1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - The overall production is more robust than in previous years before the Spring Festival, but there are differences in various production indicators; the improvement trend of the new - house sales volume in 30 cities has weakened; the decline of pig prices has widened; and oil prices have risen [2][3][4]. 3. Summary by Directory 3.1 Economic Growth: Production is More Robust than in Previous Years before the Spring Festival 3.1.1 Production - **Power plant daily consumption shows seasonal decline**: On February 10, the average daily consumption of 6 major power - generating groups was 792,000 tons, a 2.8% decrease from February 3; on February 8, the daily consumption of power plants in eight southern provinces was 2.03 million tons, an 8.6% decrease from January 30 [4][11]. - **Blast furnace operating rate rises before the festival**: On February 6, the national blast furnace operating rate was 79.6%, a 0.5 - percentage - point increase from January 30; the capacity utilization rate was 85.7%, a 0.3 - percentage - point increase. The blast furnace operating rate of Tangshan steel mills was 92.3%, a 2.5 - percentage - point increase [4][16]. - **Tire operating rate is more robust than in previous Spring Festivals**: On February 5, the operating rate of all - steel truck tires was 60.7%, a 1.7 - percentage - point decrease from January 29; the operating rate of semi - steel car tires was 72.8%, a 2.1 - percentage - point decrease. The operating rate of looms in the Jiangsu - Zhejiang region shows a seasonal decline [4][18]. 3.1.2 Demand - **The improvement trend of new - house sales volume in 30 cities weakens**: From February 1 - 10, the average daily sales area of commercial housing in 30 large - and medium - sized cities was 185,000 square meters, a 27.3% increase from January, a 116.3% increase from February last year, and a 3.2% increase from February 2024 [4][23]. - **The retail growth of the auto market strengthens**: In February, retail sales increased by 54% year - on - year, and wholesale sales increased by 46% year - on - year [4][25]. - **Most steel prices decline**: On February 10, compared with February 3, the prices of rebar, wire rod, hot - rolled coil, and cold - rolled coil were flat, down 1.3%, down 0.6%, and down 0.1% respectively [4][31]. - **The decline of cement prices slows down before the festival**: On February 10, the national cement price index decreased by 0.3% compared with February 3 [4][32]. - **Glass prices fluctuate within a narrow range**: On February 10, the active futures contract price of glass was 1,079 yuan/ton, a 0.6% increase from February 3 [4][38]. - **The decline of the container shipping freight rate index slows down**: On February 6, the CCFI index decreased by 4.5% compared with January 30, and the SCFI index decreased by 3.8% [4][42]. 3.2 Inflation: The Decline of Pig Prices Widens 3.2.1 CPI - **The decline of pig prices widens**: On February 10, the average wholesale price of pork was 18.3 yuan/kg, a 1.6% decrease from February 3 [4][47]. - **The agricultural product price index declines moderately**: On February 10, the agricultural product wholesale price index decreased by 0.3% compared with February 3 [4][53]. 3.2.2 PPI - **Oil prices rise**: On February 10, the spot prices of Brent and WTI crude oil were $72.4 and $64.0 per barrel respectively, a 3.6% and 1.2% increase from February 3 [4][55]. - **Copper and aluminum prices decline**: On February 10, the prices of LME 3 - month copper and aluminum decreased by 2.0% and 0.7% respectively compared with February 3 [4][59]. - **The domestic commodity index turns to decline month - on - month**: On February 10, the Nanhua Industrial Products Index increased by 0.01% compared with February 3, and the CRB index decreased by 0.4% [4][59].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the bond market strengthened overall driven by risk - aversion sentiment. The yield of ultra - long credit bonds declined slightly, and the number of ultra - long credit bonds with a yield of 2.4% - 2.5% increased to 388. The new issuance of ultra - long credit bonds saw increased subscription sentiment, but the supply volume shrank to a relatively low level in the past two years. Ultra - long bonds led the bond market rally, but the trading sentiment of ultra - long credit bonds was weak. In the short term, the pre - holiday asset shortage logic continues, and the continuous opening of amortized cost method bond funds will provide incremental funds. However, after the holiday, the extremely low pricing of ultra - long bonds is relatively fragile, and factors such as the recovery of the stock market, the increase in government bond supply, and unexpected policies may cause price fluctuations of ultra - long credit bonds [2][3][4][5] 3. Summary by Directory 3.1 Stock Market Characteristics - This week (from February 2, 2026, to February 6, 2026), the bond market strengthened overall driven by risk - aversion sentiment, and the yield of ultra - long credit bonds showed a slight downward trend. Compared with last week, the number of outstanding ultra - long credit bonds with a yield of 2.4% - 2.5% increased to 388 [2][13] 3.2 Primary Issuance Situation - The subscription sentiment for new ultra - long credit bonds increased this week. The total supply of new ultra - long credit bonds was 3.1 billion, and the supply volume shrank to a relatively low level in the past two years. The interest rate of new ultra - long urban investment bonds continued to decline to 2.58%, and the interest rate of new ultra - long industrial bonds remained around 2.5%. Driven by the correction of the equity market and the central bank's clear intention to protect liquidity before the Spring Festival, institutional participation in subscribing for new ultra - long credit bonds has strengthened [3][22] 3.3 Secondary Transaction Performance - Ultra - long bonds led the bond market rally. This week, the bond market sentiment continued to recover. Treasury bonds with a term of over 10 years performed well, with the full - price index rising nearly 0.5% weekly. The prices of ultra - long credit bonds also increased marginally. The full - price indices of AA+ credit bonds with terms of 7 - 10 years and over 10 years increased by 0.04% and 0.17% respectively compared with the previous week, outperforming medium - short - term credit bonds and secondary capital bonds [4][30] - The trading sentiment of ultra - long credit bonds was weak. Although long - term bonds led the rally this week, in terms of liquidity, the number of transactions of general credit bonds with a term of over 7 years slightly increased to 275, and the activity did not improve significantly. Investors were concerned about chasing up ultra - long credit bonds due to insufficient spread protection (the spread between 7 - 10 - year industrial bonds and 20 - 30 - year treasury bonds was only 13bp) and potential supply pressure [4][33] - This week, ultra - long credit bonds were mostly traded at a lower valuation. However, in terms of buying willingness, the proportion of TKN for varieties over 10 years decreased significantly, indicating limited enthusiasm for chasing long - term bonds in the market [4][39] - In terms of investor structure, the allocation sentiment of trading desks such as public funds towards ultra - long credit bonds became more cautious, and the net buying volume decreased month - on - month. The buying power of insurance and other funds for long - duration assets also weakened temporarily. Overall, ultra - long credit bonds lacked continuous and sufficient buying support [4][44] - From a more microscopic perspective, due to the faster decline in long - term treasury bond interest rates, the spread between active ultra - long credit bonds and treasury bonds of similar terms widened passively this week. Looking ahead, the pre - holiday asset shortage logic continues, and the continuous opening of amortized cost method bond funds will provide incremental funds for corresponding term varieties. However, looking after the holiday, the extremely low pricing of current ultra - long bonds is relatively fragile, and factors such as the recovery of the stock market, the increase in government bond supply, and unexpected policies may cause price fluctuations of ultra - long credit bonds [5][46]

- The report highlights the performance of various market and industry indices over the past month, with notable increases in indices such as the CSI 500, CSI 1000, and the SSE 50, among others[1][10] - The industry indices for sectors like non-ferrous metals, media, petrochemicals, building materials, and electronics showed significant gains, with the non-ferrous metals sector leading with a 23.02% increase[1][10] - The report discusses the construction and performance of several industry rotation strategies, including the "Outperformance Enhanced Industry Rotation Strategy," the "Prosperity Valuation Industry Rotation Strategy," and the "Research Activity Industry Selection Strategy"[13][14] - The "Outperformance Enhanced Industry Rotation Strategy" integrates fundamental, valuation, and capital factors, including earnings, quality, analyst expectations, and outperformance factors[13] - The "Prosperity Valuation Industry Rotation Strategy" is based on valuation momentum, earnings, and quality factors[14] - The "Research Activity Industry Selection Strategy" uses institutional research data to gauge industry interest, considering research activity and coverage breadth[14] - The report provides detailed performance metrics for various factors, including IC values and long-short returns for factors like earnings, valuation momentum, analyst expectations, and research activity[17][18] - The "Outperformance Enhanced Factor" had an average IC of 8.26% since 2011, with a risk-adjusted IC of 0.297[22][23] - The "Research Activity Factor" had an average IC of 9.09% since 2017, with a risk-adjusted IC of 0.469[22][23] - The "Outperformance Enhanced Industry Rotation Strategy" achieved a monthly return of 3.20% in January, with an annualized return of 12.71% and a Sharpe ratio of 0.505[32][33] - The "Prosperity Valuation Industry Rotation Strategy" achieved a monthly return of 3.76% in January, with an annualized return of 10.07% and a Sharpe ratio of 0.389[32][33] - The "Research Activity Industry Selection Strategy" had a monthly return of 0.20% in January, with an annualized return of 6.26% and a Sharpe ratio of 0.316[37][42] - The report includes detailed rankings and changes in rankings for various industries based on the factors used in the strategies[44][45][47][48]

Report Overview - The report is titled "ETF Performance Tracking and Fund Flow Weekly Report (2026.1.26 - 2026.1.30)" and was released on February 2, 2026 [1] Core Viewpoints - Overseas ETF funds showed a continuous return trend, with a net inflow of 2.055 billion yuan in the past week, which was lower than the previous week. Large - cap style targets such as CSI 300 and CSI A500 received significant capital inflows, and the electronics industry had the most concentrated capital inflow at the industry level. Overseas funds continued to be positive about the allocation of relevant ETFs, focusing on core assets at the industry level and being relatively balanced at the individual stock level [16] Key Points by Category 1. Broad - based ETFs Average Weekly Returns and Fund Flows - The report presents the average weekly returns and fund inflows/outflows of broad - based ETFs [1][2] Top 10 Funds with Inflows - Funds like LIELEAS NEASOOETF (fund code: 563360.OF) had a net inflow of 1.126 billion yuan, Tianhong CSI Science and Technology Innovation and Entrepreneurship 50 ETF (fund code: 159603.OF) had a net inflow of 928 million yuan, etc [4] Top 10 Funds with Outflows - E Fund CSI 300 ETF (fund code: 510310.OF) had a net outflow of 7.4857 billion yuan, Huatai - Peregrine CSI 300 ETF (fund code: 510300.OF) had a net outflow of 7.4319 billion yuan, etc [6] 2. Industry - themed, Smart Beta, and Hong Kong Stock Connect ETFs Average Weekly Returns and Fund Flows - It includes the average weekly returns and fund inflows/outflows of industry - themed, Smart Beta, and Hong Kong Stock Connect ETFs. For example, in the Smart Beta ETF, different categories such as cycle, green/ESG, etc., had different fund inflow/outflow situations [7][8] Hong Kong Stock Connect ETFs - The average weekly returns and fund inflows/outflows of Hong Kong Stock Connect ETFs in different categories like technology, finance, etc., are presented. For instance, the technology - themed Hong Kong Stock Connect ETF had a net inflow of 1.76 billion yuan [9][12] 3. Equity ETFs - The report provides statistics on the number, scale, and trading volume of equity ETFs, including different index - corresponding funds, their scale, scale proportion, trading volume, and trading volume proportion [13][14] 4. Overseas ETFs Weekly Fund Flows - Overseas ETF funds had a net inflow of 2.055 billion yuan in the past week. Large - cap style targets like CSI 300 and CSI A500 had significant capital inflows, with 1.562 billion yuan and 1.51 billion yuan respectively. The electronics industry had the most concentrated capital inflow of 384 million yuan [16][23] Individual Stock Capital Inflows - Among individual stocks, Kweichow Moutai had the largest capital inflow of 65 million yuan, followed by Contemporary Amperex Technology Co., Limited with 44 million yuan [16][17]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In January, the approval of urban investment bonds was characterized by a continuous increase in registration quotas, a slowdown in the approval pace, and a low level of terminated project scale. The overall financing pace at the beginning of the year shifted from loose to tight [5][47]. - The marginal changes in bond market supervision and approval reflect that the current implementation of debt - resolution policies continues the orientation of "strictly controlling increments, resolving existing stocks, and providing long - term empowerment." The issuance of the third batch of 2 trillion yuan in replacement bonds started in early January, and the Ministry of Finance further clarified that ultra - long - term special treasury bonds would continue to be arranged in 2026. Considering that 2026 is the sprint stage for debt resolution and the 6 - trillion - yuan replacement bond plan is coming to an end, the upward trend of urban investment bond registration quotas is expected to continue [5][47]. - In the long run, the urban investment debt - resolution work has entered a critical period of accelerating and improving efficiency. The debt - resolution paths will be more diverse, and the differentiation of debt - resolution effects among different regions will become more obvious. As the goal of clearing hidden debts approaches, local debt - resolution efforts will continue to increase, the market - oriented clearance process of financing platforms will accelerate, and measures to promote platform transformation through asset restructuring will be more in - depth [6][48]. 3. Summary According to the Directory 3.1 Registration Situation: Continuous Increase in Urban Investment Registration Quotas - In January, the registration quota of urban investment platforms continued to rise. The registration scale of provincial, municipal, and district - county urban investment all increased to varying degrees, while the registration scale of weak - quality districts and counties declined. The scale in regions such as Zhejiang, Shandong, and Hubei increased significantly month - on - month [2][12]. - The planned issuance scale of urban investment bonds registered on the exchange was 315 billion yuan (previous value: 239.4 billion yuan), and that on DCM was 177.1 billion yuan (previous value: 168.5 billion yuan). The overall registration continued to rise and was higher than the quotas in the same period of the past three years [12]. - The proportion of district - county urban investment bonds in the three - month moving average among all administrative levels continued to decline for three months to 52%. The registration scale of district - county platforms with a budget revenue of less than 5 billion yuan was 66.9 billion yuan (previous value: 92.3 billion yuan), and the three - month moving average proportion increased to 37.8% [15][18]. 3.2 Approval Feedback: Slowdown in Urban Investment Bond Approval - In January, the approval pace of DCM and the exchange for urban investment bonds slowed down. The average number of feedbacks from DCM was 2.4 times (previous value: 2.4 times), and the feedback time increased to 41.5 days (previous value: 40.6 days); the average number of feedbacks from the exchange was 4.2 times (previous value: 4.2 times), and the feedback time increased to 77.8 days (previous value: 68.9 days) [25]. - The feedback pace of public urban investment corporate bonds in prefecture - level cities accelerated significantly, while that of private urban investment corporate bonds in prefecture - level and district - county levels slowed down [30]. - The approval feedback days in Sichuan, Fujian, Hubei and other regions were significantly extended. The approval pace in Anhui, Jiangxi, Hunan and other regions accelerated significantly, while Shandong and Henan continued the trend of a slowdown in the approval speed [32]. - The approval pace of weak - quality district - county platform bonds continued to slow down. The feedback days of district - county platforms with a general budget revenue of less than 5 billion yuan were 67.2 days (previous value: 65.2 days), lower than the average of last year [35]. 3.3 Terminated Issuance: Low - Level Maintenance of Terminated Project Scale - In January, the scale of terminated projects remained at a low level. The planned issuance scale of terminated urban investment bonds increased from 500 million yuan to 600 million yuan, and the number of terminated projects was the same as last month, both being 1. The proportion of the terminated scale of district - county urban investment bonds in the three - month moving average increased to 74% [37]. - The terminated projects of urban investment platforms mainly occurred in Hubei, mainly in district - county platforms [42]. 3.4 Research Conclusions and Suggestions - The approval of urban investment bonds in January showed the characteristics of a continuous increase in registration quotas, a slowdown in the approval pace, and a low - level maintenance of terminated project scale. The overall financing pace at the beginning of the year shifted from loose to tight [5][47]. - The marginal changes in bond market supervision and approval reflect the implementation of the current debt - resolution policy. Considering the debt - resolution situation in 2026, the upward trend of urban investment bond registration quotas is expected to continue [5][47]. - In the long run, the urban investment debt - resolution work has entered a critical period, with more diverse debt - resolution paths and more obvious differentiation in debt - resolution effects among regions. Local debt - resolution efforts will increase, and platform transformation will be promoted more deeply [6][48].

- The report discusses the performance of the four major stock index futures contracts (IF, IC, IM, IH) over the past week, highlighting that IH had the highest increase of 0.90%, while IC experienced the largest decline of -0.08%[3][11] - The average trading volume of the contracts showed mixed performance, with IC increasing the most by 2.72%, and IH decreasing the most by -16.58%[3][11] - The average open interest of all four contracts declined, with IF showing the largest decrease of -11.61%, and IM the smallest decrease of -0.69%[3][11] - The annualized basis rates for the current contracts of IF, IC, IM, and IH were -2.13%, -4.76%, -8.13%, and -0.44%, respectively, as of last Friday's close[3][11] - The inter-month spread rates for IF, IC, IM, and IH contracts were at the 3.10%, 0.60%, 11.80%, and 31.30% percentiles of their historical distributions since 2019, with IM and IH at normal levels and IF and IC at relatively low levels[4][12] - Dividend forecasts for the next year indicate that the Shanghai and Shenzhen 300 Index, CSI 500 Index, SSE 50 Index, and CSI 1000 Index will impact index points by 81.23, 90.90, 72.77, and 68.78, respectively[4][12] - The report provides a formula for calculating forward and reverse arbitrage returns in index futures trading, considering factors such as transaction costs, margin ratios, and risk-free rates[46] - The dividend estimation method involves using historical dividend patterns and EPS data to predict future dividend points, with specific formulas provided for calculating the impact on index points[48][52]

Group 1 - The core disturbance in January industry data is attributed to the timing of the Spring Festival, which significantly affects production, consumption, and export data compared to the previous lunar year [1][5][12] - The production sector shows an overall weakness compared to the same lunar period last year, with notable contraction in construction-related segments, while manufacturing exhibits divergence in performance [1][12] - Consumption patterns reveal significant declines in real estate transaction areas, while overall commodity consumption remains relatively stable, with variations in service consumption [1][13] Group 2 - The impact of the Spring Festival timing extends beyond January, potentially suppressing March production and investment data during the peak season [2][20] - The construction sector's new project initiation is expected to continue its downward trend due to ongoing inventory reduction policies, which will affect the overall recovery pace post-holiday [3][20] - Despite a more proactive fiscal policy and faster issuance of special bonds, the recovery in production and investment post-holiday is anticipated to be limited compared to previous years [3][20] Group 3 - In the energy and resources sector, coal supply constraints due to production cuts and holiday shutdowns have led to price fluctuations, while metal demand shows improvement [4][25] - The real estate sector remains under pressure with low transaction volumes and investment levels, impacting demand for construction materials [4][34] - The financial sector shows high activity in the A-share market, with insurance premium income experiencing a year-on-year decline, while new credit issuance exceeds expectations [4][34] Group 4 - The manufacturing sector continues to show strong growth in machinery and heavy truck sales, benefiting from domestic equipment renewal policies and demand from emerging markets [4][34] - Consumer spending remains stable overall, but demand for durable goods is under pressure due to high base effects and policy rollbacks [4][34] - The TMT sector is experiencing multiple catalysts from both industry and policy perspectives, while the new energy sector sees a decline in domestic sales but strong export growth [4][34]

Report Industry Investment Rating - Not provided in the report Core Viewpoints - Last week (2/2 - 2/6), bond - type ETFs had a net capital outflow of 4.1 billion yuan. Credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs had net outflows of 6.4 billion yuan, net inflows of 1.2 billion yuan, and net inflows of 1.1 billion yuan respectively. The weekly cumulative unit - net - value changes of credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs compared to the previous week were +0.02%, +0.16%, and - 0.07% respectively [2][13]. - There were no newly issued bond ETFs last week [3][17]. - As of February 6, 2026, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs were 130.1 billion yuan, 369.5 billion yuan, and 76.9 billion yuan respectively, with credit - bond ETFs accounting for 64% of the total scale. Compared to the previous week, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs increased by 1.7 billion yuan, decreased by 5.3 billion yuan, and increased by 0.9 billion yuan respectively. Among credit - bond ETFs, the circulating market values of benchmark - market - making credit - bond ETFs and science - innovation bond ETFs were 104.3 billion yuan and 278.2 billion yuan respectively, decreasing by 2.4 billion yuan and 7.9 billion yuan compared to the previous week [4][19][20]. - Last week, the cumulative unit net values of interest - rate bond ETFs and credit - bond ETFs closed at 1.19 and 1.03 respectively. The return rate of benchmark - market - making credit - bond ETFs since their establishment has been stable at around 1.47%, and the return rate of science - innovation bond ETFs since their establishment has marginally increased to 0.46% [5][27][29]. - Last week, the average premium/discount rates of credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs were - 0.14%, - 0.01%, 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 - innovation bond ETFs were - 0.19% and - 0.13% respectively [6][34]. - Last week, the turnover rates were in the order of interest - rate bond ETFs > credit - bond ETFs > convertible - bond ETFs. The weekly turnover rates of interest - rate bond ETFs and credit - bond ETFs improved, rising to 165% and 141% respectively, while the weekly turnover rate of convertible - bond ETFs marginally decreased to 138%. Specifically, products such as Huaxia Shanghai Stock Exchange Benchmark - Market - Making Treasury Bond ETF, Southern China Securities AAA Science and Technology Innovation Corporate Bond ETF, and Morgan Shanghai Stock Exchange AAA Science and Technology Innovation Corporate Bond ETF had relatively high turnover rates [7][39]. Summary by Directory 1. Issuance Progress Tracking - No new bond ETFs were issued last week [3][17] 2. Existing Product Tracking - As of February 6, 2026, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs were 130.1 billion yuan, 369.5 billion yuan, and 76.9 billion yuan respectively, with credit - bond ETFs accounting for 64% of the total scale. The top two in terms of circulating market value were Haifutong China Securities Short - Term Financing ETF and Bosera Convertible Bond ETF, with values of 68.1 billion yuan and 65.0 billion yuan respectively [4][19][20]. - Compared to the previous week, the circulating market values of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs increased by 1.7 billion yuan, decreased by 5.3 billion yuan, and increased by 0.9 billion yuan respectively. The product with a significant increase in scale last week was Haifutong China Securities Short - Term Financing ETF, with a month - on - month increase of 3.3 billion yuan, followed by Penghyang China Bond - 30 - Year Treasury Bond ETF and Bosera Shanghai Stock Exchange 30 - Year Treasury Bond ETF [4][20]. - Among credit - bond ETFs, the circulating market values of benchmark - market - making credit - bond ETFs and science - innovation bond ETFs were 104.3 billion yuan and 278.2 billion yuan respectively, decreasing by 2.4 billion yuan and 7.9 billion yuan compared to the previous week [4][24]. 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 1.19 and 1.03 respectively [27]. - The return rate of benchmark - market - making credit - bond ETFs since their establishment has been stable at around 1.47%, and the return rate of science - innovation bond ETFs since their establishment has marginally increased to 0.46% [29]. 4. Premium/Discount Rate Tracking - The premium/discount rate of ETFs measures the deviation between the secondary - market trading price of the fund and its unit net value. A high premium rate usually indicates that the market is optimistic about the fund or its underlying assets, while a high discount rate indicates pessimism or lack of interest [34]. - Last week, the average premium/discount rates of credit - bond ETFs, interest - rate bond ETFs, and convertible - bond ETFs were - 0.14%, - 0.01%, 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 - innovation bond ETFs were - 0.19% and - 0.13% respectively [6][34]. 5. Turnover Rate Tracking - The weekly turnover rate of ETFs is calculated by dividing the weekly trading volume by the fund shares. Last week, the turnover rates were in the order of interest - rate bond ETFs > credit - bond ETFs > convertible - bond ETFs. The weekly turnover rates of interest - rate bond ETFs and credit - bond ETFs improved, rising to 165% and 141% respectively, while the weekly turnover rate of convertible - bond ETFs marginally decreased to 138% [7][39]. - Specifically, products such as Huaxia Shanghai Stock Exchange Benchmark - Market - Making Treasury Bond ETF, Southern China Securities AAA Science and Technology Innovation Corporate Bond ETF, and Morgan Shanghai Stock Exchange AAA Science and Technology Innovation Corporate Bond ETF had relatively high turnover rates [7][39].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 22.22 CNY per share based on a PE of 37x for 2026 [5]. Core Insights - The global demand for gas turbines is on the rise, which is expected to accelerate the revenue growth of the company's waste heat boilers. The AIDC catalytic gas turbine industry is projected to see significant growth, with demand in the U.S. expected to increase from 4.1 GW to 57.9 GW between 2025 and 2028, with growth rates of 219%, 135%, and 88% for 2026-2028 respectively [2]. - The company is a leading domestic player in waste heat boilers, holding over 50% market share in China and has expanded its presence in overseas markets, targeting regions along the Belt and Road Initiative [2]. - The company has a strong foothold in the solar thermal power sector, with a market share of 58% in total design capacity and 55% in project numbers for significant solar thermal projects in China from 2021 to 2024 [3]. - The nuclear power sector is also seeing a revival, with the company planning to expand its nuclear power business and has already supplied numerous components to major nuclear power groups [4]. Summary by Sections Section 1: Company Overview - The company has evolved from a traditional waste heat boiler leader to a comprehensive supplier of clean energy equipment, with a history of nearly 50 years in the industry [15]. - It has diversified its offerings to include nuclear power and molten salt energy storage systems, participating in significant projects in these areas [15][16]. Section 2: Waste Heat Boilers - Waste heat boilers are critical components in gas-steam combined cycle systems, which enhance energy efficiency and reduce emissions [46]. - The demand for waste heat boilers is expected to rise in tandem with the growth of the gas turbine industry, particularly as global gas turbine manufacturers expand their production capacity [2][50]. Section 3: Solar Thermal Power - The company is positioned well in the solar thermal power market, benefiting from government policies that promote renewable energy integration [3]. - It has established long-term partnerships with leading clients in the solar thermal sector, which is expected to drive future order growth [3]. Section 4: Nuclear Power - The approval of nuclear power units in China is on the rise, which is anticipated to boost demand for nuclear equipment [4]. - The company has been a reliable supplier for major nuclear power projects and is expanding its capabilities in advanced nuclear technologies [4]. Section 5: Financial Projections - Revenue forecasts for the company are projected to be 6.31 billion CNY in 2025, 7.316 billion CNY in 2026, and 8.525 billion CNY in 2027, with corresponding net profits of 431 million CNY, 502 million CNY, and 571 million CNY [5][8].

Quantitative Models and Construction Methods Model 1: Fund Selection Strategy Based on Trading Motivation Factor and Stock Price Difference Income Factor - **Model Name**: Fund Selection Strategy Based on Trading Motivation Factor and Stock Price Difference Income Factor - **Construction Idea**: The strategy aims to select funds with high stock price difference income, active trading motivation, and low possibility of performance dressing[2] - **Construction Process**: - The strategy combines the trading motivation factor and the stock price difference income factor - The trading motivation factor is constructed by classifying the trading motivations of funds[23] - The stock price difference income factor is derived from the stock price difference income in the fund's income statement[23] - The strategy adopts a semi-annual rebalancing approach, rebalancing at the end of March and August each year[23] - **Evaluation**: The strategy significantly outperformed the Wind Partial Equity Hybrid Fund Index in January 2026[2] Model 2: Fund Selection Strategy Based on Fund Manager's Trading Uniqueness - **Model Name**: Fund Selection Strategy Based on Fund Manager's Trading Uniqueness - **Construction Idea**: The strategy aims to capture the unique trading patterns of fund managers to generate excess returns[3] - **Construction Process**: - Construct a network based on the detailed holdings and transactions of fund managers[31] - Develop an indicator to measure the uniqueness of fund managers' trading[31] - The strategy adopts a semi-annual rebalancing approach, rebalancing at the beginning of April and September each year[31] - **Evaluation**: The strategy outperformed the Wind Partial Equity Hybrid Fund Index in January 2026[3] Model 3: Industry Theme ETF Rotation Strategy Based on Application Information - **Model Name**: Industry Theme ETF Rotation Strategy Based on Application Information - **Construction Idea**: The strategy aims to select industry theme ETFs similar to the applied ETFs to capture market investment hotspots[4] - **Construction Process**: - Conduct event-driven research on the entire issuance process of funds[36] - Construct the industry theme application similarity factor (T+1) based on the information disclosed during the application material public stage[36] - The strategy adopts a monthly rebalancing approach, with a transaction fee rate of 0.1% per side[36] - **Evaluation**: The strategy significantly outperformed the CSI 800 Index in January 2026[4] Model Backtesting Results Fund Selection Strategy Based on Trading Motivation Factor and Stock Price Difference Income Factor - **Monthly Return**: 10.96%[27] - **Annualized Return**: 11.56%[27] - **Annualized Volatility**: 21.60%[27] - **Sharpe Ratio**: 0.54[27] - **Maximum Drawdown**: 48.39%[27] - **Annualized Excess Return**: 3.87%[27] - **Excess Maximum Drawdown**: 19.22%[27] - **Information Ratio (IR)**: 0.64[27] - **Monthly Excess Return**: 3.60%[27] Fund Selection Strategy Based on Fund Manager's Trading Uniqueness - **Monthly Return**: 8.03%[35] - **Annualized Return**: 14.26%[35] - **Annualized Volatility**: 19.47%[35] - **Sharpe Ratio**: 0.73[35] - **Maximum Drawdown**: 37.26%[35] - **Annualized Excess Return**: 5.70%[35] - **Excess Maximum Drawdown**: 10.84%[35] - **Information Ratio (IR)**: 1.10[35] - **Monthly Excess Return**: 0.86%[35] Industry Theme ETF Rotation Strategy Based on Application Information - **Monthly Return**: 22.66%[40] - **Annualized Return**: 22.45%[40] - **Annualized Volatility**: 21.39%[40] - **Sharpe Ratio**: 1.05[40] - **Maximum Drawdown**: 34.89%[43] - **Annualized Excess Return**: 13.84%[43] - **Excess Maximum Drawdown**: 19.07%[43] - **Information Ratio (IR)**: 0.76[43] - **Monthly Excess Return**: 18.18%[43]