Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Last week (August 25 - August 29, 2025), the A - share market continued to oscillate upwards, with the Wande All - A Index rising 1.90%. The technology track was the focus of investors, and the ChiNext Index and ChiNext 50 rose 7.74% and 9.27% respectively, while the Science and Technology Innovation 50 recorded a 7.49% increase [2][11]. - The "AI+" market is currently concentrated on upstream infrastructure - type hardware. With reference to the experience of the mobile Internet, the technology bull market follows a rotation rhythm from hardware to software and from stories to performance. In the future, domestic AI applications will shift from overseas - benchmarked speculation to statement - end growth verification [4][12]. - The mid - year reports of A - share listed companies in 2025 are basically disclosed. The cumulative year - on - year growth rates of the net profit attributable to the parent of all A - shares and all A - shares excluding finance and petrochemicals in 2025H1 are 3.36% and 4.27% respectively, and the performance bottom - warming trend is still on the way [4][13]. Summary by Relevant Catalogs 1. Weekly Market Observation 1.1. Equity Market Review and Observation - **Market Performance**: The A - share market continued to oscillate upwards last week. The Shanghai Composite Index approached 3900 points on Monday, adjusted in the middle of the week, and showed an upward trend again on Thursday and Friday. The Wande All - A Index rose 1.90%, and the ChiNext Index, ChiNext 50, and Science and Technology Innovation 50 had significant increases. The communication and electronics sectors led the gains, while the Wande Micro - Cap Index fell 3.78% and the CSI Dividend Index declined 1.10%. The market trading was active, with the trading volume exceeding 2 trillion yuan for 13 consecutive trading days, and the average daily trading volume was 2983.1 billion yuan, an increase of 395.651 billion yuan from the previous week. The average daily turnover rate was 2.579%, an increase of 0.26 percentage points from the previous week [11]. - **"AI+" Market**: The current "AI+" market is concentrated on upstream infrastructure - type hardware. Overseas - chain optical modules and PCBs started in June, and domestic computing power began to make up for the increase in mid - August. With reference to the mobile Internet experience, the technology bull market has a rotation rhythm. The North American AI application is booming, and in the future, domestic AI applications will shift to statement - end growth verification. On August 26, 2025, the State Council issued an opinion, marking the acceleration of China's AI application under policy promotion [4][12]. - **Full A Mid - year Report Disclosure**: The mid - year reports of A - share listed companies in 2025 are basically disclosed. The cumulative year - on - year growth rates of the net profit attributable to the parent of all A - shares and all A - shares excluding finance and petrochemicals in 2025H1 are 3.36% and 4.27% respectively, down 0.83% and 2.39% from 2025Q1. The technology sector has a relatively high marginal improvement in performance, while the upstream resource sector is under pressure [4][13]. - **Consumer Electronics**: Mobile phones are still the most mainstream hardware for users to interact with AI. Since 2025, more AI consumer hardware has tried to become an extension of mobile phones. In the long run, the interaction paradigm of AI hardware is expected to evolve towards "senselessness" [4]. 1.2. Public Offering Fund Market Dynamics - As of the end of July 2025, there were 164 public offering fund management institutions in China, including 149 fund management companies and 15 asset management institutions with public offering qualifications, managing a total net asset value of 35.08 trillion yuan. In July, the net values of stock and hybrid funds increased by 4.07% and 3.76% respectively month - on - month, while the shares decreased by 0.33% and 1.22% respectively. The decrease in the shares of equity - containing funds was due to some holders taking profits [5][14]. 2. Active Equity Fund Index Performance Tracking 2.1. Active Stock Fund Preferred Index - **Index Positioning**: Each period selects 15 funds with equal - weight allocation. The core positions select active equity funds based on performance competitiveness and style stability in value, balanced, and growth styles, and the styles are roughly balanced according to the style distribution of the CSI Active Stock - type Fund Index [16]. - **Performance**: It rose 4.20% last week and has recorded a cumulative excess return of 13.01% since its establishment [6]. 2.2. Value Stock Fund Preferred Index - **Index Positioning**: It includes deep - value and quality - value styles. It selects 10 funds with deep - value, quality - value, and balanced - value styles based on multi - period style division [16]. - **Performance**: It rose 0.95% last week and has recorded a cumulative excess return of - 0.18% since its establishment [6]. 2.3. Balanced Stock Fund Preferred Index - **Index Positioning**: Balanced - style fund managers balance the valuation and growth of individual stocks and are diversified in industries. It selects 10 funds with relatively balanced and value - growth styles based on multi - period style division [21]. - **Performance**: It rose 2.80% last week and has recorded a cumulative excess return of 7.70% since its establishment [6]. 2.4. Growth Stock Fund Preferred Index - **Index Positioning**: It aims to seize the opportunities of performance and valuation double - click of high - growth companies and find "dark horses" in high - potential fields. It selects 10 funds with active - growth, quality - growth, and balanced - growth styles based on multi - period style division [22]. - **Performance**: It rose 5.69% last week and has recorded a cumulative excess return of 17.45% since its establishment [6]. 2.5. Pharmaceutical Stock Fund Preferred Index - **Index Positioning**: It classifies funds according to the intersection market - value proportion of fund equity holdings and the constituent stocks of the representative index (CITIC Pharmaceutical). It constructs an evaluation system in the samples that meet the industry theme, and selects 15 funds to form the index [26]. - **Performance**: It fell 1.86% last week and has recorded a cumulative excess return of 21.90% since its establishment [6]. 2.6. Consumption Stock Fund Preferred Index - **Index Positioning**: It classifies funds according to the intersection market - value proportion of fund equity holdings and the constituent stocks of representative indices (CITIC Automobile, Home Appliances, etc.). It constructs an evaluation system in the samples that meet the industry theme, and selects 10 funds to form the index [28]. - **Performance**: It rose 0.82% last week and has recorded a cumulative excess return of 16.06% since its establishment [6]. 2.7. Technology Stock Fund Preferred Index - **Index Positioning**: It classifies funds according to the intersection market - value proportion of fund equity holdings and the constituent stocks of representative indices (CITIC Electronics, Communication, etc.). It constructs an evaluation system in the samples that meet the industry theme, and selects 10 funds to form the index [31]. - **Performance**: It rose 5.42% last week and has recorded a cumulative excess return of 18.93% since its establishment [6]. 2.8. High - end Manufacturing Stock Fund Preferred Index - **Index Positioning**: It classifies funds according to the intersection market - value proportion of fund equity holdings and the constituent stocks of representative indices (CITIC Construction, Light Industry Manufacturing, etc.). It constructs an evaluation system in the samples that meet the industry theme, and selects 10 funds to form the index [34]. - **Performance**: It rose 2.00% last week and has recorded a cumulative excess return of - 8.14% since its establishment [6]. 2.9. Cyclical Stock Fund Preferred Index - **Index Positioning**: It classifies funds according to the intersection market - value proportion of fund equity holdings and the constituent stocks of representative indices (CITIC Petroleum and Petrochemicals, Coal, etc.). It constructs an evaluation system in the samples that meet the industry theme, and selects 5 funds to form the index [37]. - **Performance**: It rose 1.33% last week and has recorded a cumulative excess return of - 2.55% since its establishment [6].

Core Viewpoint - Yongying Fund has announced the public offering of its new fund "Yongying Pioneer Semiconductor Smart Selection" from September 1 to September 10, 2025, managed by Zhang Haixiao, marking the second fund launched by him in a month [1] Fund Management Overview - Zhang Haixiao currently manages three products at Yongying Fund, with a total management scale of 2.452 billion yuan, where "Yongying Semiconductor Industry Smart Selection" accounts for 2.252 billion yuan, representing the majority of his managed assets [3] - The other two funds managed by Zhang include "Yongying Resource Smart Selection," which was established on August 21, 2025, with a scale of 16 million yuan, and "Yongying Quality Life," which has seen a decline in recent quarters, managing 184 million yuan [3] Performance Metrics - "Yongying Semiconductor Industry Smart Selection" has achieved a return of 59.20% since its inception, with an annualized return of 22.90% and a ranking of 185 out of 3660 in its category [4] - The fund's year-to-date return is 56.28%, significantly outperforming its benchmark return of 28.27% and the CSI 300 index return of 14.28% [9] - The fund's top ten holdings include companies in the semiconductor industry, with a concentration ratio of 85.63% in stock market value, which is notably higher than the average of 45.76% for similar funds [9] Fund Growth and Market Conditions - The fund's share volume has seen explosive growth, increasing 12.51 times in the third quarter, reaching 1.879 billion shares by June 30, 2025, following a market reversal since the third quarter of the previous year [12] - Zhang Haixiao's aggressive investment style has coincided with a bull market in technology stocks, contributing to substantial returns for the fund [12] Historical Performance and Challenges - Despite recent successes, "Yongying Semiconductor Industry Smart Selection" has faced challenges in previous years, underperforming its benchmark in 2023 and 2024, with a maximum drawdown of -45.02% since inception [14][15] - The fund's performance history indicates significant volatility, raising concerns about risk management and investment strategy effectiveness [21]

Core Viewpoint - The significant financial turnaround of Cambricon Technologies, which reported a substantial increase in revenue and profit, has positively impacted the stock market, particularly in the semiconductor sector. Group 1: Financial Performance - In the first half of 2025, Cambricon achieved revenue of 2.881 billion yuan, a year-on-year increase of 4300% [1] - The net profit attributable to shareholders was 1.038 billion yuan, compared to a loss of 533 million yuan in the same period last year [1] - The net cash flow from operating activities improved to 911 million yuan, a significant recovery from a negative 631 million yuan in the previous year [1] Group 2: Inventory and Future Growth - As of the first half of 2025, Cambricon's inventory balance reached 2.69 billion yuan, a 51.64% increase from the end of the previous year, accounting for over 30% of total assets [2] - The increase in inventory and prepaid accounts, totaling 828 million yuan, indicates confidence in future bulk shipments and production expansion [2] - Market estimates suggest that Cambricon's Q3 revenue could exceed 2 billion yuan, with a potential total revenue nearing 8 billion yuan for the year [2] Group 3: Market Position and Valuation - Cambricon's stock price reached 1329 yuan, approaching the highest price in the A-share market, with Goldman Sachs raising its target price to 1835 yuan [3] - The semiconductor sector is expected to see upward adjustments in valuations, driven by Cambricon's performance, which serves as a benchmark for the industry [3] - The domestic AI chip market is projected to grow significantly, with a focus on domestic production and safety, indicating a strong growth trajectory for Cambricon and similar companies [4] Group 4: Industry Trends - The domestic capital expenditure for computing power is in the hundreds of billions, with a potential 50% localization requirement, ensuring market growth [4] - The global AI chip market is expected to reach $92 billion by 2025, with China accounting for approximately 30% of this market [4] - The semiconductor industry has shown high elasticity, with the CSI Semiconductor Industry Index rising 182% since 2016, outperforming other indices [4]

Group 1 - The core viewpoint is that the Hong Kong stock market is transforming into a global technology capital hub, driven by a surge in technology company listings and significant capital inflows [1] - The Hong Kong Technology ETF (513020) has seen a nearly 1.8% increase, with net capital inflows for four consecutive trading days [1] - CITIC Securities indicates that the Hong Kong market has developed a complete financial system, with a significant increase in the weight of the technology sector [1] Group 2 - The total market capitalization of the Hong Kong technology sector has reached 6.29 trillion HKD, with over 600 billion HKD of net inflows from southbound funds this year [1] - The Hong Kong Technology ETF tracks the Hong Kong Stock Connect Technology Index (931573), which covers high-tech sectors such as information technology and healthcare [1] - The market is expected to enter a technology bull market over the next three years, benefiting from global re-evaluation of Chinese assets and policy support [1]

Core Viewpoint - The technology-driven bull market is the main theme of the current revaluation of Chinese assets, emphasizing the importance of technological breakthroughs [1][16]. Group 1: Market Outlook - The current market is expected to enter a phase of oscillation and adjustment after the initial stage of the bull market, which is seen as a short-term cooling period [1][35]. - The Hang Seng Technology Index is anticipated to lead the revaluation of Chinese assets, outperforming both the S&P 500 and the Hang Seng Index in 2025 and 2026 [1][35]. - Investors should focus on high-quality companies with strong fundamentals to achieve growth during the bull market [1][49]. Group 2: Economic and Policy Context - The key variables for the macroeconomic outlook in 2025 are not extreme fluctuations but rather reform and technological innovation [2][17]. - The recovery of the real estate sector and the stabilization of rental yields in major cities indicate a potential stabilization of property prices by 2025 [19][20]. - The rise of AI technology is expected to enhance efficiency across various industries, contributing to a structural shift in the economy [21][30]. Group 3: Investment Strategy - Investors are advised to adopt a long-term perspective and rebuild valuation frameworks in light of AI advancements, moving away from traditional static metrics [24][28]. - The focus should be on the penetration rate of AI technology, capital expenditure, and the application prospects in various industries [28][29]. - The bull market is characterized by a need to identify the most promising companies within the AI ecosystem, which may yield significant returns [46][48]. Group 4: Sector-Specific Insights - Companies in the technology sector, particularly those represented by "ATM" (Alibaba, Tencent, Xiaomi), are expected to benefit from the AI wave and should be prioritized for investment [3][44]. - The integration of AI into various sectors, including biomedicine, education, and finance, presents new opportunities for growth [46][47]. - The new generation of consumers, particularly those born in the 90s and 00s, will drive rapid growth in emerging consumption sectors [23].

Group 1 - The market driven by DeepSeek has shown strong upward momentum even after more than a month since its initial surge [1] - There is a prevailing belief that a bull market guarantees profits, yet many investors still experience losses during such periods [3] - The collective intelligence of millions of members can help navigate the complexities of investment, despite individual mistakes [4] Group 2 - The upcoming training camp on March 9 aims to equip investors with knowledge on macro trends, industry cycles, and company valuation [5] - The phrase "speed for the lone traveler, distance for the collective" emphasizes the importance of collaboration in investment [6] - An invitation is extended to investors to join the training camp, highlighting its potential benefits [7]

Core Viewpoint - The article emphasizes the establishment of a primary upward trend in the Chinese stock market, driven by a "technology bull market" and supported by domestic demand, despite potential fluctuations and challenges ahead [1][9][10]. Group 1: Market Overview - The Chinese stock market's primary upward trend was confirmed after experiencing some fluctuations, with a recommendation to maintain a bullish mindset and progress with the market [1][9]. - The "technology bull market" is identified as the backbone of the current market rally, initiated after the "924" meeting in 2024, with significant contributions from AI breakthroughs and advancements in robotics [10][12]. - Historical comparisons are drawn to previous market phases, such as the Internet 1.0 and mobile Internet eras, highlighting the importance of technological penetration rates in driving market trends [2][11][13]. Group 2: Investment Strategy - The current market turbulence is viewed as an opportunity to buy "core technology assets," particularly during short-term adjustments [5][17]. - Investors are encouraged to adopt a contrarian approach, capitalizing on short-term market fluctuations to acquire AI-related core assets, which are expected to lead the market in the coming years [6][24]. - The article suggests focusing on companies that embrace AI technology, particularly internet platforms and robotics, as they are likely to benefit from the ongoing technological advancements [24][25]. Group 3: Policy and Economic Analysis - Recent market fluctuations are attributed to external factors, such as trade risks associated with the Trump administration, and the need for investors to adapt to these uncertainties [16][19]. - The Chinese government is expected to implement policies aimed at expanding domestic demand and enhancing technological innovation, which will support the ongoing "technology bull market" [19][21]. - The analysis of the U.S. interest rate environment indicates a potential decline in U.S. Treasury yields, which could positively impact the Hong Kong stock market [21][22]. Group 4: Sector-Specific Opportunities - The article identifies specific sectors poised for growth, including AI technology, renewable energy, and consumer sectors, suggesting that these areas will benefit from policy support and technological advancements [24][26]. - Emphasis is placed on the importance of selecting stocks with strong fundamentals and growth potential, particularly those that can leverage AI technology for operational efficiency [25][26].