Core Viewpoint - The A-share market is experiencing a rare "overall volume contraction, local volume explosion" pattern, with major indices rising but overall trading volume failing to reach 3 trillion, indicating a cautious investor sentiment [1] Group 1: Fund Heavyweight Volume Dynamics - The surge in volume for fund-heavy sectors is primarily driven by passive allocation rather than active bullish sentiment, reflecting a forced build-up of positions due to bank savings diversion [3][4] - Recent declines in one-year bank deposit rates below 1.5% have led to a significant shift of funds into equity funds, with new equity fund issuance reaching 52 billion, a 58% increase week-on-week [3] - The regulatory requirement for equity funds to maintain at least 80% stock positions forces fund managers to buy into high liquidity stocks, even if valuations are historically high, resulting in concentrated buying and increased trading volume [4] Group 2: Historical Context of Volume Surges - Comparing the current volume surge to that of October 8 last year reveals differences in fund characteristics, suggesting potential variations in future market behavior [5] - The previous surge was driven by active funds chasing gains, leading to a significant pullback of over 12% in the following 30 trading days, while the current surge is mainly from passive funds, which may provide short-term support [5] - However, the lack of a "low-cost safety net" in current holdings raises concerns about potential sell-offs if negative macro data or liquidity tightening occurs [5] Group 3: Options Market Signals - The implied volatility of options for the ChiNext ETF and STAR 50 ETF has decreased by 5%-8% despite the indices reaching new highs, indicating a divergence and suggesting limited short-term upside [6][7] - This decline in implied volatility reflects institutional hedging behavior, with over 20% of active equity funds utilizing options to mitigate risks, thereby suppressing expectations for further significant gains [7] Group 4: Investment Implications - The current market fragmentation highlights its fragility, necessitating attention to two key signals: the progress of new fund allocations and the trend in implied volatility [7] - If new funds approach an average position of 75%, it may indicate reduced passive support, leading to potential market consolidation and profit-taking by institutions [7] - Continuous low implied volatility below the historical 25th percentile suggests a contraction in market volatility expectations, likely indicating a phase of high-level consolidation [7]

Group 1 - As of August 22, a total of 1,254 stocks in the A-share and Hong Kong markets reached new highs, with 234 stocks hitting historical peaks [1] - Among the 1,254 stocks, 828 are among the top ten holdings of public funds at the end of Q2, accounting for 66.03% [1] - Since Q2, 110 stocks have seen a cumulative increase of over 100%, with 67 of these being heavily held by funds, also exceeding 60% [1] Group 2 - Public funds have successfully identified popular stocks in emerging sectors such as New Yisheng and Cambrian, as well as strong performers like Shutai Shen, Honghe Technology, and Hengbao Co., Ltd [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Market Review: The overall market showed a volatile upward trend in July. The Shanghai Composite Index rose 3.7%, and the average return of active equity - oriented funds was 4.6%, with institutions slightly outperforming the market. Trading volume increased significantly, with the average daily trading volume of the whole A - shares in July reaching 1.6 trillion yuan (compared to 1.4 trillion yuan from January to June this year). The cycle + growth sectors led, and the dumbbell configuration adjusted. In terms of style, small - cap growth continued to dominate. Fund heavy - holding stocks and the non - changing - face sub - new stock portfolio significantly outperformed, while strong - performing stocks and the quantitative sub - new stock portfolio significantly underperformed [4]. - Market Outlook: Wait for the second half of the physical re - inflation. Focus on ten - bagger stocks, quantitative sub - new stocks, and reversal strategies. The report adheres to the view that before the return of physical inflation, the stock market will be the carrier of surplus liquidity. As inflation returns with the progress of "anti - involution", the bull market may gradually evolve from the first half of financial re - inflation to the second half of physical re - inflation. Some positive changes have occurred, such as the year - on - year growth of M1 (old caliber) turning positive for two consecutive months. If the decline of PPI significantly narrows in the next 6 - 12 months, the repair of corporate EPS will become a new driving force. In the current stage of continuous monetary easing but without confirmed EPS repair, it is recommended to focus on the combination of ten - bagger stocks, quantitative sub - new stocks, and reversal strategies [4]. 3. Summary by Relevant Catalogs 3.1 Growth - type Strategies 3.1.1 Sub - new Stock Combinations - Non - changing - face Sub - new Stock Combination: If a stock's ROE and net profit growth rate attributable to the parent company in the year of listing and the following year are higher than the average of the three years before listing, it is considered that the stock's fundamentals continue to perform well. Since 2010, it has achieved an excess return of 311% compared to the Wind All - A Index, and an excess return of 6% in the past month. The screening criteria include that the net profit growth rate of the year of listing and the following year is greater than the average of the three years before listing, and the ROE of the year of listing and the following year is greater than the average ROE of the three years before listing multiplied by an adjustment coefficient. The stocks in the current pool with high monthly gains include Yifang Biotech and Yahong Pharmaceutical [16][17]. - Quantitative Sub - new Stock Combination: Through quantitative back - testing, key factors affecting the performance of sub - new stocks are found. Since 2010, it has achieved an excess return of 324% compared to the Wind All - A Index, and an excess return of - 3% in the past month. The screening criteria include ROE (TTM) in the top 40%, net profit growth rate attributable to the parent company in the top 40%, sales gross margin (TTM) in the top 40%, sales expense ratio (TTM) in the top 40%, and total market capitalization less than 20 billion yuan. The stocks in the current pool with high monthly gains include Tiancheng Technology and Zhongrun Optics [21][22]. 3.1.2 Ten - bagger Stock Combinations - Ten - bagger Stock Individual Stock Combination: Special genes of ten - bagger stocks are searched from five perspectives: price movement, company, performance, valuation, and industry, and screening criteria for potential ten - bagger stocks in the future are constructed accordingly. Since 2010, it has achieved an excess return of 176% compared to the Wind All - A Index, and no excess return in the past month. The screening criteria involve multiple aspects such as maximum increase, management compensation, major shareholder's pledge ratio, financial indicators, and market capitalization. The stocks in the current pool with high monthly gains include Boke New Materials and Jack Co., Ltd. [28][29]. - Ten - bagger Stock Fund Manager Combination: Starting from the perspective of fund managers, their aesthetic preferences and trading behaviors are analyzed to screen out 20 potential ten - bagger stocks. Since 2010, it has achieved an excess return of 44% compared to the Wind All - A Index, and an excess return of - 1% in the past month. The screening criteria are based on the frequency of ten - bagger stocks held by funds in the past 10 quarters. The stocks in the current pool with high monthly gains include Dongshan Precision and Wuxi AppTec [36][37]. 3.2 Value - type Strategies 3.2.1 High - dividend Stock Combination - The high - dividend strategy is a relatively mature strategy overseas. A high - dividend stock combination constructed in the CSI 300 index has also achieved significant excess returns. Since 2010, it has achieved an excess return of 133% compared to the Wind All - A Index, and an excess return of - 2% in the past month. The screening criteria are to select the top 20 stocks with the highest dividend yield from the CSI 300 index constituents, and the portfolio is re - balanced on April 30 every year. The stocks in the current pool with high monthly gains include Lu'an Environmental Energy and Shanxi Coking Coal [46]. 3.2.2 High Free - cash - flow Return Combination - In the era of a stock economy, companies shift from pursuing scale to pursuing profit and cash flow. A combination is constructed from the perspectives of "high free - cash - flow return" and "low investment and high profit distribution to shareholders". Since 2010, it has achieved an excess return of 243% compared to the Wind All - A Index, and an excess return of - 2% in the past month. The screening criteria involve free - cash - flow return, dividend + share - repurchase ratio, capital expenditure ratio, and net working - capital increase ratio. The stocks in the current pool with high monthly gains include Yabao Pharmaceutical and Shantui Construction Machinery [54][55]. 3.2.3 PEG and PB - ROE Combinations - PEG Combination: The PEG strategy comprehensively considers the matching of valuation and growth. Since 2010, it has achieved an excess return of 120% compared to the Wind All - A Index, and an excess return of 2% in the past month. The screening criteria include that the stock's PE/G is lower than the median of its Shenwan primary industry, positive PE, positive net profit growth rate in the past three years and the next two years, low standard deviation of net profit growth rate, and more than one - year listing time. The stocks in the current pool with high monthly gains include Tianfu Communication and Tebao Bio - Pharm [65]. - PB - ROE Combination: The PB - ROE strategy also considers the matching of valuation and profitability, and is more applicable to value - type stocks in cyclical and financial real - estate industries. Since 2010, it has achieved an excess return of 63% compared to the Wind All - A Index, and an excess return of 2% in the past month. The screening criteria include that the stock's PB/ROE is lower than the median of its Shenwan primary industry, excluding stocks with negative ROE. The stocks in the current pool with high monthly gains include Shengde Xintai and New China Life Insurance [72][73]. 3.3 Momentum - type Strategies 3.3.1 Buying Strong - performing Stocks Combination - The strategy of buying strong - performing stocks is based on the idea of trend investment. Since 2010, it has achieved an excess return of - 155% compared to the Wind All - A Index, and an excess return of - 4% in the past month. The screening criteria are to select the top 100 stocks with the highest monthly gains and exclude ST stocks, and the portfolio is re - balanced on the first trading day of each month. The stocks with high monthly gains in July include GuangShengTang and Shangwei New Materials [81][82]. 3.3.2 Reversal Strategy Combination - The reversal strategy aims to bet on the inflection point of individual stocks, based on the mean - reversion concept. Since 2010, it has achieved an excess return of 190% compared to the Wind All - A Index, and an excess return of - 2% in the past month. The screening criteria are to select the top 100 stocks with the highest monthly losses and exclude ST stocks, and the portfolio is re - balanced on the first trading day of each month. The stocks with high monthly losses in July include Yuandao Communication and Shanda Electric Power [92][93]. 3.3.3 Buying Fund Heavy - holding Stocks Combination - The idea of buying fund heavy - holding stocks is to "copy the homework", aiming to build a safety margin by following the market consensus in a weak market. Since 2010, it has achieved an excess return of - 44% compared to the Wind All - A Index, and an excess return of 7% in the past month. The screening criteria are to select the top 20 stocks held by three types of active equity - oriented funds, and the portfolio is re - balanced at the end of each quarter. The stocks in the current pool with high monthly gains include New H3C Technologies and Zhongji Innolight [100][101].

Core Viewpoint - The report analyzes the heavy holdings of active equity funds in the non-ferrous metals industry for Q2 2025, highlighting a slight increase in the sector's representation within the overall fund holdings [3][4]. Group 1: Industry Overview - In Q2 2025, the market value of heavy holdings in the non-ferrous metals sector by active equity funds reached approximately 70.4 billion, accounting for 4.29% of total fund heavy holdings, which is an increase of 0.07 percentage points from Q1 2025 [4]. Group 2: Top Heavy Holdings - The top ten heavy holdings in the non-ferrous metals sector include Zijin Mining (22.8 billion), Shandong Gold (4.4 billion), Zhongjin Gold (3 billion), Zijin Mining (H) (2.7 billion), Hunan Gold (2.5 billion), Yun Aluminum (2.2 billion), Shanjin International (2.1 billion), Luoyang Molybdenum (2.1 billion), Chifeng Gold (2 billion), and Huayou Cobalt (1.95 billion) [5]. Group 3: Increased Holdings - The increase in holdings is primarily concentrated in the rare earth and small metal sectors, with significant increases in stocks such as Guangsheng Nonferrous (largest increase in rare earth), Haotong Technology (platinum, palladium, rhodium recovery), and Xinyi Silver Tin (silver, tin) [6]. Group 4: Decreased Holdings - The decrease in holdings is mainly observed in aluminum, gold, and certain processing stocks, with the largest reductions seen in Xibu Materials (titanium), Shenhuo Co. (aluminum), and Huafeng Aluminum (aluminum processing) [7][8].

Group 1 - In the second quarter, a total of 2950 stocks appeared on the fund's heavy holdings list, with 126 stocks having a fund holding ratio exceeding 10% [1] - Among the stocks with a fund holding ratio over 10%, 17 stocks had a holding ratio exceeding 20%, while 109 stocks had a holding ratio between 10% and 20% [1] - The stock with the highest fund holding ratio is Ninebot Company, with 216 funds collectively holding 195 million shares, accounting for 35.24% of the circulating shares [1] Group 2 - A total of 44 stocks are held by more than 100 funds, while 32 stocks are held by 50 to 99 funds [2] - The stock with the most fund holders is CATL, with 1775 funds holding a total of 14.49% of the shares [2] - In terms of valuation, 41 stocks with high fund holdings have a price-to-earnings ratio below 30, with the lowest being Gujing Distillery at 7.90 times [2] Group 3 - 24 stocks have announced performance forecasts for the first half of the year, with 23 expecting profit increases, the highest being Huaxia Airlines with an expected increase of 875.10% [3] - The stocks with the largest increase in fund holdings include Puyuan Precision Electronics, Huahong Semiconductor, and Yuanjie Technology, with increases of 409.08%, 354.96%, and 317.64% respectively [1][3] - The industry distribution of high fund holdings is mainly concentrated in electronics, biomedicine, and the automotive sector, with 32, 21, and 12 stocks respectively [2]

Group 1: Company Leadership Changes - Hai Fu Tong Fund announced the resignation of Chairman Lu Ying and the appointment of Xie Lebin as the new Chairman, effective April 21 [1] - Xie Lebin has extensive experience in the financial sector, having held various senior positions at Guotai Junan Securities and other firms [1] - Under Lu Ying's leadership, Hai Fu Tong Fund's management scale grew from 158.4 billion to 181.96 billion, an increase of over 14% [1] Group 2: Fund Management Scale Rankings - The latest rankings of public fund companies show that the top ten by management scale include E Fund, Huaxia Fund, and GF Fund [2] - E Fund leads with a total management scale of 1.95 trillion, and a non-money market fund scale of 1.31 trillion as of the end of Q1 [2] Group 3: Fund Holdings and Performance - Tencent Holdings has become the top heavy stock among public funds, with a market value of 69.384 billion held by 1,186 funds as of Q1 [3] - Other significant holdings include Ningde Times and Guizhou Moutai, with market values of 55.369 billion and 37.862 billion respectively [3] - In Q1 2025, public funds achieved a total profit of 251.747 billion, with mixed and stock funds contributing significantly [4] Group 4: Fund Manager Insights - Zhang Kun emphasized the importance of focusing on companies with strong business models and competitive advantages, rather than macroeconomic concerns [6] - He noted that the stock returns should align with the companies' return on equity (ROE) levels over the long term [6] Group 5: Fund Manager Appointments - Rongtong Fund announced the appointment of Li Ruihong as a new fund manager for the Rongtong New Consumption Flexible Allocation Mixed Fund [7] - Li Ruihong has 15 years of experience in the securities industry, previously working at various research departments [7] Group 6: Market Performance - On April 23, the market showed mixed results, with the Shanghai Composite Index down 0.1% and the Shenzhen Component Index up 0.67% [8] - The total trading volume reached 1.23 trillion, an increase of 139.7 billion from the previous trading day [8] - Technology-related ETFs in the Hong Kong market saw significant gains, while gold stock ETFs experienced declines [9][10]

Core Viewpoint - The report highlights the significant changes in fund holdings during the first quarter, with notable increases in positions for certain stocks and reductions in others, indicating shifting investment strategies among public funds. Group 1: Top Holdings - The top three heavy-weight stocks held by public funds at the end of Q1 are Ningde Times, Kweichow Moutai, and Tencent Holdings, with total market values of 146.78 billion, 141.49 billion, and 84.89 billion respectively [2][4]. - A total of 1861 funds hold Ningde Times, 1192 funds hold Kweichow Moutai, and 1361 funds hold Tencent Holdings [2][4]. Group 2: Changes in Holdings - Funds significantly reduced their holdings in Ningde Times while increasing their positions in Tencent Holdings during Q1 [2][4]. - Major stocks that saw increased positions include Chipone Technology, Lanke Technology, Alibaba-W, and SMIC [5][6]. Group 3: Notable Increases - The top stocks with increased holdings in A-shares include BYD (17.36 billion), Zijin Mining (13.37 billion), Chipone Technology (6.93 billion), and Lanke Technology (3.01 billion) [6]. - In overseas stocks, the most notable increases were in Alibaba-W (3.41 billion), SMIC (1.59 billion), and XPeng Motors (1.42 billion) [8]. Group 4: Notable Decreases - Major stocks that experienced reductions in holdings include CITIC Securities, Wuliangye, NVIDIA, and Tesla [9][10]. - The largest reductions in overseas stocks were in NVIDIA (-1.57 billion), Broadcom (-1.36 billion), and Tesla (-1.24 billion) [10]. Group 5: Fund Types and Trends - As of the end of Q1, several gold ETFs were heavily held by funds, with significant holdings in the Huaan Gold ETF and Bosera Gold ETF [11][13]. - Despite a decrease in shares held in gold ETFs, the overall market value of these holdings increased due to rising gold prices [11].