Core Viewpoint - The technology sector is undergoing a correction due to external sentiment, internal structural differentiation, and high valuation digestion, but the AI-driven technological revolution continues to deepen, making the tech sector a long-term core investment theme [1][5]. Group 1: Investment Opportunities - Investors are encouraged to focus on "big tech" players with strong investment capabilities that cover multiple sub-sectors within the technology space [1][5]. - The upcoming fund, Invesco Great Wall Xin You Growth, managed by Feng Bingli, aims to leverage his expertise in the big tech sector to enhance investment stability through a combination of industry trends and individual stock research [1][5]. Group 2: Fund Performance - Feng Bingli's previous fund, Invesco Great Wall Quality Evergreen A, has shown impressive returns of 63.97%, 184.86%, and 124.9% over the past year, two years, and since his management began, respectively, outperforming benchmarks and indices [2][6]. - The fund has received a three-year five-star rating from Morningstar, Guotai Junan, and Galaxy Securities, indicating its strong performance relative to peers [2][6]. Group 3: Investment Strategy - Feng Bingli employs a mature investment system that emphasizes industry diversification and focuses on companies with core barriers, long-term operational vision, and potential for non-linear growth [2][6]. - The investment strategy includes a balanced approach across various sectors, including hard tech, soft tech, media, internet, high-end manufacturing, new energy vehicles, and military technology [2][6][7]. Group 4: Market Outlook - The outlook for the equity market in 2026 is optimistic, with a focus on companies with clear profit growth [4][9]. - The first quarter is seen as a suitable entry point for investments, as many companies will provide clearer operational guidance during this period [4][9]. - Key areas of interest include computing power, semiconductors, internet, new consumption in Hong Kong, innovative pharmaceuticals, and consumer electronics [4][9].

Core Viewpoint - The capital market in 2025 was driven by clear industry trends and rapid market rotations, with active equity funds demonstrating strong value capture capabilities, contributing over 2.6 trillion yuan in profits to investors, with active equity funds alone contributing approximately 1.1 trillion yuan [1] Group 1: Performance of Active Equity Funds - Active equity funds are valued for their ability to generate excess returns and convert them into real profits for holders, exemplified by Xingzheng Global Fund, which generated 40.94 billion yuan in profits for holders in 2025 [2] - Over the past decade, Xingzheng Global Fund's 28 active equity products averaged over 2 billion yuan in profits per product, with Xingquan Heiyi leading with 13.056 billion yuan in profits [3][4] - Xingzheng Global Fund's active equity funds established for over ten years achieved an average annualized return of 12.58%, providing long-term returns across market cycles [4] Group 2: Fund Manager Performance - Fund managers at Xingzheng Global Fund managing over 20 billion yuan have shown strong alpha generation capabilities, with their longest-managed products achieving excess returns over 1, 3, and 5 years [6][7] - In 2025, 26 out of 27 active equity funds managed by Xingzheng Global Fund outperformed their benchmarks, indicating a broad-based ability to generate excess returns across the platform [8] Group 3: Investment Methodology and Organizational Structure - The profit generation is supported by a systematic investment methodology and organizational structure, with flagship products providing long-term value and a diverse range of funds contributing to profit stability [10][11] - The investment approach emphasizes broad market selection and balanced allocation, avoiding reliance on single industries or styles, which helps manage large-scale funds effectively [12][13] - The platform's research and investment system ensures a high success rate in generating profits, with a focus on deep research and cross-group collaboration to uncover investment opportunities [14][15] Group 4: Long-term Value and Client Focus - The investment philosophy is rooted in a long-term value perspective, with a focus on creating sustainable returns for clients, supported by a robust assessment framework for fund managers [15][16] - The organizational culture promotes resilience and reduces dependency on individual star fund managers, ensuring stable investment capability output [16][17]

Core Insights - The investment strategy focuses on selecting valuable small-cap stocks from the bottom up, avoiding sector bets and market rotations [1] - The current market volatility is attributed to high trading volumes and the overvaluation of certain popular sectors, leading to potential market corrections [2] - Small-cap stocks are viewed as a potential "safe haven" due to lower trading heat and the possibility of attracting more funds as market liquidity expands [2] Group 1: Investment Strategy - The company has launched small-cap strategy funds, emphasizing deep research and continuous tracking to select long-term growth potential stocks [3] - The strategy incorporates a contrarian approach, avoiding market hotspots and focusing on reasonably valued companies with good asset quality for long-term investment [3] - The core advantages of the strategy include long-term value assessment, effective volatility management, and differentiation in product offerings for investors [3] Group 2: Market Outlook - The market is expected to experience a divergence of opportunities and risks throughout the year, with small-cap stocks potentially offering excess return opportunities in the first half [2] - The investment team employs a combination of subjective research and quantitative models to evaluate companies across various dimensions, including business prospects and financial stability [4] - The company aims to provide high risk-return ratios and long-term stable excess returns by focusing on small-cap stocks as a strategic breakthrough [4]

Group 1 - The report indicates that the performance forecast for A-shares shows a continuation of the improvement trend observed since the Q3 2025 report, with a significant increase in the number and proportion of companies expecting profit growth or turning losses into profits [3][12][13] - The number of companies predicting profit increases (597 companies, 21.2%) and those turning losses into profits (361 companies, 12.8%) has notably risen, while the number of companies predicting losses has decreased [13][14] - However, the number of companies continuing to report losses (960 companies, 34.1%) has increased compared to the previous fiscal year, indicating that the improvement in performance is uneven across the market [12][13] Group 2 - The report highlights that the A-share market's response to performance forecasts is not solely based on the positive or negative categorization of forecasts, as the probability of excess returns does not significantly differ across these categories [20][22] - The analysis from 2019 to 2024 shows that companies with loss forecasts have a 30-day success rate of 42.8% and a 60-day success rate of 44.7%, while the success rates for other categories are relatively close, with profit increase categories exceeding 50% [20][22] - The report suggests that the market does not simply react to the positive or negative classifications of performance forecasts, indicating a more complex relationship between forecasts and stock price movements [20][22] Group 3 - The report introduces a new dimension by comparing the net profit growth rates in performance forecasts with market consensus expectations, indicating that exceeding expectations can lead to higher excess returns [30][33] - The analysis shows that stocks exceeding expectations have a higher probability of generating excess returns compared to those meeting or falling short of expectations, reinforcing the importance of performance forecasts in investment strategies [30][33] - The report emphasizes that a strategy based on performance forecasts should consider both the positive/negative classifications and whether the forecasts exceed market expectations for optimal results [35][37] Group 4 - The report outlines a method for constructing investment portfolios based on performance forecasts, utilizing a clustering approach to identify stocks with stable excess returns [39][40] - The clustering results indicate that certain categories, such as "profit increase" and "slight increase," show promising success rates and odds for both 30-day and 60-day time frames, providing a basis for short-term and long-term stock selection [41][42] - Historical backtesting from 2019 to 2024 demonstrates that portfolios constructed using this method can achieve stable excess returns across varying market conditions, indicating its robustness [47][49]

Core Viewpoint - The article discusses the current market volatility and suggests that instead of chasing rapidly changing investment trends, investors should consider index-enhanced funds as a pragmatic strategy to achieve returns that exceed market averages [2]. Group 1: Index-Enhanced Funds - Index-enhanced funds are designed to actively manage investments while passively tracking an index, aiming to achieve both beta returns from the index and alpha returns through enhancement strategies [3]. - When selecting index-enhanced funds, it is crucial to evaluate their historical net asset value performance since inception, as past performance can provide insights into potential future returns [5]. - The article emphasizes the importance of understanding the enhancement strategy before making a selection, as any strategy may experience periods of underperformance [7]. Group 2: Performance Metrics - The example of the Zhongtai CSI 300 Index Enhanced Fund illustrates that since its inception on April 1, 2020, the A share's net asset value growth rate reached 69.63%, significantly outperforming the benchmark growth rate of 24.85% by 44.78% [5][9]. - The fund consistently generated excess returns relative to its benchmark across all complete half-year periods since its establishment, indicating stable performance in various market conditions [5]. - The article suggests that a fund's ability to generate consistent small victories over time is more valuable than sporadic outstanding performance in a single year [5].

Core Insights - The demand for precise and efficient investment tools is increasing among investors, driven by the high-quality development of public funds and profound market changes [1][2] - Enhanced index funds (指增基金) are rapidly growing, with fundraising expected to exceed 100 billion yuan by 2025, surpassing the total of the previous three years [1][3] Group 1: Growth and Popularity - Enhanced index funds are shedding their "niche" label and becoming mainstream investment options for investors [2] - By the end of 2025, the number of enhanced index funds reached 476, with total fundraising of 100.45 billion yuan, including 186 newly established funds in 2025 [3] - As of January 31, 2026, 10 new enhanced index funds have been launched, exceeding the same period in 2025 [3] Group 2: Competitive Advantages - Enhanced index funds combine passive and active investment strategies, aiming for stable excess returns while closely following market trends [3][4] - Over 80% of enhanced index funds achieved annual excess returns, with an average net value growth rate of 32.44% and an average excess return rate of 5.39% by the end of 2025 [4] - The flexibility in product development and operation of enhanced index funds allows smaller institutions to fill significant gaps in index product lines [4] Group 3: Challenges and Solutions - Despite rapid growth, enhanced index funds face challenges in maintaining stable excess returns, which is a common concern in the industry [6][7] - The complexity of quantitative strategies and performance attribution makes it difficult for ordinary investors to understand enhanced index funds quickly [7] - High management costs compared to ETFs may hinder competitive advantages in fee structures [7] Group 4: Future Prospects - Enhanced index funds are continuously upgrading through product innovation, model iteration, team collaboration, and ecosystem building [8] - The recent release of guidelines for performance benchmarks aligns with the systematic enhancement strategies of enhanced index funds, highlighting their value [9] - Future developments will focus on product innovation, strategy optimization, and expanding scenarios to cater to institutional investors and retail education [10]

Core Viewpoint - The domestic quantitative trading market in China is expected to reach a historical high of over 2 trillion yuan by 2025, despite regulatory constraints on frequency [2][3]. Group 1: Market Size and Growth - The domestic quantitative private equity management scale is projected to exceed 1.5 trillion yuan in 2025, with public funds managing over 400 billion yuan in quantitative assets, leading to a total market size surpassing 2 trillion yuan [2]. - Compared to the same period in 2024, the total scale of quantitative management is conservatively estimated to increase by 700 billion yuan, driven by significant returns of at least 50% for existing clients [2][3]. - By the end of Q3 2025, the public quantitative scale is expected to exceed 400 billion yuan, and the private quantitative management scale is around 1.49 trillion yuan, indicating a robust growth trajectory [3]. Group 2: Industry Trends and Strategies - The rapid growth of quantitative private equity is attributed to increased market efficiency, demand for stable returns, and the performance of quantitative strategies in volatile markets [3][4]. - Industry players are implementing measures to control scale, such as limiting fundraising and increasing investment thresholds, to balance strategy effectiveness and growth [4][5]. - The industry is anticipated to transition from "scale expansion" to "scale management" in 2026, focusing on strategy diversification to achieve sustainable excess returns [5]. Group 3: Performance and Returns - In 2025, the average return of nearly a thousand index-enhanced strategy products reached 45.08%, with an average excess return of 16.75%, showcasing strong alpha generation capabilities [6]. - The performance of small-cap index-enhanced products, particularly the CSI 1000 index, was notably strong, with average returns of 49.78% and a high percentage of positive excess return products [6][7]. - The high turnover rate and daily trading volume in the A-share market in 2025 are favorable for the performance of quantitative strategies [6]. Group 4: Investor Behavior and Risk Management - Despite proactive scale control by institutions, there is concern over investors' aggressive capital allocation due to high returns from quantitative strategies [6][8]. - Investment professionals emphasize the importance of guiding clients to understand the relationship between returns and risks, advocating for a long-term investment perspective [8]. - Recommendations include implementing mechanisms to reduce short-term redemption impacts and focusing on risk control to avoid excessive pursuit of short-term performance [8].

Core Viewpoint - The article emphasizes the "return of active equity" since mid-2025, highlighting that active equity funds have significantly outperformed the broad market indices, with a return of 33.19% compared to the 17.66% of the CSI 300 index in the previous year. Active equity funds continue to outperform in 2026, raising questions about their ability to create value in a high-quality development phase of the asset management industry [1]. Group 1: Event Highlights - The event titled "Return of Active Equity" featured top fund managers and investment directors, focusing on practical insights rather than lengthy discussions [3]. - The agenda included discussions on building teams for excess returns, the significance of growth in the A-share market, and a special session with foreign fund managers discussing growth versus value [3][5]. Group 2: Insights from Fund Managers - Wang Qisen, Vice President and Chief Investment Officer of Huashan Fund, discussed the characteristics of successful fund managers, emphasizing internal training and the emergence of new talent over time [5]. - The article highlights the long-term performance of Cao Jin from Fortune Fund, who has consistently managed the small-cap fund since 2015, showcasing his ability to adapt to market trends and maintain low volatility [11][12]. Group 3: Foreign Fund Manager Perspectives - The roundtable featured managers from Allianz, Morgan Asset Management, and Schroders, discussing diverse investment opportunities and the effectiveness of active management in the Chinese market [16][17]. - Both Allianz and Schroders have recently launched active equity products that have shown over 50% performance growth in their first year, demonstrating the potential of foreign funds in A-shares [17][18].

Report Summary 1. Investment Ratings No investment ratings for the industry are provided in the report. 2. Core Viewpoints The report presents several ETF strategy indices constructed with the help of ETFs, which can convert quantitative models or subjective views into practical investment strategies. The performance and positions of these indices are tracked on a weekly basis [12]. 3. Summary by Directory 1. ETF Strategy Index Tracking - **ETF Strategy Index Last Week's Performance**: - **Huabao Research Size Rotation ETF Strategy Index**: Last week's index return was 7.47%, the benchmark was CSI 800 with a return of 4.18%, and the excess return was 3.30% [13]. - **Huabao Research SmartBeta Enhanced ETF Strategy Index**: Last week's index return was 1.97%, the benchmark was CSI 800 with a return of 4.18%, and the excess return was -2.21% [13]. - **Huabao Research Quantitative Fire - Wheel ETF Strategy Index**: Last week's index return was 3.81%, the benchmark was CSI 800 with a return of 4.18%, and the excess return was -0.36% [13]. - **Huabao Research Quantitative Balance Art ETF Strategy Index**: Last week's index return was 1.73%, the benchmark was SSE 300 with a return of 2.79%, and the excess return was -1.06% [13]. - **Huabao Research Hot - Spot Tracking ETF Strategy Index**: Last week's index return was 6.24%, the benchmark was CSI All - Share with a return of 5.04%, and the excess return was 1.20% [13]. - **Huabao Research Bond ETF Duration Strategy Index**: Last week's index return was -0.12%, the benchmark was ChinaBond Aggregate Index with a return of -0.23%, and the excess return was 0.11% [13]. 1.1 Huabao Research Size Rotation ETF Strategy Index - **Strategy Principle**: It uses multi - dimensional technical indicator factors and a machine - learning model to predict the return difference between the Shenwan Large - Cap Index and the Shenwan Small - Cap Index. The model outputs signals weekly to predict the strength of the index in the next week and determines positions accordingly to obtain excess returns relative to the market [14]. - **Performance**: As of January 9, 2026, the excess return since 2024 was 25.26%, the excess return in the recent month was 2.56%, and the excess return in the recent week was 3.30% [14]. - **Positions**: As of January 9, 2026, it held 50% of CSI 500ETF (code: 159922.SZ) and 50% of CSI 1000ETF (code: 512100.SH) [18]. 1.2 Huabao Research SmartBeta Enhanced ETF Strategy Index - **Strategy Principle**: It uses price - volume indicators to time self - built Barra factors and maps timing signals to ETFs based on the exposure of ETFs to 9 major Barra factors to obtain returns exceeding the market. The selected ETFs cover mainstream broad - based index ETFs and some style and strategy ETFs [18]. - **Performance**: As of January 9, 2026, the excess return since 2024 was 18.76%, the excess return in the recent month was -3.73%, and the excess return in the recent week was -2.21% [18]. - **Positions**: As of January 9, 2026, it held 25.21% of High - Dividend ETF (code: 159207.SZ), 25.13% of Shenzhen Dividend ETF (code: 159905.SZ), 24.98% of Free Cash Flow ETF800 (code: 563580.SH), and 24.68% of Dividend Low - Volatility 100ETF (code: 515100.SH) [21]. 1.3 Huabao Research Quantitative Fire - Wheel ETF Strategy Index - **Strategy Principle**: It starts from a multi - factor perspective, including the grasp of medium - and long - term fundamental dimensions, the tracking of short - term market trends, and the analysis of the behaviors of various market participants. It uses valuation and crowding signals to prompt industry risks and multi - dimensionally digs out potential sectors to obtain excess returns relative to the market [21]. - **Performance**: As of January 9, 2026, the excess return since 2024 was 39.31%, the excess return in the recent month was 2.75%, and the excess return in the recent week was -0.36% [21]. 1.4 Huabao Research Quantitative Balance Art ETF Strategy Index - **Strategy Principle**: It uses a multi - factor system including economic fundamentals, liquidity, technical aspects, and investor behavior factors to build a quantitative timing system for trend judgment of the equity market. It establishes a prediction model for the market's large - and small - cap styles to adjust the position distribution of the equity market and comprehensively obtains excess returns relative to the market through timing and rotation [25]. - **Performance**: As of January 9, 2026, the excess return since 2024 was -12.27%, the excess return in the recent month was -1.07%, and the excess return in the recent week was -1.06% [25]. - **Positions**: As of January 9, 2026, it held 20.50% of Non - Ferrous Metals ETF (code: 512400.SH), 20.11% of Chemical ETF (code: 159870.SZ), 20.06% of Securities and Insurance ETF E Fund (code: 512070.SH), 19.88% of Steel ETF (code: 515210.SH), and 19.46% of Oil and Gas ETF (code: 159697.SZ) [26]. 1.5 Huabao Research Hot - Spot Tracking ETF Strategy Index - **Strategy Principle**: It tracks and mines hot - spot index target products in a timely manner based on strategies such as market sentiment analysis, industry major event tracking, investor sentiment and professional opinions, policy and regulatory changes, and historical deduction. It constructs an ETF portfolio that can capture market hot - spots in a timely manner, providing investors with references for short - term market trends and helping them make more informed investment decisions [28]. - **Performance**: As of January 9, 2026, the excess return in the recent month was 1.08%, and the excess return in the recent week was 1.20% [30]. - **Positions**: As of January 9, 2026, it held 40.04% of Non - Ferrous Metals 50ETF (code: 159652.SZ), 22.32% of Hong Kong Stock Dividend ETF Bosera (code: 513690.SH), 19.90% of Hong Kong Stock Connect Pharmaceutical E Fund ETF (code: 513200.SH), and 17.74% of Short - Term Financing ETF (code: 511360.SH) [31]. 1.6 Huabao Research Bond ETF Duration Strategy Index - **Strategy Principle**: It uses bond market liquidity indicators and price - volume indicators to screen effective timing factors and predicts bond yields through machine - learning methods. When the expected yield is lower than a certain threshold, it reduces the long - duration positions in the bond investment portfolio to improve the long - term return and drawdown control ability of the portfolio [31]. - **Performance**: As of January 9, 2026, the excess return in the recent month was 0.15%, and the excess return in the recent week was 0.11% [32]. - **Positions**: As of January 9, 2026, it held 50.00% of 10 - Year Treasury Bond ETF (code: 511260.SH), 25.00% of Treasury Bond ETF 5 - 10 Years (code: 511020.SH), and 25.00% of Policy Financial Bond ETF (code: 511520.SH) [34].

Core Insights - In 2025, the FOF (Fund of Funds) market saw improved performance, with median returns for top-performing products reaching 12.89% and an arithmetic average of 11.83% [1] - A significant disparity in returns was noted, with five FOF products achieving total returns exceeding 50% during the year [1] - The standout performer was Guotai Optimal Navigation One-Year Holding, which led with an annual return of 66.14% [1] Performance Analysis - Several FOF products, including E Fund Advantage Return A and Guotai Industry Rotation A, also reported annual returns above 50%, indicating strong performance in equity markets [1] - High-performing FOFs demonstrated a clear thematic focus in their investment strategies rather than a uniform approach [1] Investment Strategies - Certain FOFs concentrated on distinctive index funds to amplify the market elasticity of specific assets, benefiting from strong trends in precious metals [2] - Others, like E Fund Advantage Return, focused on actively managed equity funds, particularly in technology sectors, showcasing a strategy to achieve excess returns through active management [2] Market Context - The overall recovery in FOF performance in 2025 was closely linked to improvements in the equity market environment, with a stabilization and rebound in large-cap equities supporting the net asset value of underlying FOF assets [2] - The clear structural trends in the market allowed FOFs to effectively leverage their asset allocation flexibility, resulting in notable returns for some products [2]