Quantitative Models and Construction Methods 1. Model Name: PB-ROE-50 Combination - **Model Construction Idea**: The PB-ROE-50 combination is constructed based on the principle of selecting stocks with low price-to-book (PB) ratios and high return on equity (ROE), aiming to capture value and profitability factors[25] - **Model Construction Process**: - Stocks are selected based on their PB and ROE metrics - The portfolio is rebalanced periodically to maintain the desired exposure to these factors - The construction details are referenced in earlier reports[25][26] - **Model Evaluation**: The model experienced a drawdown in excess returns across all stock pools during the week, indicating potential short-term underperformance[25] --- Model Backtesting Results 1. PB-ROE-50 Combination - **Excess Return**: - CSI 500: -0.23% this week, 2.92% year-to-date - CSI 800: -0.98% this week, 15.82% year-to-date - Full Market: -1.39% this week, 18.21% year-to-date[26] - **Absolute Return**: - CSI 500: -1.49% this week, 30.06% year-to-date - CSI 800: -2.10% this week, 38.80% year-to-date - Full Market: -1.91% this week, 46.11% year-to-date[26] --- Quantitative Factors and Construction Methods 1. Factor Name: Residual Volatility Factor - **Factor Construction Idea**: Captures the residual volatility of stocks after controlling for market and sector effects, aiming to identify stocks with stable performance[20] - **Factor Construction Process**: - Calculate the residual volatility of stock returns after regressing against market and sector returns - Rank stocks based on their residual volatility and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered positive returns this week, indicating its effectiveness in capturing stable stocks during the period[20] 2. Factor Name: Leverage Factor - **Factor Construction Idea**: Measures the financial leverage of companies, aiming to capture the risk-return tradeoff associated with leverage[20] - **Factor Construction Process**: - Calculate the leverage ratio of companies (e.g., debt-to-equity ratio) - Rank stocks based on their leverage and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered positive returns this week, suggesting its relevance in the current market environment[20] 3. Factor Name: Beta Factor - **Factor Construction Idea**: Measures the sensitivity of a stock's returns to market returns, aiming to capture systematic risk[20] - **Factor Construction Process**: - Calculate the beta of stocks using historical return data - Rank stocks based on their beta and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered negative returns this week, indicating underperformance in the current market environment[20] 4. Factor Name: Size Factor - **Factor Construction Idea**: Captures the size effect by focusing on small-cap stocks, which tend to outperform large-cap stocks over time[20] - **Factor Construction Process**: - Rank stocks based on their market capitalization - Construct a portfolio with a tilt towards smaller-cap stocks[20] - **Factor Evaluation**: The factor delivered negative returns this week, despite the general preference for small-cap stocks in the market[20] 5. Factor Name: Momentum Factor - **Factor Construction Idea**: Captures the momentum effect by focusing on stocks with strong recent performance[20] - **Factor Construction Process**: - Calculate the past returns of stocks over a specific period (e.g., 6 months or 12 months) - Rank stocks based on their momentum and construct a portfolio with the desired exposure[20] - **Factor Evaluation**: The factor delivered negative returns this week, indicating a reversal effect in the market[20] --- Factor Backtesting Results 1. Residual Volatility Factor - Weekly Return: 0.50%[20] 2. Leverage Factor - Weekly Return: 0.36%[20] 3. Beta Factor - Weekly Return: -1.10%[20] 4. Size Factor - Weekly Return: -0.92%[20] 5. Momentum Factor - Weekly Return: -0.70%[20]

Core Viewpoint - The article provides a comprehensive analysis of market performance, highlighting the varying returns of different factors and strategies within the stock market, indicating a mixed sentiment among investors and the potential for selective investment opportunities [4][5][6][7][8][9][10]. Factor Performance - In the overall market, the valuation factor achieved a positive return of 0.40%, while the market capitalization factor and non-linear market capitalization factor recorded negative returns of -0.72% and -0.40% respectively, suggesting a small-cap style market performance [4]. - In the CSI 300 stock pool, the best-performing factors included the inverse TTM price-to-earnings ratio (3.05%), price-to-earnings ratio (2.30%), and price-to-book ratio (2.06%), while the worst performers were TTM gross profit margin (-2.11%), total asset growth rate (-1.80%), and quarterly gross profit margin (-1.58%) [5]. - In the CSI 500 stock pool, the top factors were the inverse TTM price-to-earnings ratio (2.71%), price-to-book ratio (2.07%), and price-to-earnings ratio (1.74%), with the lowest performers being TTM gross profit margin (-2.13%), quarterly gross profit margin (-2.02%), and quarterly ROA year-on-year (-1.50%) [5]. - In the liquidity 1500 stock pool, the leading factors were the inverse TTM price-to-earnings ratio (1.74%), price-to-earnings ratio (1.68%), and price-to-book ratio (1.34%), while the worst were post-opening returns (-3.00%), TTM gross profit margin (-2.64%), and quarterly gross profit margin (-2.50%) [5]. Industry Factor Performance - The fundamental factors showed varied performance across industries, with net asset growth rate, net profit growth rate, earnings per share, and TTM operating profit factors yielding positive returns in the oil and petrochemical industry [6]. - Among valuation factors, the BP factor performed well, achieving positive returns across most industries, while residual volatility and liquidity factors showed significant positive returns in the comprehensive industry [6]. - The market exhibited a notable small-cap style across most industries during the week [6]. Strategy Performance - The PB-ROE-50 combination achieved positive excess returns in the CSI 500 and CSI 800 stock pools, with excess returns of 1.00% and 0.48% respectively, while the overall market stock pool recorded an excess return of -2.00% [7]. - The private equity research tracking strategy yielded negative excess returns, while the public equity research selection strategy achieved an excess return of 0.00% relative to the CSI 800, and the private equity tracking strategy had an excess return of -1.96% [8]. - The block trading combination achieved positive excess returns relative to the CSI All Share Index, with an excess return of 1.08% [9]. - The targeted issuance combination also recorded positive excess returns relative to the CSI All Share Index, with an excess return of 1.93% [10].

Group 1: Market Trends - The market is currently exhibiting a small-cap style, with valuation factors yielding a positive return of 0.40%, while market capitalization factors have negative returns of -0.72% and -0.40% respectively [4] - Momentum and Beta factors also showed negative returns of -0.79% and -0.43%, indicating a reversal effect in the market [4] - The large transaction portfolio achieved a positive excess return of 1.08% relative to the CSI All Share Index [4] Group 2: Fixed Income - The secondary market for publicly listed REITs in China has shown a downward trend, with the weighted REITs index closing at 182.3 and a weekly return of -0.48% [5] - In comparison to other major asset classes, the return rates ranked from high to low are: convertible bonds, crude oil, A-shares, pure bonds, gold, REITs, and US stocks [5] - Credit bonds issued totaled 334, with a total issuance scale of 363.4 billion yuan, reflecting a week-on-week decrease of 7.66% [5] - Industrial bonds accounted for 162 issues, with an issuance scale of 176.9 billion yuan, marking a week-on-week increase of 5.36% [5] Group 3: Oil and Chemical Industry - OPEC+ announced a production increase of 137,000 barrels per day in December, while suspending production increases from January to March 2026, which is expected to alleviate concerns over oil supply [6] - The ongoing geopolitical tensions, particularly the prolonged Russia-Ukraine conflict and increased sanctions on Russia, are likely to provide a risk premium for oil prices [6] Group 4: Basic Chemicals - Strong demand for energy storage and power batteries is tightening the supply-demand situation for iron phosphate, leading to improved prices and profitability for phosphate chemical companies [6] - Limited new capacity for phosphate rock in the short to medium term is expected to maintain high prices for high-grade phosphate rock, benefiting leading companies in the industry [6] Group 5: Semiconductor Industry - In Q3 2025, the company achieved a revenue of 635 million USD, reflecting a year-on-year increase of 20.7% and a quarter-on-quarter increase of 12.2%, driven by increased wafer shipments and ASP growth [7] - The revenue from 8-inch wafers was 259 million USD, showing a year-on-year decrease of 1.6% but a quarter-on-quarter increase of 11.4%, while 12-inch wafers generated 376 million USD, with a year-on-year increase of 43% and a quarter-on-quarter increase of 12.8% [7] Group 6: Healthcare Industry - The company's shareholder return plan has strengthened confidence, further solidifying its position as an industry leader [8] - The "Double Beauty + Double Health" business model has effectively built a high-quality membership system, while the acquisition of the second-largest brand in the industry, Nair, has improved its net profit margin from 6.5% to 10.4% in the first half of 2025 [8]

- **Quantitative factors tracked** - Single factor performance: In the CSI 300 stock pool, the best-performing factors this week include PE TTM inverse (3.05%), PE factor (2.30%), and PB factor (2.06%) [12][13] - In the CSI 500 stock pool, the best-performing factors include PE TTM inverse (2.71%), PB factor (2.07%), and PE factor (1.74%) [14][15] - In the liquidity 1500 stock pool, the best-performing factors include PE TTM inverse (1.74%), PE factor (1.68%), and PB factor (1.34%) [16][17] - **Sector-specific factor performance** - Fundamental factors such as net asset growth rate, net profit growth rate, per-share net asset factor, and per-share operating profit TTM factor achieved positive returns in the oil and petrochemical sector [21][22] - Valuation factors like BP factor performed well across most industries [21][22] - Residual volatility factor and liquidity factor showed significant positive returns in the comprehensive industry [21][22] - **Factor classification and market trends** - Broad market factor performance: Valuation factors achieved positive returns of 0.40%, while market capitalization factors and non-linear market capitalization factors recorded negative returns of -0.72% and -0.40%, respectively, indicating a small-cap style market trend [18][20] - Momentum factor and Beta factor recorded negative returns of -0.79% and -0.43%, respectively, reflecting a reversal effect in the market [18][20] - **Quantitative portfolio tracking** - PB-ROE-50 portfolio: This week, the portfolio achieved excess returns of 1.00% in the CSI 500 stock pool, 0.48% in the CSI 800 stock pool, and -2.00% in the broad market stock pool [23][24] - Institutional research portfolio: The public fund research stock selection strategy achieved excess returns of 0.00% relative to the CSI 800, while the private fund research tracking strategy recorded excess returns of -1.96% relative to the CSI 800 [25][26] - Block trading portfolio: Constructed based on the principle of "high transaction volume, low volatility," this portfolio achieved excess returns of 1.08% relative to the CSI All Share Index this week [29][30] - Private placement portfolio: Built around the event-driven strategy of targeted placements, this portfolio achieved excess returns of 1.93% relative to the CSI All Share Index this week [35][36] - **Performance metrics of quantitative portfolios** - PB-ROE-50 portfolio: Weekly excess return of 1.00% in CSI 500, 0.48% in CSI 800, and -2.00% in the broad market [24] - Institutional research portfolio: Weekly excess return of 0.00% for public fund research stock selection and -1.96% for private fund research tracking [26] - Block trading portfolio: Weekly excess return of 1.08% [30] - Private placement portfolio: Weekly excess return of 1.93% [36]

Group 1 - The core viewpoint highlights that in the current loose monetary policy environment, small-cap stocks are gaining an advantage, with the North Exchange 50 Index effectively reflecting the performance of small and micro-cap stocks, characterized by high elasticity and policy adaptability [1][2] - As of November 7, 2025, the North Exchange 50 Index has risen by 1.09%, with significant gains in constituent stocks such as Anda Technology (up 23.94%), Silane Technology (up 10.27%), and Huami New Materials (up 6.88%) [1] - The North Exchange is focused on improving its merger and acquisition system, guiding financial resources towards key core technology sectors, and enhancing the attractiveness of its market through various reforms and new bond products [1] Group 2 - The North Exchange's overall revenue and profit showed recovery in the third quarter, although the profit growth rate remains negative, indicating pressure on core profitability [2] - There is optimism regarding the North Exchange's future performance, with favorable factors accumulating and clear signals of policy warming, particularly the anticipated launch of the North Exchange 50 ETF, which is expected to attract incremental funds [2] - The North Exchange aims to enhance investment transaction convenience by accelerating the launch of the North Exchange 50 ETF and exploring after-hours fixed-price trading [2]

Macro Analysis - The land market remains sluggish, dragging down local government fund revenues, which are significantly lagging behind previous years [2] - The acceleration of fund activation post-special bond issuance is reflected in a substantial year-on-year decrease in fiscal deposits, aiding in improving narrow liquidity and stabilizing infrastructure investment growth for the year [2] - The combined effect of policy financial tools and the use of local debt limits amounts to 1 trillion yuan, positively impacting credit expansion and investment [2] Strategy Insights - The market is likely still in a bull phase, although it may enter a wide fluctuation stage in the short term, with the current maximum drawdown being 4.01%, which is within historical levels [4] - Short-term focus should be on defensive and consumer sectors, while mid-term attention should shift to TMT and advanced manufacturing [4] Bond Market Overview - The issuance of credit bonds increased significantly, with 379 bonds issued totaling 433.33 billion yuan, a 206.54% increase compared to the previous period [5] - The secondary market for REITs saw a notable decline, with the weighted REITs index closing at 181.3, reflecting a weekly return of -1.42% [4][5] Real Estate Sector - In September, the transaction area of commercial residential properties in 30 core cities was 10.8 million square meters, down 1.2% year-on-year but up 22.2% month-on-month, with an average transaction price of 24,133 yuan per square meter, up 1.9% year-on-year and 1.5% month-on-month [9] - The second-hand housing market in 15 core cities saw a transaction area of 12.23 million square meters, up 15.5% year-on-year and 2.6% month-on-month [9] Electric New Energy Sector - The electric new energy sector is experiencing increased volatility due to fluctuating tariff policies, with the storage and lithium battery segments remaining the most promising [10] - High-tech developments, such as the 800VDC distribution architecture by Nvidia, are expected to influence the sector's future trends [10] Non-Ferrous Metals Sector - Global copper inventories reached a near five-year high, with supply constraints expected to keep prices elevated despite potential short-term volatility due to trade tensions [11] - Recommendations include companies like Zijin Mining and Luoyang Molybdenum, with a focus on the recovery of demand in Q4 [11] Chemical Industry - The supply-demand dynamics for lithium hexafluorophosphate are improving, with prices expected to rise, suggesting a focus on leading companies in this segment [13] - The oil and gas sector shows resilience in pricing, particularly for the "three barrels of oil," with expectations for natural gas consumption to recover in the upcoming winter [12] Company Research - Jianfa Property reported a sales figure of 95.6 billion yuan for the first nine months, a year-on-year increase of 12.1%, with a strong outlook for project deliveries [14] - China Jiemao's sales reached 80.7 billion yuan, up 27% year-on-year, indicating robust performance and growth potential in property management projects [15] - Huayou Cobalt achieved a net profit of 4.22 billion yuan in the first three quarters, a 39.6% increase year-on-year, with strong future profit projections [16] - Zijin Mining's net profit for the first three quarters was 37.86 billion yuan, reflecting a 55.5% year-on-year growth, with positive forecasts for the coming years [17]

Core Viewpoint - The report highlights the performance of various market factors and investment strategies, indicating a mixed performance across different stock pools and strategies, with some factors showing positive returns while others underperformed [4][5][6][7][8][9][10]. Factor Performance - In the overall market stock pool, the momentum factor achieved a positive return of 0.43%, while the Beta factor, market capitalization factor, and non-linear market capitalization factor recorded negative returns of -1.50%, -0.91%, and -0.54% respectively, indicating a small-cap style market performance [4]. - In the CSI 300 stock pool, the best-performing factors included the standard deviation of 5-day trading volume (2.12%), the proportion of downside volatility (1.78%), and the 5-day index moving average of trading volume (1.35%). Conversely, the worst-performing factors were the 5-day reversal (-3.60%), quarterly gross profit margin (-3.43%), and quarterly ROA (-3.38%) [5]. - In the CSI 500 stock pool, the top-performing factors were the inverse of TTM P/E ratio (3.99%), the proportion of downside volatility (3.80%), and the P/E factor (3.17%). The underperforming factors included the 5-day reversal (-1.95%), 5-day average turnover rate (-1.17%), and the 5-day index moving average of trading volume (-1.15%) [5]. - In the liquidity 1500 stock pool, the best-performing factors were the correlation between intraday volatility and trading volume (2.27%), the proportion of downside volatility (1.80%), and the P/B ratio factor (1.51%). The worst-performing factors were quarterly EPS (-1.36%), standardized expected external income (-1.29%), and the 5-day reversal (-1.25%) [5]. Industry Factor Performance - The fundamental factors showed varied performance across industries, with net asset growth rate, net profit growth rate, earnings per share, and TTM operating profit factors yielding consistent positive returns in the non-bank financial sector. Valuation factors such as BP and EP also performed well in the home appliance, comprehensive, and non-bank financial sectors. Residual volatility and liquidity factors showed significant positive returns in the coal industry, while large-cap styles were prominent in the food and beverage, beauty care, and banking sectors [6]. Strategy Performance - The PB-ROE-50 combination achieved positive excess returns in the CSI 500 stock pool, with an excess return of 0.15%. However, it underperformed in the CSI 800 stock pool with an excess return of -1.50% and in the overall market stock pool with an excess return of -2.52% [7]. - The public fund research selection strategy and private fund research tracking strategy both recorded negative excess returns, with the public fund strategy yielding -0.94% relative to the CSI 800 and the private fund strategy yielding -4.83% [8]. - The block trading combination achieved positive excess returns relative to the CSI All Share Index, with an excess return of 1.56% [9]. - The targeted issuance combination also achieved positive excess returns relative to the CSI All Share Index, with an excess return of 1.86% [10].

Market Strategy - The market is likely still in a bull phase, but may enter a wide fluctuation stage in the short term. The current market correction aligns with historical patterns, with a maximum drawdown of 4.01%, which is within historical levels. Short-term focus should be on defensive and consumer sectors, while mid-term attention should be on TMT and advanced manufacturing [4] Quantitative Analysis - The market is exhibiting a small-cap style, with momentum factors yielding a positive return of 0.43%. Conversely, Beta, market capitalization, and non-linear market capitalization factors recorded negative returns of -1.50%, -0.91%, and -0.54% respectively. The large transaction portfolio achieved an excess return of 1.56% relative to the CSI All Share Index [5] Fixed Income - The convertible bond market and equity market both experienced significant adjustments, with the CSI Convertible Bond Index declining by 2.3% and the CSI All Share Index by 3.5%. Year-to-date, the CSI Convertible Bond Index has increased by 14.4%, while the CSI All Share Index has risen by 19.0%. Despite the convertible bond market underperforming relative to the equity market, it remains a relatively high-quality asset in the long term, although current valuation levels are generally high [5] Commodity Analysis - Global inventories of electrolytic copper at the three major exchanges reached a near five-year high for the same period. Short-term fluctuations in copper prices may arise from changes in US-China trade relations. Freeport's reduction of copper production for 2025-2026 will keep supply tight, while improved production of air conditioning units in Q4 is expected to boost demand [8] Oil and Gas Sector - The outlook for the "Big Three" oil companies remains positive, with oil price resilience expected despite recent declines driven by geopolitical easing and supply-demand concerns. The IEA has lowered global oil demand forecasts, indicating potential oversupply risks. However, the "Big Three" demonstrate strong performance during price downturns, showcasing their ability to navigate through cycles. Anticipated cold weather this winter may enhance natural gas consumption, further supporting the sector [9] Chemical Industry - The supply-demand dynamics for hexafluorophosphate lithium are showing marginal improvement, with prices expected to continue rising. The primary drivers for this price increase are robust demand recovery and tight supply conditions. Downstream demand from electrolyte and battery manufacturers has significantly rebounded, while upstream producers have not expanded capacity significantly during the industry's downturn, leading to most manufacturers operating at full capacity [9]

Quantitative Models and Construction Methods Factor Performance Tracking Single Factor Performance - Factors with the best performance in the CSI 300 stock pool this week include the standard deviation of 5-day trading volume (2.12%), the proportion of downside volatility (1.78%), and the 5-day exponential moving average of trading volume (1.35%) [1][12] - Factors with the worst performance in the CSI 300 stock pool this week include the 5-day reversal (-3.60%), single-quarter total asset gross profit margin (-3.43%), and single-quarter ROA (-3.38%) [1][12] - Factors with the best performance in the CSI 500 stock pool this week include the inverse of the P/E ratio TTM (3.99%), the proportion of downside volatility (3.80%), and the P/E ratio factor (3.17%) [14] - Factors with the worst performance in the CSI 500 stock pool this week include the 5-day reversal (-1.95%), 5-day average turnover rate (-1.17%), and the 5-day exponential moving average of trading volume (-1.15%) [14] - Factors with the best performance in the liquidity 1500 stock pool this week include the correlation between intraday volatility and trading volume (2.27%), the proportion of downside volatility (1.80%), and the P/B ratio factor (1.51%) [16] - Factors with the worst performance in the liquidity 1500 stock pool this week include single-quarter EPS (-1.36%), standardized unexpected income (-1.29%), and the 5-day reversal (-1.25%) [16] Major Factor Performance - In the overall market stock pool this week, the momentum factor achieved a positive return of 0.43%, indicating a momentum effect in the market [18] - The Beta factor, market capitalization factor, and non-linear market capitalization factor achieved negative returns of -1.50%, -0.91%, and -0.54%, respectively, indicating a small-cap style in the market [18] Industry Factor Performance - This week, fundamental factors showed varied performance across industries. The net asset growth rate factor, net profit growth rate factor, net asset per share factor, and operating profit per share TTM factor consistently achieved positive returns in the non-bank financial industry [22] - Among valuation factors, the BP factor and EP factor consistently achieved positive returns in the home appliances, comprehensive, and non-bank financial industries [22] - The residual volatility factor and liquidity factor showed significant positive returns in the coal industry [22] - In terms of market capitalization style, the food and beverage, beauty care, and banking industries showed a significant large-cap style this week [22] Factor Backtesting Results CSI 300 Stock Pool - Standard deviation of 5-day trading volume: 2.12% (1 week), 3.52% (1 month), 8.21% (1 year), 19.07% (10 years) [13] - Proportion of downside volatility: 1.78% (1 week), 0.41% (1 month), -5.44% (1 year), 25.57% (10 years) [13] - 5-day exponential moving average of trading volume: 1.35% (1 week), 1.19% (1 month), 3.70% (1 year), 5.13% (10 years) [13] CSI 500 Stock Pool - Inverse of P/E ratio TTM: 3.99% (1 week), 4.80% (1 month), -5.74% (1 year), 48.40% (10 years) [15] - Proportion of downside volatility: 3.80% (1 week), 1.56% (1 month), -3.09% (1 year), 107.51% (10 years) [15] - P/E ratio factor: 3.17% (1 week), 2.58% (1 month), -4.94% (1 year), 26.11% (10 years) [15] Liquidity 1500 Stock Pool - Correlation between intraday volatility and trading volume: 2.27% (1 week), 3.18% (1 month), 2.59% (1 year), 152.82% (10 years) [17] - Proportion of downside volatility: 1.80% (1 week), 2.97% (1 month), 5.48% (1 year), 114.63% (10 years) [17] - P/B ratio factor: 1.51% (1 week), 3.69% (1 month), -5.28% (1 year), 74.59% (10 years) [17] Portfolio Tracking PB-ROE-50 Portfolio Performance - This week, the PB-ROE-50 portfolio achieved positive excess returns in the CSI 500 stock pool: 0.15% [24] - In the CSI 800 stock pool, the PB-ROE-50 portfolio achieved excess returns of -1.50% [24] - In the overall market stock pool, the PB-ROE-50 portfolio achieved excess returns of -2.52% [24] Institutional Research Portfolio Tracking - This week, the public fund research stock selection strategy and private fund research tracking strategy achieved negative excess returns relative to the CSI 800: -0.94% and -4.83%, respectively [26] Block Trade Portfolio Tracking - This week, the block trade portfolio achieved positive excess returns relative to the CSI All Share Index: 1.56% [30] Private Placement Portfolio Tracking - This week, the private placement portfolio achieved positive excess returns relative to the CSI All Share Index: 1.86% [36]

Group 1 - The small-cap index has shown strong performance recently, with the CSI 2000 Enhanced ETF (159552) achieving a cumulative increase of 53.95% year-to-date, outperforming the benchmark index by 21.74% [1] - As of August 21, the cumulative net inflow for the year has exceeded 1.15 billion, with a year-to-date scale growth of 7871.11%, reaching approximately 1.3 billion, marking a historical high [1] Group 2 - Analysts highlight the ongoing interest in small-cap stocks, supported by several factors: the current market risk appetite is rising, making growth-oriented small-cap stocks a focal point [3] - The overall valuation of small-cap stocks has not yet reached historical highs, indicating that relative value and growth premium logic still have room to grow [3] - Quantitative enhancement strategies have proven effective in managing volatility and consistently generating excess returns, as evidenced by the performance of the Zhao Shang Fund 1000 ETF Enhanced (159680) and the CSI 2000 Enhanced ETF (159552), both of which have outperformed their benchmarks since inception [3] - Continuous net inflows into related ETFs indicate strong liquidity and leading scale in the market [3]