Core Viewpoint - The article discusses the performance and investment opportunities in the North Exchange, particularly focusing on the North 50 Index and related investment products, highlighting the challenges and potential strategies for investors in the current market environment [1][2][4]. Group 1: North 50 Index Performance - The North 50 Index has shown strong performance, with a recent increase of 5.01% over the last seven trading days after a brief correction [1]. - The North 50 Index is noted as having the best upward elasticity among large-cap indices, making it difficult for individual investors to outperform it [2]. Group 2: Investment Products Analysis - There are currently 27 North 50 index funds available, with older funds (launched before September 24, 2022) showing an average growth rate of 122%, while newer funds have underperformed relative to the index [2][3]. - The maximum drawdown for these funds is generally around 30%, which is slightly better than the North 50's drawdown of 38.63% [3]. Group 3: Active Management Funds - Among actively managed funds, the "Hua Xia North Exchange Innovation Small and Medium Enterprises Selected Two-Year Open Mixed Fund" has shown significant excess returns with a drawdown controlled under 20% [4]. - The "CITIC Construction Investment North Exchange Selected Two-Year Open Mixed A" fund also demonstrated excellent excess returns and drawdown ratios [4]. Group 4: Market Conditions and Recommendations - Current market conditions suggest that both public active products and index products are not ideal for investing in the North Exchange, but index products may serve as a reasonable option if investors have confidence in the index itself [5]. - For investors lacking judgment capabilities regarding the North Exchange, seeking private equity products may offer more flexible terms compared to public offerings [5].

Investment Rating - The report maintains a positive outlook on the industry, suggesting a "Buy" rating for specific stocks and highlighting the overall investment value of the North Exchange market in 2025 [4][5][37]. Core Insights - The North Exchange 50 Index showed a significant increase of 2.82% as of May 30, 2025, closing at 1408.68 points, outperforming other indices such as the Shanghai and Shenzhen 300, which declined by 1.08% [10][21]. - The liquidity in the North Exchange has decreased, with an average daily trading volume of 254.40 billion, down 29.23% from the previous week [23]. - The report identifies key sectors with strong performance, including oil and petrochemicals, computers, communications, national defense, and pharmaceuticals, while sectors like beauty care and automotive showed declines [21][22]. Summary by Sections North Exchange Market Overview - As of May 30, 2025, there are 266 constituent stocks in the North Exchange A-share market, with an average market capitalization of 2.991 billion [10]. - The North Exchange 50 Index has shown a year-on-year increase of 79.99% [3]. Stock and Industry Performance - In the week from May 26 to May 30, 2025, 184 stocks rose, 80 fell, and 2 remained flat, indicating a rising proportion of 69.17% [16]. - The top five performing industries during this period were oil and petrochemicals (5.28%), computers (4.78%), communications (4.77%), national defense (4.36%), and pharmaceuticals (3.84%) [21]. New Stock Updates - No new stocks were listed this week, but two companies, Shichang Co. and Zhigao Machinery, passed the review for listing [26][27]. Key Companies and Earnings Forecast - The report highlights several companies with strong earnings potential: - Tongli Co. (EPS: 1.99 for 2025E, Buy rating) - Wuxin Tunnel Equipment (EPS: 1.64 for 2025E, Buy rating) - Kaide Quartz (EPS: 1.03 for 2025E, Hold rating) - Hualing Co. (EPS: 0.34 for 2025E, Hold rating) - Hengtai Open Source (EPS: 0.22 for 2025E, Hold rating) - Tianli Composite (EPS: 1.03 for 2025E, Buy rating) [5][29].

Investment Rating - The report maintains a positive outlook on the industry, suggesting a focus on high-quality stocks with stable earnings growth and reasonable valuations, particularly in the context of the North Exchange market [8][11]. Core Insights - The North Exchange 50 Index experienced a decline of 3.68% during the week of May 19 to May 23, 2025, closing at 1370.04 points, while the average market capitalization of the 266 constituent stocks is 2.936 billion [5][20]. - The report highlights that despite short-term fluctuations, the long-term investment value of the North Exchange remains strong, with a recommendation to focus on undervalued stocks and thematic investments [8][11]. Summary by Sections 1. North Exchange Market Overview - As of May 23, 2025, the North Exchange A-share market consists of 266 stocks with an average market capitalization of 2.936 billion. The North Exchange 50 Index's performance was -3.68% for the week, compared to -0.18% for the Shanghai and Shenzhen 300 Index [5][20]. 2. Stock and Industry Performance - In the week from May 19 to May 23, 2025, 41 stocks rose, while 225 fell, resulting in a rise ratio of 15.41%, which is a decrease of 51.88 percentage points week-on-week [27]. - The top five performing industries were Environmental Protection (8.16%), Beauty Care (2.62%), Building Materials (0.97%), Light Industry Manufacturing (-0.90%), and Pharmaceutical Biology (-1.32%). The bottom five were Transportation (-20.33%), Public Utilities (-11.41%), Textiles and Apparel (-8.94%), Nonferrous Metals (-8.77%), and Communications (-7.48%) [33]. 3. Liquidity Tracking - The average daily trading volume for the North Exchange 50 was 35.949 billion, reflecting a week-on-week increase of 3.65%, with a turnover rate of 4.57% [37]. 4. New Stock Updates - No new stocks were listed during the week, but Yuli Intelligent submitted a registration for review. Next week, two companies (Shichang Co., Ltd. and Zhigao Machinery) will be reviewed, and one company (Jiaoda Tifa) will be available for subscription [42][43]. 5. Selected Announcements - Notable announcements include a capital increase by KQ Co., Ltd. to enhance business performance and a project investment by Haitai New Energy in Indonesia for solar energy production [46][47].

Investment Rating - The report maintains a positive outlook on the industry, suggesting a "Buy" rating for specific stocks and highlighting the overall investment value of the North Exchange market in 2025 [2][3]. Core Insights - The North Exchange 50 Index experienced a slight decline of 3.68% as of May 23, 2025, closing at 1370.04 points, while the average market capitalization of the 266 A-share constituent stocks is 2.936 billion [8][19]. - The report identifies key sectors with significant performance, including Environmental Protection (up 8.16%), Beauty Care (up 2.62%), and Construction Materials (up 0.97%), while sectors like Transportation and Public Utilities faced declines of -20.33% and -11.41% respectively [19][22]. - The report emphasizes the importance of focusing on companies with stable growth and reasonable valuations, recommending stocks such as Tongli Co., Ltd. and Wuxin Tunnel Equipment for their low valuations and potential benefits from infrastructure investments [2][3]. Summary by Sections North Exchange Market Overview - As of May 23, 2025, the North Exchange 50 Index showed a decline of 3.68%, while the average market capitalization of constituent stocks was 2.936 billion [8][19]. - The daily average trading volume for the North Exchange 50 was 35.949 billion, reflecting a 3.65% increase from the previous week [22]. Stock Performance - In the week from May 19 to May 23, 2025, 41 stocks rose, while 225 fell, indicating a 15.41% increase in the number of rising stocks, a decrease of 51.88% week-on-week [13][19]. Key Companies and Earnings Forecast - Recommended stocks include: - Tongli Co., Ltd. (stock code: 834599.BJ) with an EPS forecast of 1.99 for 2025 and a PE ratio of 10.66, rated as "Buy" [3]. - Wuxin Tunnel Equipment (stock code: 835174.BJ) with an EPS forecast of 1.64 for 2025 and a PE ratio of 25.16, also rated as "Buy" [3]. - Other companies such as Kaide Quartz and Hualing Co., Ltd. are rated as "Hold" with potential for growth [3]. New Stock Updates - No new stocks were listed this week, but Yuli Intelligent submitted for registration, with upcoming meetings for Shichang Co. and Zhigao Machinery [25][27].

Core Viewpoint - The North Exchange experienced significant volatility on May 22, with the North Certificate 50 Index plunging 6.15% in a single day, contrasting sharply with its previous historical high of 1500 points [1][3]. Market Performance - The North Certificate 50 Index had a year-to-date increase of 42.03% before the sudden drop, outperforming major indices like the CSI 300 [3]. - On the day of the drop, only 17 stocks rose, while over 134 stocks fell by more than 5%, with Jinbo Biological leading the decline at 14.55% [3]. - Despite the volatility, some actively managed funds performed well, with the Huaxia North Exchange Innovation Small and Medium Enterprises Select Fund achieving a year-to-date return of 78.57% [3]. Fund Management Responses - In response to the rapid market rise, several fund companies, including E Fund and GF Fund, implemented purchase limits on North Exchange-themed products, with daily subscription limits as low as 3000 yuan [2][5]. - The average price-to-earnings ratio for North Exchange stocks reached 46.46, indicating a high valuation level, prompting fund managers to limit purchases to mitigate risks [7]. Fund Performance - Leading passive funds, such as GF North Certificate 50 Component A, reported year-to-date returns exceeding 40%, with a one-year return of 103.62% [4]. - The North Certificate 50 Index fund scale grew by 22.63% year-on-year, reflecting significant inflows of passive funds [5]. Investor Behavior - Retail investors accounted for over 96% of individual investments in certain funds, indicating a strong retail presence in the North Exchange market [5]. - The current market sentiment is shifting from a broad-based rally to a more selective stock-picking approach, as investors become more cautious amid declining risk appetite [7].

Group 1 - The Beijing Stock Exchange (BSE) is experiencing a strong market performance, with the BSE 50 Index surpassing the 1500-point mark, indicating a significant upward trend [1] - Institutional investors are increasingly attracted to the BSE due to its unique market position and the scarcity of listed companies, leading to a rise in public fund allocations [1] - In the first quarter, 72 funds included BSE companies in their top ten holdings, with a notable increase in both the number and scale of funds focusing on the BSE market [2] Group 2 - The total scale of BSE-themed funds has exceeded 13 billion yuan, with both active and passive funds showing a preference for companies with low valuations and strong growth potential [2] - The BSE 50 Index fund reached a scale of 9.26 billion yuan, increasing by 1.48 billion yuan from the previous quarter [2] - Several BSE-themed funds have adjusted their subscription and redemption plans to manage scale and mitigate risks associated with heavy stock positions [4] Group 3 - New BSE-themed funds are still being launched, allowing ordinary investors to participate in BSE investments, with the Dachen BSE 50 Index fund set to be issued from May 19 to May 23 [5] - The Dachen fund aims to replicate the index with a management fee of 0.5% and a custody fee of 0.1% [5]

Group 1 - Multiple North Exchange funds have announced purchase limits due to significant net value increases, with nearly 80% of products seeing over 30% growth this year [1] - Specific funds like E Fund and Pengyang have set purchase limits at 3,000 yuan and 50,000 yuan respectively [1] - Other funds such as Fuguo and Tibet Dongcai have also implemented purchase restrictions [1] Group 2 - Four Hong Kong stock theme funds were reported on May 19, with a total of 19 funds submitted in May, covering sectors like technology, dividends, automotive, and pharmaceuticals [2] - Fund companies like Huatai-PB and Jiashi have submitted multiple products, indicating strong interest in the Hong Kong market [2] Group 3 - Public funds have invested nearly 10 billion yuan in private placements this year, with 21 public institutions participating in 31 A-share companies [3] - Haohua Technology was the most favored stock, attracting 1.628 billion yuan from three public funds [3] - Other stocks like Guolian Minsheng and Dize Pharmaceutical also received significant allocations exceeding 500 million yuan [3] Group 4 - The enthusiasm for public funds to research North Exchange companies is increasing, with over 30 institutions, including Huatai-PB, conducting recent surveys [4] - Companies like Yichang Magic Yam have also engaged in multiple investor meetings, reflecting growing interest [4] Group 5 - The public fund industry is experiencing a "retirement wave," with over 10 senior executives and research personnel retiring or nearing retirement in 2025 [5] - Notable retirements include Wu Xianling from Guohai Franklin Fund and Wu Ruoman from Xingyin Fund [6] Group 6 - Liu Gesong and Li Yuanbo have increased their stakes in Rongxin Culture, with Liu's fund holding 2.02% and Li's fund holding 0.97% of the company's total shares [7] Group 7 - On May 21, the market saw a slight increase, with the Shanghai Composite Index rising by 0.21% and the Shenzhen Component Index by 0.44%, with a total trading volume of 1.17 trillion yuan [8] - Gold-related stocks performed well, with gold ETFs showing strong gains [9] - Conversely, the S&P Consumer ETF led declines with a drop of 2.29% [10]

Group 1: Fund News - Several North Exchange funds have announced purchase limits, with the E Fund North Certificate 50 Index limiting purchases to 3,000 yuan starting May 19, and the Pengyang North Certificate 50 Index reducing the limit to 50,000 yuan from May 13 [1] - A total of 19 Hong Kong-themed funds have been reported since May, covering various sectors such as innovative drugs, cloud computing, consumption, and automobiles [1] - Public funds have invested nearly 10 billion yuan in private placements this year, with 21 public institutions participating in 31 A-share companies' private placements, totaling 9.785 billion yuan [1] Group 2: ETF Market Review - The market experienced a rise and then a pullback, with the Shanghai Composite Index increasing by 0.21%, the Shenzhen Component Index by 0.44%, and the ChiNext Index by 0.83%. The total trading volume reached 1.17 trillion yuan, an increase of 37.8 billion yuan from the previous trading day [2] - Gold-related stocks performed strongly, with gold stock ETFs rising by as much as 4.85% [2] Group 3: ETF Performance - The top-performing gold stock ETFs include: - Code 159562: Gold Stock ETF, up 4.85% to 1.557 - Code 517520: Gold Stock ETF, up 4.63% to 1.423 - Code 159322: Gold Stock ETF, up 4.51% to 1.158 [3] - The S&P Consumer ETF led the decline, down 2.29% [4] Group 4: Industry Trends - The rising gold prices are driving new growth trends in the industry, with the investment value of gold products becoming more prominent. This is expected to boost sales of investment-grade gold bars and brands with high cost-performance ratios [5] - The improvement in consumer spending, advancements in gold craftsmanship, and the rise of domestic brands are expected to provide strong growth momentum for the gold and jewelry industry [5]

Core Viewpoint - Several high-performing North Exchange theme funds have implemented purchase limits to maintain strategy effectiveness and protect investor interests [1][2] Group 1: Fund Performance and Market Dynamics - As of May 19, nearly 80% of North Exchange theme funds have seen net value increases exceeding 30% this year, with many products ranking high in their categories [2] - The rapid increase in net value indicates potential short-term volatility risks, prompting multiple North Exchange theme funds to impose purchase limits [2] - Fund managers believe that the recent revisions to major asset restructuring rules and the introduction of a "small and fast" review mechanism have invigorated the overall vitality of the sector [2][4] Group 2: Fund Company Competition and Strategy - Fund companies such as Baoying, Qianhai Kaiyuan, Yongying, and Huatai Bairui have launched new North Exchange 50 index funds this year, indicating increased competition [4] - The China Securities Regulatory Commission has emphasized the importance of performance comparison benchmarks, leading to a restructuring of benchmarks among North Exchange theme funds [4] - Recent adjustments in performance benchmarks reflect fund companies' proactive management capabilities and aim to enhance product transparency [4]

Market Performance - As of May 16, 2025, the North Exchange 50 Index increased by 8.90% over the past month, 15.56% over the past three months, and 79.80% over the past year[1] - The average market capitalization of the 266 A-share constituent stocks on the North Exchange is 3.016 billion yuan[9] - The daily average trading volume for the North Exchange 50 was 34.684 billion yuan, up 11.45% from the previous week, with a turnover rate of 4.55%[22] Stock and Industry Trends - Out of 266 stocks, 179 rose, 87 fell, and none remained flat, resulting in a rise ratio of 67.29%, which is a decrease of 24.40 percentage points week-on-week[15] - The top five performing industries were non-ferrous metals (226.44%), transportation (74.60%), public utilities (10.56%), beauty care (9.32%), and food and beverage (8.85%)[19] - The bottom five industries included defense and military (−2.82%), computer (−1.26%), social services (−0.96%), electric equipment (−0.36%), and communication (0.27%)[19] New Listings and Company Insights - Tian Gong Co., Ltd. was listed on May 13, 2025, with a revenue of 801 million yuan and a net profit of 172 million yuan in 2024[26] - The company experienced a significant revenue increase of 170.23% in 2023, reaching 1.035 billion yuan, with a net profit of 170 million yuan[27] - Tian Gong's gross margin was 30.40% in 2024, an increase of 4.88 percentage points year-on-year, while the net margin was 21.78%, up 4.86 percentage points[27] Investment Strategy and Risks - The North Exchange 50 Index continues to lead the market, with a focus on companies with stable growth and reasonable valuations[3] - Recommended stocks include Tongli Co. (PE 10.72), Wuxin Tunnel Equipment (PE 20.10), and Kaide Quartz (PE 33.40) among others[4] - Key risks include systemic risks, reliance on imported technology and materials, policy risks, and potential underperformance of key companies[35]