1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the week from January 5 - 9, 2026, the ultra - long credit bonds showed a downward trend. Affected by multiple factors such as the stock - bond seesaw effect, the withdrawal of impulsive funds, and the supply pressure of long - term bonds, the yields of ultra - long credit bonds generally increased. The number of outstanding ultra - long credit bonds with yields above 2.8% increased to 174 [2][13]. - The supply of ultra - long industrial bonds dropped to a low point. This week, the total supply of new ultra - long credit bonds was 5.03 billion, with issuers highly concentrated in urban investment platforms. The interest rate of new ultra - long urban investment bonds rose to around 3%, but the subscription enthusiasm remained low [3][22]. - The ultra - long credit bond index continued to decline. The sharp rise of the stock market this week impacted the bond market pricing. Most medium - and long - term general credit bond full - price index prices fell, with the price of AA + credit bonds over 10 years dropping by 0.05%. However, the trading activity of ultra - long credit bonds rebounded, and the average trading yield of general credit bonds over 10 years rose above 2.65%. After the New Year, the number of trading transactions of ultra - long credit bonds rebounded to over 350 [4][29][31]. - From a more microscopic perspective, the spread between 7 - 10 - year active ultra - long credit bonds and government bonds of similar maturities was 58bp this week, with good coupon value. In late January, the opening of amortized - cost bond funds may bring local benefits to the ultra - long credit bond market [5][43]. 3. Summary According to the Directory 3.1 Stock Market Characteristics - Ultra - long credit bonds declined. Affected by multiple factors, the yields of ultra - long credit bonds generally increased, and the number of outstanding ultra - long credit bonds with yields above 2.8% increased to 174 compared with last week [2][13]. 3.2 Primary Issuance Situation - The supply of ultra - long industrial bonds dropped to a low point. This week, the total supply of new ultra - long credit bonds was 5.03 billion, with issuers highly concentrated in urban investment platforms [3][22]. - In terms of issuance interest rates, in the context of overall bond market fluctuations and fragile investor sentiment, the market demanded a higher risk premium for ultra - long credit bonds. The interest rate of new ultra - long urban investment bonds rose to around 3% this week. Despite the continuous increase in coupon rates, the subscription enthusiasm for ultra - long urban investment bonds remained low, and market concerns about the uncertainty of ultra - long urban investment bonds with maturities spanning the debt - resolution node intensified [3][22]. 3.3 Secondary Trading Performance - The ultra - long credit bond index continued to decline. The sharp rise of the stock market this week impacted the bond market pricing. Most medium - and long - term general credit bond full - price index prices fell, with the price of AA + credit bonds over 10 years dropping by 0.05% [4][29]. - The trading activity of ultra - long credit bonds rebounded. The supply pressure of government bonds and the warming of stock market sentiment continuously disturbed long - term interest rates. The secondary - market trading yield of ultra - long credit bonds continued to fluctuate. The average trading yield of general credit bonds over 10 years rose above 2.65%. After the New Year, the number of trading transactions of ultra - long credit bonds rebounded to over 350, partly driven by the market pattern of "credit is better than interest rates" this week. Due to the overcrowded trading of short - and medium - term credit products, some asset allocations shifted to the long - end [4][31]. - Corresponding to the secondary - market trading performance, the TKN ratio of general credit bonds over 10 years rebounded to 60%. The certain high coupon attracted funds to flow from more volatile long - term interest - rate bonds to credit bonds [4][36]. - In terms of investor structure, wealth - management funds have the motivation to extend the duration to increase returns, but their behavior is constrained by net - value fluctuations and tends to be cautious during the interest - rate increase period. Public funds with stronger trading attributes have recently shown a continuous attitude of reducing or holding off on long - duration credit bonds. Traditional allocation players such as insurance companies have承接, but the intensity has weakened, and they may reserve more positions for newly issued local government bonds [4][41].

- The report tracks the performance of active equity and enhanced index funds, highlighting the top-performing funds in the past week, including those with the highest returns[5][6][32] - The report provides detailed statistics on the net inflows and outflows of various types of ETFs, including cross-border, commodity, stock, and bond ETFs, as well as specific sector and theme ETFs[3][13][14] - The report includes a comprehensive list of newly issued and listed ETFs, covering various themes such as non-ferrous metals, food, and technology[4][26][30] - The report tracks the performance of enhanced strategy ETFs, noting that 11 out of 54 enhanced strategy ETFs outperformed their benchmarks in the past week, with detailed performance metrics for each[24][25] - The report provides a detailed analysis of the trading activity of ETFs in the secondary market, including the top traded ETFs and their respective trading volumes and financing net purchases[15][18][20]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Last week (January 5 - January 9), bond - type ETFs had a net capital outflow of 63.1 billion yuan. Credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs had net outflows of 56.1 billion yuan, 9.6 billion yuan, and a net inflow of 2.7 billion yuan respectively. Compared with the previous week, the weekly cumulative unit - net - value changes of credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs were - 0.01%, - 0.17%, and +3.86% respectively [2][4][13]. 3. Summaries According to Relevant Catalogs 3.1 Issuance Progress Tracking - There were no newly issued bond ETFs last week [17]. 3.2 Existing Product Tracking - As of January 9, 2026, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs were 142.2 billion yuan, 404.5 billion yuan, and 66.3 billion yuan respectively, with credit - bond ETFs accounting for 60.6%. The circulating market values of Haifutong CSI Short - term Finance ETF and Boshi Convertible - bond ETF ranked top two, at 61.829 billion yuan and 55.556 billion yuan respectively. Compared with the previous week, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs decreased by 10.5 billion yuan, 38.6 billion yuan, and increased by 5.3 billion yuan respectively. Products with significant scale reduction last week included Harvest CSI AAA Science and Technology Innovation Corporate Bond ETF, Science and Technology Innovation Bond ETF Yin Hua, and Fullgoal CSI AAA Science and Technology Innovation Corporate Bond ETF, with a month - on - month decrease of over 6 billion yuan each [19][20]. - Among credit - bond ETFs, the circulating market values of benchmark - market - making credit - bond ETFs and science - and - technology innovation bond ETFs were 119.9 billion yuan and 311 billion yuan respectively, decreasing by 7.1 billion yuan and 44 billion yuan compared with the previous week [23]. 3.3 ETF Performance Tracking - Based on the average trends of the cumulative unit net values of 16 interest - rate bond ETFs and 35 credit - bond ETFs, the cumulative unit net values of interest - rate bond ETFs and credit - bond ETFs closed at 1.18 and 1.03 respectively. In terms of cumulative returns, the return rate of benchmark - market - making credit - bond ETFs since their establishment has been stable at around 1.20%, while the return rate of science - and - technology innovation bond ETFs has marginally declined to 0.21% [26][28]. 3.4 Premium/Discount Rate Tracking - From a broad - category perspective, last week, the average premium/discount rates of credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs were - 0.25%, - 0.03%, and +0.03% respectively. The average trading price of credit - bond ETFs was lower than the fund's unit net value, indicating low allocation sentiment. Specifically, the weekly average premium/discount rates of benchmark - market - making credit - bond ETFs and science - and - technology innovation bond ETFs were - 0.39% and - 0.22% respectively [34]. 3.5 Turnover Rate Tracking - The weekly turnover rates of interest - rate bond ETFs, convertible - bond ETFs, and credit - bond ETFs were calculated by dividing the weekly trading volume of ETFs by the fund shares. Last week, the turnover rates showed the order of interest - rate bond ETFs > convertible - bond ETFs > credit - bond ETFs, and the weekly turnover rates of all three types of products increased marginally, reaching 141%, 112%, and 91% respectively. Specifically, products such as Huaxia Shanghai Stock Exchange Benchmark - Market - Making Treasury Bond ETF, Guotai CSI AAA Science and Technology Innovation Corporate Bond ETF, and Haifutong CSI Short - term Finance ETF had relatively high turnover rates [39].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 10.60 RMB, based on a projected PE of 13 times for 2026 [5]. Core Insights - The company is a leading player in the wool and cashmere yarn industry in China, with production advantages that support market share growth. Revenue for the first three quarters of 2025 reached 3.894 billion RMB, a year-on-year increase of 0.60%, while net profit attributable to shareholders was 377 million RMB, up 1.98% year-on-year [2][14]. - The company is expected to benefit from a "Davis Double Play" as wool prices rise, driven by supply constraints and low inventory levels. The price of Australian 19-micron fine wool was 1,096 cents per kilogram in September 2025, reflecting a 20% year-on-year increase [3][25]. - The company has implemented a wide-band strategy since 2021, which has helped maintain a good capacity utilization rate and is expected to enhance profit margins compared to previous cycles [4][20]. Company Overview - The company focuses on the research, production, and sales of fine wool yarn and wool tops, establishing an integrated spinning industry chain. In 2024, it achieved a revenue of 4.841 billion RMB, a year-on-year growth of 9.07%, and a net profit of 428 million RMB, up 5.96% year-on-year [14][15]. - The company has expanded its production capacity significantly, with a current capacity of approximately 194,000 spindles, including over 32,000 tons of cashmere yarn [2][23]. Production Capacity and Expansion Plans - The company has diversified its production capacity across regions, including Zhejiang, Ningxia, and Vietnam, with ongoing projects to enhance production capabilities. The first phase of a 50,000 spindle high-end fine wool project in Vietnam is expected to be fully operational by June 2025 [22][24]. - Future expansion plans include further capacity increases in Vietnam and Ningxia, aligning with the global trend towards high-end and functional products [22][24]. Profitability Outlook - The rising wool prices are anticipated to drive profit elasticity for the company, with stable growth in both costs and product prices expected to be around 50%-60% during the wool price upcycle [4][41]. - The company has maintained a high dividend payout ratio of over 50% in recent years, with a current dividend yield exceeding 4% [4][5]. Market Trends - The report highlights a significant supply shortage in the wool market, with Australian wool production declining to historical lows. This supply contraction is expected to support higher wool prices in the coming years [25][27]. - Demand for wool is projected to recover, particularly in the sportswear segment, which is expected to further bolster wool prices as inventory levels remain low [33][35].

- The report discusses a rotation model for micro-cap stocks, which uses the relative net value of micro-cap stocks to the "Mao Index" as a key indicator. If the relative net value is above its 243-day moving average, the model suggests investing in micro-cap stocks; otherwise, it recommends switching to the Mao Index. Additionally, the 20-day closing price slope of both indices is considered, and the model opts for the index with a positive slope when their directions diverge [19][25][27] - A timing indicator is constructed based on the 10-year government bond yield (threshold: 0.3) and the volatility crowding degree of micro-cap stocks (threshold: 0.55). If either indicator reaches its threshold, a closing signal is triggered [19][25] - The macro timing model recommends a 60% equity allocation for January, with signal strengths of 50% for economic growth and 60% for monetary liquidity. The model's year-to-date return is 14.59%, compared to 26.87% for the Wind All A Index [44][45][47] - Eight major stock selection factors are tracked across different stock pools (All A-shares, CSI 300, CSI 500, and CSI 1000). Growth (2.15%) and consensus expectation (0.54%) factors performed well in terms of IC mean, while technical, value, and volatility factors underperformed [49][50][52] - Convertible bond selection factors are constructed based on the relationship between the underlying stock and the convertible bond. The valuation factor uses the parity-to-floor premium rate. Last week, the IC mean of the consensus expectation and growth factors for underlying stocks was relatively high [57][59][60]

Macro Liquidity - The US dollar index continued to rise, and the degree of "inversion" in the China-US interest rate spread has narrowed. The nominal and real yields of 10Y US Treasuries both fell, indicating a rebound in inflation expectations [1][13][19]. Market Trading Activity, Volatility, and Liquidity - Market trading activity has continued to rise, with most industry trading heat above the 90th percentile. Specifically, sectors such as military, light industry, chemicals, media, and textiles are all above this threshold [2][25]. - The volatility of major indices has also increased, with the communication sector's volatility remaining above the 80th historical percentile [2][31]. - Market liquidity indicators have improved, although all sectors remain below the 60th historical percentile [2][35]. Institutional Research - The electronic, pharmaceutical, computer, machinery, and electric new energy sectors have seen high research activity, while sectors like oil and petrochemicals, agriculture, military, and automotive have also experienced rising research interest [3][41]. Analyst Forecasts - The net profit forecast for the entire A-share market in 2026 has been downgraded. However, the profit forecasts for sectors such as non-ferrous metals, chemicals, transportation, consumer services, and textiles have been upgraded. The net profit forecasts for the Shanghai 50 and CSI 300 indices have also been raised, while those for the ChiNext and CSI 500 indices have been lowered [3][4][4.1][4.2][4.3][4.4]. Northbound Trading Activity - Northbound trading activity has continued to rise, with significant net purchases of A-shares. The trading volume ratio in sectors like home appliances, media, and non-bank financials has increased, while it has decreased in communication, electronics, and banking [4][5][5.1][5.2]. Margin Financing Activity - Margin financing activity has reached its highest point since November 2025, with a net purchase of 857.75 billion yuan last week. Key sectors for net purchases include electronics, military, and non-ferrous metals, while net sales were seen in food and beverage, consumer services, and utilities [6][6.1][6.2][6.3]. Active Equity Funds and ETFs - The positions of actively managed equity funds have decreased, while ETFs have seen renewed net subscriptions, primarily driven by institutional ETFs. The main net purchases in ETFs were in sectors like non-ferrous metals, military, and chemicals, while electronics, electric new energy, and banking saw net sales [8][8.1][8.4][8.5].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][11]. Core Insights - The international version of the game "Heartopia" has achieved impressive initial download numbers, ranking first in the Apple Store free charts in 10 countries and within the top 20 in 30 countries as of January 11, 2026 [3]. - The game has accumulated over 1.6 million downloads on Google Play and approximately 1 million downloads on the Apple Store, with total downloads expected to exceed 3 million when including PC downloads [3]. - The game's strong user base and social interaction focus are crucial for its long-term monetization potential, supported by its early download success [3]. - The game's presence on social media platforms is growing, with significant increases in followers and engagement, which is expected to further expand its user base [3]. - The international version of "Heartopia" is projected to surpass the domestic version in active users and annual revenue, potentially becoming the company's top revenue-generating game [4]. Financial Projections - The company forecasts net profits of 1.704 billion, 2.119 billion, and 2.553 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding PE ratios of 20.16, 16.21, and 13.45 [4]. - Revenue is expected to grow from 3.389 billion RMB in 2023 to 8.843 billion RMB by 2027, reflecting a compound annual growth rate (CAGR) of approximately 14.20% [9]. - The net profit margin is projected to improve significantly, with net profit growth rates of 85.00%, 1077.29%, and 109.95% for the years 2024, 2025, and 2026 respectively [9].

Investment Rating - The report maintains a positive investment rating, recommending continued active investment in the insurance sector due to expected double-digit growth in new premiums driven by the bancassurance channel [5]. Core Insights - The insurance industry is projected to achieve double-digit growth in new premiums by 2026, primarily driven by the bancassurance channel, which benefits from the migration of deposits and the competitive advantages of large insurance companies [1][26]. - The bancassurance channel has seen a significant increase in market share, with the "old seven" insurance companies' new premium market share rising from 8.2% in 2019 to 23.8% in 2023, and expected to reach 26.0% in 2024 [2][22]. - A survey of 88 frontline bank wealth managers indicates that a substantial portion of household deposits will mature in 2026, with expectations that many will not be renewed, leading to a shift towards insurance products [3][35]. - The demographic of clients with maturing deposits is predominantly older, with a lower risk appetite, making insurance products a preferred option for reallocating funds [4][40]. - The report highlights that the bancassurance channel's growth will significantly enhance the overall profitability of large insurance companies by spreading fixed costs over a larger premium base [1][26]. Summary by Sections Bancassurance Channel - The bancassurance channel is identified as the main driver of value growth in the insurance industry for 2026, with a compound annual growth rate of 16.2% from 2019 to 2023 [12]. - The report notes that the shift in focus from individual insurance channels to bancassurance began in 2020, driven by the need to compensate for declining individual premium growth [2][12]. Bank Wealth Manager Survey Analysis - The survey indicates that a significant portion of maturing deposits will not be renewed, with expectations that 50% of clients will have deposits maturing in the 10%-30% and 30%-50% ranges [3][35]. - Wealth managers believe that the most acceptable financial products for clients will be bank wealth management and insurance, with insurance ranking second [4][40]. Projections for 2026 - The report estimates that the new premium growth rate for the bancassurance channel will exceed 25% in 2026, with expected incremental funds of 3,057 billion in January, 5,094 billion in Q1, and 11,150 billion for the entire year [5][62]. - The anticipated growth is attributed to the large volume of maturing deposits and the expected shift towards insurance products due to lower renewal rates for traditional bank deposits [60].

Group 1 - The investment rating for the automotive industry is positive, with expectations for steady demand growth driven by the implementation of the "Two New" policy in 2026 [1][12][14] - The core viewpoint emphasizes that the subsidy policy has shifted from fixed amounts to a percentage of the vehicle price, which is expected to benefit high-end vehicles while putting pressure on low-priced cars [1][14] - The report anticipates a marginal recovery in sales growth in Q1 2026, with an upward revision of the annual domestic sales growth forecast to -2% [1][14][16] Group 2 - The report highlights opportunities in themes such as smart technology and overseas expansion, with passenger car exports maintaining a growth rate of over 20% year-on-year [2][17] - Key companies to watch include BYD, Geely, and Li Auto in the automotive sector, and Horizon Robotics and Top Group in the smart technology and robotics sectors [2][22] - The report notes that the export volume of passenger cars is expected to maintain double-digit growth in 2026, driven by recovering demand in markets like Russia and the increasing penetration of fuel and new energy vehicles [2][17] Group 3 - The automotive market saw a wholesale sales volume of 1.457 million units in the last week of December 2025, with a year-on-year increase of 5%, while new energy vehicles accounted for 772,000 units, up 22% year-on-year [4][31] - In December 2025, the total wholesale sales volume was 2.759 million units, down 10% year-on-year, with new energy vehicles at 1.554 million units, showing a 3% increase [4][31] - The retail sales data for December 2025 indicated a total of 2.296 million units sold, down 13% year-on-year, while new energy vehicles saw a 7% increase in retail sales [4][31][46]

Group 1 - The core view of the report indicates that the credit style simulated portfolio has mostly rebounded, while the interest rate style portfolio continues to decline, with specific strategies showing varying performance [3][15][18] - The weekly return of the credit style portfolio has seen a slight increase in certain strategies, such as the broker debt and secondary debt duration strategies, achieving returns of 0.05% and 0.04% respectively [3][15] - The report highlights that the secondary capital bond heavy strategy has stabilized, with an average weekly return of 0.01%, outperforming the corresponding interest rate style portfolio by approximately 19 basis points [3][18] Group 2 - In terms of return sources, the long-duration portfolio's coupon rates have generally rebounded, indicating the emergence of left-side opportunities, with annualized returns for urban investment and industrial long-duration strategies reaching 2.45% and 2.48% respectively [4][29] - The report notes that the secondary debt duration strategy has shown superior cumulative excess returns over the past four weeks, with returns of 8.1 basis points, outperforming other strategies [5][34] - The short-end configuration value has also increased, with the urban investment short-end sinking strategy recovering nearly 13 basis points from its lowest point in 2025 [4][29]