Core Viewpoint - The active equity funds, considered as "smart money" in the market, have shown a shift in manager sentiment towards a more optimistic outlook, despite experiencing a decline in both share and scale due to ongoing redemption pressures [1][6]. Performance Summary - In Q2, active equity funds outperformed passive equity funds, with the mixed equity fund index rising by 3.06%, surpassing the CSI 300 index by approximately 1.81 percentage points [3]. - The average return for various active equity fund types exceeded 2%, with the best-performing fund, Changcheng Pharmaceutical Industry Select A, achieving a return of 35.86% [4][3]. - Despite good performance, over 60% of active equity funds still recorded positive returns, but the average return decreased compared to Q1 [3][6]. Scale and Redemption - The total scale of active equity funds decreased to 3.27 trillion yuan, a reduction of 366.62 billion yuan from the previous quarter [8]. - The number of active equity funds increased slightly to 4,190, but the overall market share continued to decline, reflecting a cautious investor sentiment [9][8]. - The gap between active and passive fund scales widened, with passive index funds reaching 3.60 trillion yuan [9]. Stock Positioning - Active equity funds increased their stock positions, with an overall weighted position of 88.08%, marking a continuous rise over four quarters [12]. - The allocation to small-cap stocks increased, while the allocation to large-cap stocks decreased, with the proportion of holdings in the CSI 500 reaching its highest point since 2018 [13][12]. Sector Allocation - The main sectors for active equity fund investments included electronics (19.01%), pharmaceuticals (11.01%), and power equipment & new energy (8.89%), with notable increases in communication and banking sectors [14]. - The allocation to communication increased by 2.60%, while the allocation to food and beverage decreased by 2.14% [14]. Individual Stock Holdings - The top ten holdings in active equity funds included Ningde Times, Kweichow Moutai, and Midea Group, with significant increases in holdings for stocks like Zhongji Xuchuang and Xinyi Semiconductor [15]. - The funds reduced their positions in major consumer stocks such as BYD and Kweichow Moutai, indicating a shift towards technology and growth-oriented stocks [15][16].

Market Overview - A-shares experienced high volatility last week, with the Shanghai Composite Index briefly surpassing 3600 points before a slight pullback. Major indices posted positive returns, with a notable focus on structural characteristics. The Sci-Tech Innovation 50 Index led with a 4.63% increase, reflecting strong market interest in technology innovation sectors such as artificial intelligence and quantum technology [2] - The Shanghai Composite Index rose by 1.67%, the Shenzhen Index increased by 2.33%, and the ChiNext Index gained 2.76% during the week [2] - Among industry sectors, 87% achieved positive returns, with construction materials, coal, and steel performing particularly well, rising by 8.20%, 7.98%, and 7.67% respectively. Conversely, utilities, telecommunications, and banking sectors showed weakness, declining by 0.27%, 0.77%, and 2.87% respectively [2] Fund Issuance - A total of 35 funds were issued last week, including 23 equity funds, 3 mixed funds, 7 bond funds, and 2 QDII funds, with a total issuance of 27.604 billion units [2][4] Fund Performance - The Wind All Fund Index rose by 1.02% last week, with the ordinary equity fund index increasing by 1.77% and the mixed equity fund index rising by 1.81%. The bond fund index, however, saw a slight decline of 0.10% [3][7] - The performance of various fund categories showed that the ordinary equity fund index and the mixed equity fund index had year-to-date returns of 14.91% and 14.49% respectively, indicating strong performance in the equity space [7] Global Asset Review - Global asset performance showed significant divergence, with developed market equities generally rising due to favorable conditions from anticipated interest rate cuts by the Federal Reserve and positive corporate earnings reports. Emerging markets displayed mixed results, with the Hang Seng Index and Ho Chi Minh Index rebounding strongly, while the German DAX Index faced challenges from high energy costs and weak manufacturing [5] - In the commodities market, coking coal prices surged due to supply constraints, while oil prices faced downward pressure from demand concerns. Natural gas prices plummeted by 11.67% [5] Domestic Bond Market Review - The bond market exhibited a clear "see-saw" effect with the national bond futures index declining by 0.58%. Short-term funding spreads showed little change, while medium to long-term rates remained low [11]

Market Overview - The A-share market showed significant differentiation last week (May 12 to May 16), with large-cap stocks performing well while small-cap and Sci-Tech Innovation Board faced slight pressure. The Shanghai 50 and CSI 300 rose by 1.22% and 1.12% respectively, indicating the defensive advantage of undervalued blue-chip stocks. The ChiNext 50 increased by 2.00%, reflecting the attractiveness of large-cap growth sectors. Conversely, the Sci-Tech 50 fell by 1.10%, possibly due to underwhelming earnings from some semiconductor companies and capital diversion to other tech sectors [2][12]. Industry Performance - Last week, 65% of sectors achieved positive returns, with beauty care, non-bank financials, and automotive sectors performing relatively well, rising by 3.08%, 2.49%, and 2.40% respectively. In contrast, media, defense, and computer sectors showed significant weakness, declining by 0.77%, 1.18%, and 1.26% respectively [2][14]. Fund Issuance - A total of 23 funds were issued last week, including 12 equity funds, 5 mixed funds, 5 bond funds, and 1 fund of funds (FOF), with a total issuance of 24.004 billion units [2][20]. Fund Performance - The Wind China Fund Total Index rose by 0.17% last week. The ordinary equity fund index increased by 0.26%, while the mixed equity fund index rose by 0.30%. The bond fund index saw a slight decline of 0.05% [3][10]. Global Asset Review - Global markets exhibited significant divergence last week, with equity markets generally rising, driven by technology stocks. The S&P 500 and Nasdaq increased by 4.54% and 6.60% respectively, propelled by better-than-expected earnings from AI leaders like Nvidia. European markets also showed resilience, with the German DAX and French CAC both rising over 0.8%, reflecting enhanced economic resilience in the Eurozone. The Hang Seng Index in the Asia-Pacific region rose by 2.09%, influenced by positive signals from US-China trade talks [5][6]. Domestic Bond Market Review - Last week, the 10-year and 30-year government bond futures fell by 0.51% and 1.17% respectively, indicating upward pressure on yields. The short-term funding spread (R007-DR007) showed no significant compression compared to the previous week, while medium to long-term rates remained low [15][19].