Zheng Quan Shi Bao·2025-10-26 22:18Core Viewpoint - The A-share market is experiencing a style shift from small-cap to large-cap stocks, driven by macroeconomic stabilization and a focus on performance certainty amid rising risk aversion [1][2][6] Group 1: Market Performance - The Shanghai Stock Exchange 50 Index has risen by 4.33% in the past month, reaching a new high for the year, while the CSI 2000 Index and the North Exchange 50 Index have declined by 6.77% and 0.25%, respectively, indicating a market style switch [1][2] - Since the "9·24 market" in 2024, the CSI 2000 Index had previously outperformed the SSE 50 Index by 109.65%, but recently it has underperformed by about 5 percentage points [2] Group 2: Fund Manager Insights - Fund managers believe that the current market environment is pushing funds from small-cap to mid and large-cap stocks due to performance certainty and risk aversion [1][3] - Some fund managers are focusing on mid-cap stocks, which have been overlooked, as market risk appetite improves and funds begin to flow back into these stocks [3] Group 3: Fund Adjustments - Many funds are undergoing a significant shift from small-cap to large-cap stocks, as seen in the holdings of top-performing funds like Yongying Technology and Nuon Research Select, which have transitioned to larger market cap stocks [4][5] - The rapid growth of fund sizes is influencing managers to allocate more to liquid large-cap stocks, creating a positive feedback loop where rising stock prices attract more investments [5] Group 4: Institutional and Structural Factors - Institutional changes, such as the introduction of new performance benchmarks for public funds, are expected to reinforce the trend towards large-cap stocks [6] - The valuation of large-cap stocks, particularly the CSI 300 Index, is currently low, suggesting strong defensive characteristics and potential for capital inflow as small-cap stocks weaken [6]