technical aspects, and investor behavior to construct a quantitative timing system for equity market trend analysis. It also builds a prediction model for market small - large cap styles to adjust equity market positions. - **Performance**: As of 2025/11/7, the excess return since 2024 was - 12.21%, the excess return in the past month was - 0.88%, and the excess return in the past week was - 0.62%. The positions include 9.23% in the 10 - Year Treasury Bond ETF (511260.SH), 6.16% in the CSI 500 Enhanced ETF (159610.SZ), 5.95% in the CSI 1000 ETF (512100.SH), 32.82% in the SSE 300 Enhanced ETF (561300.SH), 22.97% in the Policy Financial Bond ETF (511520.SH), and 22.86% in the Short - Term Financing ETF (511360.SH) [26][27][29]. 1.5. Huabao Research Hot - Spot Tracking ETF Strategy Index - **Strategy**: It tracks and digs out hot - spot index target products based on strategies such as market sentiment analysis, industry event tracking, investor sentiment, professional opinions, policy changes, and historical analysis, constructing an ETF portfolio to capture market hot - spots. - **Performance**: As of 2025/11/7, the excess return in the past month was - 1.11%, and the excess return in the past week was - 0.37%. The positions include 36.05% in the Non - Ferrous Metals 50 ETF (159652.SZ), 24.27% in the Hong Kong Stock Dividend Bosera ETF (513690.SH), 20.99% in the Hong Kong Stock Connect Pharmaceutical ETF (513200.SH), and 18.70% in the Short - Term Financing ETF (511360.SH) [29][32][33]. 1.6. Huabao Research Bond ETF Duration Strategy Index - **Strategy**: It uses bond market liquidity and price - volume indicators to select effective timing factors and predicts bond yields through machine learning. When the expected yield is below a certain threshold, it reduces the long - duration positions in the bond portfolio. - **Performance**: As of 2025/11/7, the excess return in the past month was - 0.07%, and the excess return in the past week was 0.05%. The positions include 49.89% in the Short - Term Financing ETF (511360.SH), 25.07% in the 10 - Year Treasury Bond ETF (511260.SH), 12.53% in the Policy Financial Bond ETF (511520.SH), and 12.52% in the 5 - Year Treasury Bond ETF (511020.SH) [33][34][36].

Group 1 - The report indicates that the stock market is expected to continue fluctuating around the 4000-point mark of the Shanghai Composite Index, with a notable acceleration in style and sector rotation [2][12] - It is suggested to maintain a cautious approach, focusing on opportunities in technology, new energy, and electricity sectors during the fluctuations and rotations [2][12] - The bond market is anticipated to remain in a range-bound oscillation, with insufficient momentum for sustained buying and limited downward space for interest rates [1][12] Group 2 - Recent market events include the suspension of a 24% tariff on U.S. imports, effective from November 10, 2025, which may influence trade dynamics [9] - The report highlights that the A-share market has shown strong sentiment, with various sectors such as banking, coal, electricity, and chemicals performing well [10] - The report notes that the average daily trading volume in the market has decreased to 20,124 billion yuan, reflecting a rise in cautious sentiment among investors [19]

New Stock Issuance - 恒坤新材 (787727) issued at a price of 14.99[1] - 南网数字 (301638) issued at a price of 5.69[1] - 德力佳 (603092) issued at a price of 46.68[1] - 中诚咨询 (920003) issued at a price of 14.27[1] Market Alerts - 合富中国 (603122) announced on November 7, 2025[1] - *ST元成 (603388) reported severe abnormal fluctuations on November 7, 2025[1] - 海峡创新 (300300) announced on November 4, 2025[1] - 江波龙 (301308) announced on October 30, 2025[1] - 兰石重装 (603169) announced on November 5, 2025[1] - 振华股份 (603067) announced on November 7, 2025[1] - ST起步 (603557) announced on November 7, 2025[1] - *ST宝鹰 (002047) announced on November 7, 2025[1] - 保变电气 (600550) announced on November 7, 2025[1] - 统一股份 (600506) announced on November 7, 2025[1]

New Stock Listings - Daming Electronics (603376) listed at an issue price of 12.55 on November 6, 2025[1] - Haixia Innovation (300300) and Jiangbolong (301308) reported severe abnormal fluctuations on November 4, 2025[1] - Several companies including Xiangnan Xinchuan (300475) and Lansi Heavy Industry (603169) also reported abnormal fluctuations in late October[1] Abnormal Fluctuations - ST Bosen (002569) reported a fluctuation of 5939 on November 5, 2025[2] - Hailu Heavy Industry (002255) experienced a fluctuation of 5812 on November 5, 2025[2] - ST Aowei (002231) had a fluctuation of 5668 on November 5, 2025[2] - Rongke Technology (300290) reported a fluctuation of 4706 on November 3, 2025[2] - ST Xiongmao (600599) had a fluctuation of 5001 on November 4, 2025[2]

Investment Rating - The report indicates a positive outlook for the banking wealth management industry, particularly in the context of the nationwide promotion of pension wealth management products [3]. Core Insights - The expansion of pension wealth management trials to a national level marks a significant shift, enhancing the third pillar of the pension system in China [10][11]. - The introduction of a new direct registration system for wealth management products is expected to improve data governance and operational efficiency across the industry [12][13]. - Recent trends show an increase in annualized returns for cash management products, with a recorded rate of 1.29%, reflecting a slight increase from the previous week [14][18]. Summary by Sections Regulatory and Industry Dynamics - The National Financial Regulatory Administration issued a notification promoting the sustainable development of pension wealth management, expanding trials nationwide and increasing the fundraising limits for wealth management companies [10][11]. - The new system implemented by ICBC Wealth Management and Suzhou Wealth Management enhances data reporting and regulatory oversight, improving the management of sales personnel and investor protection [12][13]. Yield Performance - Cash management products saw a near 7-day annualized yield of 1.29%, up 1 basis point from the previous week, while money market funds decreased to 1.16% [14][18]. - The overall bond market remains favorable, although market sentiment is expected to remain subdued due to ongoing uncertainties [16][17]. Net Value Tracking - The net value ratio of banking wealth management products decreased to 0.78%, down 0.32 percentage points, indicating a potential pressure on the net value if credit spreads continue to widen [23][25].

Macro Strategy Overview - The report indicates that the current bull market is experiencing a pause and is undergoing a phase of consolidation, with expectations of continued volatility in the near term [1][6]. - The U.S. Federal Reserve is likely to continue its interest rate cuts in December, with a high probability of a 25 basis point reduction, as inflation remains manageable and the job market shows signs of weakness [6][29]. - The economic performance in the first three quarters of 2025 has exceeded expectations, with GDP growth at 5.2%, but there are increasing pressures on domestic demand [6][43]. Overseas Economic Environment - Following the U.S.-China trade negotiations, tariffs on Chinese goods have been reduced by 10%, although ongoing tensions between the two countries are expected to persist [6][30]. - The overall impact of tariffs on U.S. inflation has been limited, with inflation expected to remain stable due to insufficient demand [6][20]. Domestic Economic Environment - Domestic consumption and investment are showing signs of decline, while external demand remains relatively strong, indicating a divergence in economic performance [6][43]. - The report highlights that the policy environment is expected to remain stable, with a focus on infrastructure investment to support economic growth [6][55]. A-Share Market Strategy - The A-share market is currently in a phase of consolidation, with a shift towards a more balanced investment style as external disturbances ease [7][12]. - The report suggests a cautious approach to investment in the A-share market, with a focus on sectors that are expected to benefit from technological innovation in the medium to long term [7][8]. Asset Allocation Insights - The report presents a neutral outlook for major asset classes, including A-shares, Hong Kong stocks, and U.S. stocks, indicating a shift from a relatively optimistic stance in previous reports [8]. - The recommendation is to adopt a balanced asset allocation strategy while remaining vigilant for opportunities in technology and other growth sectors [8][7].

Group 1 - The report outlines a grid trading strategy, which is essentially a high buy low sell trading approach that capitalizes on price fluctuations without predicting market trends, making it suitable for volatile markets [4][12] - Characteristics of suitable grid trading targets include selecting on-market assets, stable long-term trends, low transaction costs, good liquidity, and high volatility, with equity ETFs being identified as appropriate for this strategy [4][12] Group 2 - The report highlights key ETFs for grid trading strategies, including the Military Industry Leader ETF (512710.SH), which is expected to benefit from a new round of military procurement driven by the "14th Five-Year Plan" and the upcoming "15th Five-Year Plan," with a projected defense budget of CNY 1.81 trillion for 2025, a 7.2% increase year-on-year [4][13] - The Hang Seng New Economy ETF (513320.SH) is noted for its potential to capture the benefits of China's industrial upgrade and technological development, tracking the Hang Seng New Economy Index, which includes leading companies in internet, semiconductors, innovative pharmaceuticals, and new energy sectors [5][16] - The Saudi ETF (159329.SZ) is recognized as a tool to capture long-term economic transformation opportunities under Saudi Arabia's "Vision 2030," which aims to diversify the economy away from oil dependency, with over 40% of its holdings in the financial sector and significant allocations in consumption and technology [6][18]

Regulatory Framework - The China Securities Regulatory Commission (CSRC) released the "Guidelines for Performance Comparison Benchmarks of Publicly Raised Securities Investment Funds" on October 31, 2025, marking a significant regulatory update[5] - The guidelines aim to enhance the representativeness and binding force of performance benchmarks, ensuring clear risk-return characteristics of fund products[25] Key Features of the Guidelines - The guidelines emphasize the establishment of a comprehensive internal control mechanism for fund managers regarding benchmark selection, modification, and disclosure[6] - Fund managers are required to embed benchmark management throughout the product lifecycle, ensuring effective internal constraints[8] - The guidelines mandate that benchmarks must accurately reflect the product's investment style and strategy, preventing arbitrary changes due to market fluctuations[9] Market Impact - Traditional broad-based indices remain the primary benchmark choice for newly launched products, with indices like the Hang Seng Index and CSI 800 being the most popular[15] - The guidelines have led to a significant increase in the number of funds adjusting their benchmarks to better align with their investment strategies, with 16 funds adjusting their asset composition ratios since the guidelines were issued[21] Investor Protection - The new regulations enhance transparency by requiring detailed disclosures comparing fund portfolios with benchmarks, allowing investors to assess fund performance more effectively[26] - The guidelines aim to shift investor focus from absolute returns to a more rational evaluation of relative performance, fostering a more informed investment culture[26]

New Stock Issuance - Dapeng Industrial (920091) issued shares at a price of 9.00 on November 5, 2025[1] - Fengbei Biological (603334) issued shares at a price of 24.49 on November 5, 2025[1] Market Alerts - Haixia Innovation (300300) announced an equity date on November 4, 2025[1] - Pingtan Development (000592) announced an equity date on November 4, 2025[1] - ST Zhongdi (000609) reported severe abnormal fluctuations on November 3, 2025[1] Trading Updates - Jiangbolong (301308) announced trading updates on October 30, 2025[1] - Xiangnan Xinchuan (300475) announced trading updates on October 24, 2025[1] - Lansi Heavy Industry (603169) announced trading updates on November 5, 2025[1] Additional Announcements - Standard Shares (600302) announced updates on November 5, 2025[1] - Dalian Shengya (600593) announced updates on November 5, 2025[1] - Guancheng New Materials (600067) announced updates on November 5, 2025[1]

- The report covers the period from October 27, 2025, to October 31, 2025[2][11] - The market sentiment remains high, with a potential shift towards small-cap stocks due to valuation pressures and performance verification issues in large-cap growth stocks[3][11] - Market style trends indicate a preference for small-cap and value stocks, with decreased volatility in both large-cap vs. small-cap and value vs. growth styles[12][14] - Market structure shows an increase in industry excess return dispersion, a decrease in industry rotation speed, and a decline in the proportion of rising constituent stocks[12][14] - Trading concentration has decreased, with the top 100 stocks' trading volume share declining and the top 5 industries' trading volume share remaining stable[12][14] - Market activity has seen an increase in volatility and mixed performance in turnover rates[13][14] - Commodity market trends show an increase in trend strength for non-ferrous metals and energy chemicals, a decrease in basis momentum across all sectors, and an increase in volatility except for agricultural products[26][33] - Option market analysis indicates stable implied volatility levels for SSE 50 and CSI 1000, with an increase in put option skewness and a decrease in call option skewness for CSI 1000, suggesting heightened risk hedging by market participants[37][38] - Convertible bond market shows a slight recovery, with stable and rising premium rates for bonds convertible at par and a rebound in the proportion of low premium convertible bonds[39][41]