Core Viewpoint - The article discusses the current volatility in the U.S. stock market and the strategies investors are considering to hedge against potential shocks, particularly in light of uncertainties surrounding Trump's policies [1]. Group 1: Market Volatility and Investor Strategies - Despite a calming of volatility in April, investors are preparing for sudden market shocks, similar to those experienced in the past [1]. - Derivatives strategists suggest that while periodic option selling from income-focused ETFs may suppress overall volatility, short-term shocks will continue to occur [1]. - Investors are weighing their preferences between Gamma and Vega strategies for hedging against market fluctuations [1][2]. Group 2: Gamma vs. Vega Strategies - Gamma represents a strategy focused on short-term options to capitalize on intraday volatility, while Vega pertains to long-term contracts benefiting from market turbulence [2]. - Data from Bloomberg indicates that short-term options were the biggest winners in April, but if the market retraces to previous lows, extreme volatility may not be repeated [2]. - Analysts expect a gradual repricing of the market driven by weak future guidance, indicating a low-volatility bear market [2]. Group 3: Alternative Hedging Tools - VKO (Volatility Knock Out) options are gaining popularity as a speculative method to short stocks or volatility, offering a cheaper alternative to standard options [3]. - Hedge funds have actively engaged in VKO during recent market declines to secure better entry points, emphasizing the importance of timing in establishing positions [3]. - Quantitative Investment Strategies (QIS) are also being considered for hedging, with a mixed approach potentially being more effective given the varied performance of these strategies during April's volatility [3]. Group 4: Cost Trends and Market Outlook - Trading costs have returned to levels seen at the end of March, providing a favorable environment for hedgers [5]. - Analysts predict that earnings downgrades and valuation compression will lead to a gradual decline in U.S. stocks, testing lows expected in 2025 [5]. - The article notes that while sudden news shocks previously defined market declines, the next downturn is anticipated to be a slow erosion rather than a sharp sell-off [5].

Core Viewpoint - The Shanghai Securities Regulatory Bureau has issued a notice to enhance the compliance and operational standards of private fund managers in the region, emphasizing the need for self-assessment and rectification amidst increasing regulatory scrutiny [1][2][3] Regulatory Requirements - Private fund managers in Shanghai are required to organize collective learning sessions on relevant laws and regulations, including the Securities Investment Fund Law and the Private Investment Fund Supervision Regulations [2] - Participation in compliance training is mandated, with the Shanghai Securities Regulatory Bureau providing guidance and resources for private fund managers to improve their operational compliance [2] - A self-assessment and rectification process must be conducted by private fund managers, focusing on their operational status, fund performance, and any unregistered partnerships [2][3] Self-Assessment Focus Areas - The notice outlines specific self-assessment requirements for different types of private funds, including checks on investment management practices, compliance with fund contracts, and the handling of fund assets [4][5] - For equity investment funds, managers must verify the use of professional custodians and assess potential conflicts of interest and fund pooling practices [4] - For quantitative strategy funds, self-assessment must include evaluations of risk management, model testing, and the adequacy of IT systems [5] Market Activity - Despite stricter regulations, the enthusiasm for new private fund products remains high, with a nearly 40% year-on-year increase in the number of private fund product registrations in 2024 [1][6] - In April, 638 private securities managers registered a total of 1,170 private securities products, marking a 12.18% increase from March and the highest monthly registration in nearly two years [6][7] - Equity strategy products accounted for over 64% of the total registrations in April, indicating a renewed investor interest in stock assets [6][7]

Group 1 - The private equity market in A-shares is experiencing increased enthusiasm for allocation despite market fluctuations, with a notable rise in the number of private securities products registered in April [1] - In April, 638 private equity managers registered a total of 1,170 private securities products, marking a 12.18% increase from March's 1,043 products, and this is the first time in 2024 that the monthly registration exceeded 1,000 for two consecutive months [1] - Stock strategies dominate the registration, accounting for over 60% of the total, with 752 stock strategy products registered in April, representing 64.27% of the total [1] Group 2 - Quantitative private equity products also saw significant activity, with 545 quantitative securities products registered in April, making up 46.58% of the total registered products, indicating a strong preference for quantitative investment strategies [2] - Among the quantitative products, stock strategy products accounted for 380, or 69.72%, while futures and derivatives strategies had 84 products, representing 15.41% [2] - The confidence in the market is reflected in the active registration of private products, with firms expressing optimism about the future of the Chinese economy and potential revaluation of Chinese assets [2] Group 3 - The recovery of the stock market from tariff impacts and the gradual increase in index levels are key factors influencing future market trends, alongside domestic policy developments [3] - High tariffs are expected to significantly raise inflation levels in the U.S., increasing the likelihood of a dollar depreciation and a potential recession [3] - The combination of tariff improvements and supportive domestic policies is seen as a strong foundation for the stock market [3]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The report provides several ETF strategy indices constructed with the help of ETFs and tracks the performance and positions of these indices on a weekly basis. These indices aim to obtain excess returns relative to the market through different strategies and models [11]. 3. Summary by Relevant Catalogs 3.1 ETF Strategy Index Tracking - **ETF Strategy Index Last Week's Performance**: - **HuaBao Research Large - Small Cap Rotation ETF Strategy Index**: Last week's index return was 0.46%, the benchmark was CSI 800 with a return of 0.59%, and the excess return was -0.14% [12]. - **HuaBao Research Quantitative Fire - Wheel ETF Strategy Index**: The index return was 0.75%, the benchmark was CSI 800 with a return of 0.59%, and the excess return was 0.15% [12]. - **HuaBao Research Quantitative Balance Art ETF Strategy Index**: The index return was 0.28%, the benchmark was SSE 300 with a return of 0.38%, and the excess return was -0.11% [12]. - **HuaBao Research SmartBeta Enhanced ETF Strategy Index**: The index return was 0.28%, the benchmark was CSI 800 with a return of 0.59%, and the excess return was -0.32% [12]. - **HuaBao Research Hot - Spot Tracking ETF Strategy Index**: The index return was 1.55%, the benchmark was CSI All - Share Index with a return of 1.10%, and the excess return was 0.45% [12]. - **HuaBao Research Bond ETF Duration Strategy Index**: The index return was -0.10%, the benchmark was ChinaBond Aggregate Index with a return of -0.08%, and the excess return was -0.02% [12]. 3.2 HuaBao Research Large - Small Cap 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 indices in the next week and determines positions accordingly to obtain excess returns [13]. - **Performance**: As of April 25, 2025, the excess return since 2024 was 16.35%, the excess return in the recent month was 0.58%, and the excess return in the recent week was -0.14%. The position was 100% in the SSE 300 ETF [13][16]. 3.3 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 [16]. - **Performance**: As of April 25, 2025, the excess return since 2024 was 18.06%, the excess return in the recent month was 3.02%, and the excess return in the recent week was -0.32%. The position was 100% in the Dividend Low - Volatility ETF [16][21]. 3.4 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 congestion signals to prompt industry risks and multi - dimensionally digs out potential sectors to obtain excess returns [20]. - **Performance**: As of April 25, 2025, the excess return since 2024 was 0.74%, the excess return in the recent month was 0.92%, and the excess return in the recent week was 0.15%. The positions included 21.03% in the Agriculture ETF and 18.93% in the Home Appliance ETF [20][23]. 3.5 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 construct a quantitative timing system for trend judgment of the equity market. It also builds a prediction model for the large - small cap style of the market to adjust the position distribution in the equity market and comprehensively obtains excess returns through timing and rotation [23]. - **Performance**: As of April 25, 2025, the excess return since 2024 was 1.99%, the excess return in the recent month was 2.40%, and the excess return in the recent week was -0.11%. The positions included various ETFs such as the CSI 1000 ETF, Enhanced 500 ETF, etc. [23][26]. 3.6 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 views, policy and regulatory changes, and historical deduction. It constructs an ETF portfolio that can capture market hot - spots in a timely manner to provide investors with references for short - term market trends and help them make more informed investment decisions [26]. - **Performance**: As of April 25, 2025, the excess return in the recent month was 2.74%, and the excess return in the recent week was 0.45%. The positions included the Real Estate ETF, Hong Kong Stock Consumption ETF, etc. [26][30]. 3.7 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 position of long - duration bonds in the bond investment portfolio to improve the long - term return and drawdown control ability of the portfolio [30]. - **Performance**: As of April 25, 2025, the excess return in the recent month was 0.17%, and the excess return in the recent week was -0.02%. The positions included the 10 - Year Treasury Bond ETF, Policy Financial Bond ETF, etc. [30][34].

Investment Rating - The report indicates a positive outlook for stocks over commodities and bonds, suggesting a preference for equities in the current market environment [5]. Core Insights - Recent market style rotation has shifted towards small-cap and growth styles, influenced by various macroeconomic factors and market sentiment [3]. - The industry rotation model recommends sectors such as steel, media, integrated communications, retail, and pharmaceuticals, based on liquidity and research performance [4]. - Active quantitative stock selection strategies have shown varied performance, with small-cap strategies outperforming others [6][10]. Summary by Sections Market Style Rotation - The current market style is leaning towards small-cap growth, with macro indicators slightly favoring small caps and market sentiment benefiting growth styles [3]. - Key drivers include a decline in new investor numbers and macroeconomic indicators [3]. Recommended Industries - The recommended sectors for March include steel, media, integrated communications, retail, and pharmaceuticals, selected based on an optimized industry rotation model [4]. - Media, integrated communications, and pharmaceuticals excel in liquidity, while steel scores high in research performance [4]. Asset Allocation Views - The report suggests a hierarchy of asset allocation: stocks are preferred over commodities, which in turn are preferred over bonds [5]. - The overall sentiment towards stocks is optimistic, supported by macroeconomic indicators, although caution is advised due to potential resistance in major indices [5]. Active Quantitative Stock Selection Strategies - The small-cap digging strategy has shown the best performance, with a 9.9% return in February, significantly outperforming small-cap indices [6]. - The investment behavior quality evaluation strategy has also performed well, yielding a 9.9% return in February and over 10% year-to-date [7][8]. Growth Strategy Performance - The ChatGPTBoost growth selection strategy yielded a 4.5% return in February, with a slight excess return over equity fund indices [9]. - The strategy focuses on identifying stocks with improving profitability and sustainable ROE [9]. Future Strategy Recommendations - Future recommendations emphasize the high valuation and market participation of small-cap and growth strategies, suggesting continued focus on these areas [11]. - Specific strategies to watch include small-cap digging and XGBoost for growth selection [11].