Group 1: Report Industry Investment Rating - Not provided in the given content Group 2: Core Viewpoints of the Report - This week, the winning probabilities of the equity and convertible bond markets were relatively insufficient, with various broad-based and convertible bond indices showing different trends. Short-term performance may be pressured by tariff disturbances. Since May, the equity market's rise has been characterized by a rebound from oversold conditions. Investors entered the market actively based on odds considerations, and with institutional support, the market continued to rise. However, after the Shanghai Composite Index reached a high on May 14, the logic of the rebound has changed, and market divergence has increased. Considering the uncertainty of future tariff policies, style rotation may accelerate. The dumbbell allocation strategy may continue to be advantageous [1][2][7] - In the short term, the winning probabilities of the equity and convertible bond markets are relatively insufficient and may be pressured by tariff disturbances. The risk of a significant short-term decline is limited, and the market will likely remain volatile. The dividend style benefits from policy support, and the technology growth style has re-entered the institutional view after a valuation correction [2][7] - It is recommended that investors focus on high-grade, fundamentally stable convertible bonds. The market style will still tend to be stable. Strategies should balance defense and theme flexibility. Suggested areas to focus on include the dividend, technology growth, and large consumption sectors [8] Group 3: Summary by Relevant Catalog 1 Market Observation - From May 26 to May 30, various broad-based and convertible bond indices showed different trends, with some convertible bond indices leading the gains. Balanced and equity-based valuations were compressed [7] - The market was volatile this week, with insufficient winning probabilities for major indices and significant sector differentiation. Environmental protection, medicine, and military industries led the gains. The small-cap style was dominant. The bond market had low volatility and weak trading sentiment due to the lack of a macro trading theme and limited odds space [2][7] - The equity market may be pressured by tariffs in the short term. The risk of a significant decline is limited, and the market will remain volatile. After the high on May 14, market divergence increased, and trading volume decreased. Style rotation may accelerate, with the dividend style benefiting from policies and the technology growth style re-entering institutional consideration after a valuation correction [2][7] - In the short term, investors are advised to focus on high-grade, fundamentally stable convertible bonds. Strategies should balance defense and theme flexibility. Suggested areas to focus on include the dividend, technology growth, and large consumption sectors [8] 2 Convertible Bond Market Tracking 2.1 Convertible Bond Market Trends - Not provided in the given content 2.2 Individual Convertible Bonds - Not provided in the given content 2.3 Convertible Bond Valuations - Not provided in the given content 2.4 Convertible Bond Prices - Not provided in the given content

Core Insights - The report highlights that the "Evergreen Low Volatility Strategy" is currently outperforming, while overseas equity markets are stabilizing and rebounding [3][4][5]. Group 1: Market Overview - The A-share market experienced a pullback after failing to maintain momentum above 3400 points, with significant adjustments in previously strong sectors like robotics and semiconductors [3][4]. - Defensive sectors, particularly dividend-related stocks, have shown resilience during market weakness, validating previous allocation views [3][4]. - In the overseas market, concerns about economic recession have eased slightly following comments from the Federal Reserve Chairman, leading to a rebound in U.S. stock markets [3][4]. Group 2: Strategy Allocation - The report ranks strategies as follows: Evergreen Low Volatility Strategy > Overseas Equity Strategy > Stock Fund Enhancement Strategy [4]. - The Evergreen Low Volatility Fund Strategy recorded a slight decline of -0.772% this week, while the stock fund enhancement strategy fell by -1.150% [6][18]. - The cash-enhanced fund strategy achieved a return of 0.032%, outperforming the benchmark [7][18]. Group 3: Fund Strategy Performance - The Evergreen Low Volatility Fund has shown strong stability since its inception, with a cumulative return of 9.170% since July 31, 2023 [18][20]. - The Stock Fund Enhancement Strategy has a cumulative return of 10.753% since its launch, indicating potential for excess returns as market conditions improve [18][24]. - The Overseas Equity Allocation Fund has accumulated a high level of excess returns, benefiting from the global technology growth driven by artificial intelligence [18][28]. Group 4: Fund Composition and Selection - The Evergreen Low Volatility Fund focuses on selecting funds with long-term stable returns, emphasizing low volatility and drawdown characteristics [14][20]. - The Stock Fund Enhancement Strategy aims to identify funds with strong alpha generation capabilities, focusing on stock selection and industry exposure [15][24]. - The Cash Enhanced Fund Strategy utilizes a multi-dimensional factor approach to select high-performing money market funds, optimizing short-term cash management [16][27]. Group 5: Global Investment Strategy - The report emphasizes the importance of QDII funds for global asset allocation, utilizing momentum and reversal factors to select overseas equity indices for investment [17][28]. - The Overseas Equity Allocation Fund has been effective in providing additional returns to A-share investments, particularly in the context of the Federal Reserve's interest rate policies [28][29].

Market Overview - The A-share market experienced a wide fluctuation on March 21, 2025, with the Shanghai Composite Index encountering resistance around 3414 points before retreating in the afternoon [3][7] - The Shanghai Composite Index closed at 3364.83 points, down 1.29%, while the Shenzhen Component Index fell 1.76% to 10687.55 points [8][14] - Key sectors showing positive performance included shipbuilding, mining, wind power equipment, and traditional Chinese medicine, while sectors like electric machinery, consumer electronics, auto parts, and semiconductors underperformed [3][7] Future Market Outlook and Investment Recommendations - The average price-to-earnings ratios for the Shanghai Composite and ChiNext indices are currently at 14.47 times and 38.41 times, respectively, indicating a suitable environment for medium to long-term investments [3][14] - The total trading volume on March 21 was 15802 billion, above the median of the past three years, suggesting robust market activity [3][14] - Continued counter-cyclical policy adjustments, fiscal stimulus, and monetary easing are expected to support the market, with a focus on technology innovation, consumer recovery, and green economy initiatives [3][14] - The upcoming peak reporting season from March to April will significantly influence market confidence, with a need to be cautious of stocks that may not meet earnings expectations [3][14] - Short-term investment preferences are shifting towards defensive sectors, with high-dividend assets performing steadily, while technology growth sectors face valuation pressures [3][14] - Future market trends are anticipated to feature technology leadership, defensive dividends, consumer recovery, and domestic demand-driven growth, with recommendations to seize structural opportunities while balancing defense and growth [3][14] - Short-term investment opportunities are suggested in sectors such as military industry, wind power equipment, coal, and oil [3][14]

Group 1 - The Hong Kong stock market showed positive momentum with the Hang Seng Index rising by 1.91% and the Hang Seng Tech Index increasing by 2.81% as of the morning of March 18 [1] - The Hong Kong Tech ETF (159751) experienced a gain of 3.28%, with a trading volume exceeding 55.88 million and a turnover rate of 11.8%, indicating active trading [1] - Notable gains were observed in component stocks, with WuXi AppTec rising over 13%, WuXi Biologics increasing by over 7%, and Alibaba, Kuaishou, and Bilibili each gaining over 4% [1] Group 2 - China AI Day, part of NVIDIA's GTC 2025 conference, will feature major domestic cloud and internet companies sharing advancements in large language models (LLM), multimodal large language models (MLLM), data science, and search promotion [1] - The event will include participation from companies such as ByteDance, Alibaba Cloud, Baidu, Ant Group, JD.com, Meituan, Kuaishou, and others, showcasing how they optimize AI performance and efficiency through hardware and software collaboration [1] Group 3 - Overall, external disturbances are stabilizing, and the spring market is expected to continue, driven by demand recovery and supply contraction leading to profit improvements and capital inflows [2] - The technology growth sector remains a primary focus, with a mid-term trend of confidence reassessment in Chinese assets expected to persist [2] - After a sustained upward trend in the Hong Kong stock market, the proportion of stocks above the 20-day moving average rose from 22.9% to a high of 90.4% on March 7, indicating a significant market breadth improvement [2]