Core Viewpoint - The article discusses the resurgence of active equity funds, highlighting their recent outperformance compared to the CSI 300 index, particularly in a structural market environment that favors growth opportunities [1][2]. Group 1: Active Equity Fund Performance - Over the past three years, active equity funds have underperformed the CSI 300 index, leading to skepticism about their ability to generate excess returns [1]. - As of October 24, the Wind偏股基金指数 recorded a return of 32.39%, significantly outperforming the CSI 300 index's 14.68% during the same period [1]. - Historically, active equity funds have outperformed the CSI 300 index during growth structural opportunities in years such as 2010, 2015, and 2019 to 2021 [1]. Group 2: Recommended Balanced Funds - The article identifies three balanced fund products from Southern Fund that are suitable for investors lacking specific sector or style selection capabilities: 1. 南方智信混合 (managed by Zhang Yanmin) 2. 南方智弘混合 (managed by Jin Lanfeng) 3. 南方港股通优势企业 (managed by Luo Shuai) [2][3]. - These funds are characterized by their ability to control drawdowns in bear markets while capturing gains in bull markets, making them ideal for investors who prefer a hands-off approach [2]. Group 3: Fund Manager Insights - Zhang Yanmin's 南方智信混合 achieved a return of 54.80%, outperforming its benchmark by 30.87% since inception [5]. - Jin Lanfeng's 南方智弘混合 recorded a return of 48.25%, surpassing its benchmark by 20.29% within its first year [12]. - Luo Shuai's 南方港股通优势企业 achieved a total return of 28.87%, outperforming its benchmark by 18 percentage points over more than four years [20]. Group 4: Investment Strategies - Zhang Yanmin emphasizes a diversified investment approach, focusing on both the probability of success and the price at which assets are acquired, adapting to market style rotations [7][9]. - Jin Lanfeng employs a cyclical investment framework, making tactical adjustments based on market conditions and focusing on less crowded investment opportunities [15][16]. - Luo Shuai's strategy involves maintaining a balanced portfolio of high-quality companies, adapting to market conditions while seeking growth opportunities in the Hong Kong market [22][23]. Group 5: Conclusion on Balanced Products - The three identified balanced funds are suitable for ordinary investors seeking stable returns, with a focus on minimizing maximum drawdowns and enhancing adaptability in various market environments [27].

Report Industry Investment Rating No relevant content provided. Core Views of the Report - Value style outperforms growth style and the overall market in the long - run, with better risk - return ratios [2][6]. - Value - style funds are scarce in the market, and fund managers need strong conviction and support to adhere to this style [14][16]. - Lan Xiaokang of China Europe Fund is a value - investment adherent. His China Europe Dividend Optimal has achieved excellent performance [2][17]. Summary by Directory 1. Value Style Fund Product Investment Value Overview 1.1 Value Style Performance: Better Risk - Return Ratio in the Long Run - Since 2012 (as of 2025/10/24), the Guozheng Value R has significantly outperformed the Guozheng Growth R and the Wind All - A, indicating the long - term superiority of the value style [6]. - The investment return of the value style is more stable, with a higher win - rate. From 2017 to 2025/10/24, the one - year rolling return win - rate of Guozheng Value R is 70.77%, compared to 56.50% for Guozheng Growth R [8]. - In terms of risk indicators such as yield, volatility, and maximum drawdown, the Guozheng Value R outperforms the Guozheng Growth R in different time periods, showing a better risk - return ratio [11]. 1.2 Scarcity of Value - Style Fund Products in the Market - Only 11 out of over 1700 active equity fund managers manage value - style funds that meet the defined criteria, and 4 of them are financial real - estate funds [14]. - Reasons for the scarcity include fund managers' subjective wavering, scale pressure, and inappropriate fund company assessment systems [15][16]. 2. Lan Xiaokang of China Europe Fund - A Value - Investment Adherent Seeking Maximum Investment Efficiency in Certain Returns 2.1 Background: Years of Research and Management Experience, Historical Performance Outperforming the CSI 300 - Lan Xiaokang has about 8.5 years of investment management experience, currently manages 4 funds with a total scale of 24.809 billion yuan [17]. - His fund manager index has outperformed the CSI 300, especially since 2021 [17]. 2.2 Investment Framework: Seeking Maximum Investment Efficiency under the Premise of Safety - Lan Xiaokang builds a systematic investment framework through top - down and bottom - up research, focusing on macro trends and individual stock fundamentals [19]. - He uses multiple investment strategies, including long - term, dividend, stable - return, hedging, and trend - reversal strategies, to seek differentiated excess returns [19]. 2.3 Representative Product: China Europe Dividend Optimal - Lan Xiaokang's China Europe Dividend Optimal has achieved a return of 169.82% since he took over in 2018/4/20, significantly outperforming its benchmark [20][22]. 3. Analysis of the Characteristics of China Europe Dividend Optimal 3.1 Performance: Leading in Return and Risk - Return Ratio - Since Lan Xiaokang took over, as of 2025/10/24, the cumulative return of China Europe Dividend Optimal is 169.82%, significantly outperforming the benchmark [24]. - From 2019 to 2025/10/24, the quarterly win - rate of positive returns is 74.1%. The quarterly win - rate of relative returns compared to the benchmark and Guozheng Value R is 77.8% and 74.1% respectively, with average quarterly excess returns of 3.82% and 2.58% [25]. - Since 2019, the annualized return of China Europe Dividend Optimal is 19.88%, ranking in the top 12% among similar products. The annualized volatility is 19.98%, ranking in the bottom 25%. The annualized Sharpe ratio and Calmar ratio are in the top 5% and 1.5% respectively [30]. 3.2 Industry Distribution: Timely Rotation with Good Results - The fund mainly invests in value - style sectors such as household appliances, non - bank finance, and real estate, and rotates among these sectors in a timely manner [34]. - Industry rotation operations have brought significant excess returns. For example, in 2024, the increase in bank holdings and the reduction in coal holdings contributed positive excess returns [38][42]. 3.3 Holding Characteristics: Moderate Concentration of Individual Stocks and Timely Allocation of Hong Kong Stocks - The top ten holdings of the fund account for 40% - 60%, and the top thirty holdings account for over 90%, with a moderate concentration of individual stocks [43]. - The fund has a low turnover rate, with a short - term increase in 2020 - 2021, presumably due to adjustments in response to market changes [43]. - The fund mainly focuses on large - and medium - cap stocks, and has gradually increased its allocation to Hong Kong stocks since 2023, with nearly 50% of stock positions in Hong Kong stocks as of the 2025 semi - annual report [45]. 3.4 Return Breakdown: Significant Contribution from Stock Selection - Stock selection is the main source of excess returns for the fund, and trading also contributes a small amount of excess returns [48]. - The absolute return of the fund comes from multiple sectors, with significant contributions from the cyclical sector. In terms of relative returns, the cyclical and financial real - estate sectors have made significant contributions [53]. 3.5 Product Feature Summary - The fund focuses on value - style sectors and achieves good results through timely industry rotation [58]. - It has an outstanding risk - return ratio, with leading returns and low volatility [58]. - Stock selection is the main source of excess returns, mainly from cyclical and financial real - estate innovation sectors [58]. 4. Fund Manager's Ability Circle: Outstanding Hidden Trading and Industry Rotation Abilities - Lan Xiaokang has a moderately diversified industry allocation and a moderately concentrated individual - stock allocation [59]. - His stock - selection ability is strong, ranking in the top 20% among similar products since 2020 [59]. - His hidden trading ability is excellent, ranking in the top 10% among similar products [59]. - His industry rotation ability is stable, ranking in the top 15% among similar products [60]. - His ability to invest in both upward and downward markets is good, being able to seize opportunities in upward markets and defend well in downward markets [60].

Group 1 - The report introduces a quantitative model solution for addressing the value-growth style switching issue, combining investment expectations based on odds and win rates [1][8] - The overall market growth style portfolio achieved a return of 4.58%, while the value style portfolio returned 2.24% in the last week [1][8] Group 2 - The estimated odds for the growth style is 1.08, while for the value style it is 1.12, indicating a negative correlation between relative valuation levels and expected odds [2][14] - The current win rate for the growth style is 63.24%, compared to 36.76% for the value style, based on seven win rate indicators [3][19] Group 3 - The latest investment expectation for the growth style is calculated to be 0.32, while the value style has an investment expectation of -0.22, leading to a recommendation for the growth style [4][21] - Since 2013, the annualized return of the style rotation model based on investment expectations is 27.99%, with a Sharpe ratio of 1.04 [4][22]

Group 1: Market Sentiment Model Insights - The market sentiment score has slightly increased to 2.2 as of October 24, compared to 1.9 the previous week, indicating a partial recovery in market sentiment [9][12]. - The overall market sentiment is showing increased differentiation, with a decline in price-volume consistency, suggesting reduced capital activity and a cautious risk appetite among investors [12][19]. - The total trading volume for the entire A-share market has significantly decreased compared to the previous week, with a peak trading volume of 1,991.617 billion RMB on October 24 [19][22]. Group 2: Industry Trends and Insights - As of October 24, 2025, industries such as banking, oil and petrochemicals, transportation, public utilities, and construction decoration have shown an upward trend in short-term scores, with coal being the strongest at a score of 93.22 [40][41]. - The model indicates that the banking sector's short-term score has rapidly increased, maintaining a favorable signal for both value and large-cap styles [40][41]. - The analysis of industry crowding shows that sectors like electronics and power equipment have high returns but also high capital crowding, which may pose volatility risks [43][44]. Group 3: Technical Indicators and Market Dynamics - The Relative Strength Index (RSI) has shown a decline, indicating weak upward momentum and reduced buying interest in the market [32][35]. - The main capital inflow has improved, suggesting an increase in institutional buying power and a gradual warming of market sentiment [35][37]. - The model maintains a signal indicating that large-cap and value styles are currently dominant, although the strength of this signal may weaken in the future [52][53].

Core Viewpoint - The article discusses the current market trends, focusing on the performance of various stock styles and the recovery of corporate earnings in A-shares and Hong Kong stocks, indicating potential investment opportunities. Group 1: Market Performance - The market experienced slight declines, with the index closing at 4.2 stars [1] - Both large, medium, and small-cap stocks showed minor declines [2] - Value styles remained relatively resilient during market fluctuations [3] - The Shanghai Dividend and CSI 300 Value indices have returned from undervaluation to normal valuation levels [4] - Other indices like the Hong Kong-Shenzhen Dividend and Free Cash Flow are also approaching normal valuation [5] Group 2: Earnings Recovery - The recent quarterly reports indicate a recovery in corporate earnings after a low-performing year [16][17] - Three tiers of earnings recovery are identified: 1. Technology and pharmaceutical stocks in Hong Kong showed significant year-on-year earnings growth, exceeding 100% for some [18][19] 2. Stable earnings growth was observed in consumer sectors and value styles, with A-share pharmaceuticals also recovering [22][24] 3. Some sectors, like A-share consumer and real estate, remain in a low-performing phase with no signs of recovery yet [26][28][29] - The overall economic low point is expected to occur in 2024, followed by a gradual recovery [30] Group 3: Investment Tools and Features - A new feature in the "Today Stars" app allows users to view core data and real-time valuations of mainstream ETFs [31] - The app supports tracking ETF premium/discount rates and historical valuation data [33] - Users are encouraged to provide feedback on additional data or features they would like to see [32]

Group 1 - The core viewpoint of the news indicates that the A-share market is expected to enter a more sustainable upward trend, with major indices projected to rise by approximately 30% by the end of 2027, driven by corporate earnings growth and valuation recovery [1] - Goldman Sachs' research team suggests that the current market leverage levels are generally controllable, with no signs of overheating, and despite recent market pullbacks, the medium-term outlook remains positive [1] - UBS Securities highlights a shift in market style since October, with a consensus likely to form around the technology growth sector, supported by easing risk sentiment and the verification of third-quarter earnings [1] Group 2 - The micro-cap stock index has shown impressive performance, with a year-to-date increase of nearly 64% as of October 21, 2023, reaching a historical high, which may be attributed to its "reverse stock selection" characteristic [2]

Group 1 - UBS maintains an overweight rating on China within emerging markets, citing faster revenue and earnings growth compared to India, and improving capital return rates in the MSCI China index [1] - A-shares have experienced a style shift from "growth" to "value dividend" since October, influenced by US-China trade tensions and profit-taking in the tech sector, but the medium-term outlook for A-shares remains positive [1][3] - Foreign investors are closely monitoring China's 14th Five-Year Plan, particularly aspects related to "anti-involution," consumption promotion, high-quality growth, and the development of new productive forces [1][11] Group 2 - A-shares are showing structural differentiation, with major indices fluctuating, but foreign investors believe there is still high allocation value in the market despite recent tariff impacts [3][4] - The market's sensitivity to US-China trade tensions has decreased, and there is an expectation of policy measures to stabilize the market if significant volatility occurs [4] - Foreign investors favor industry leaders, with significant holdings in companies like Kweichow Moutai, Ping An, and Wuliangye, indicating a preference for stable, high-quality stocks [6][7] Group 3 - Foreign investors are increasing their positions in leading stocks, with notable increases in holdings for companies like Siyi Electric and Hai Da Group during the third quarter [8][6] - UBS expresses a preference for A-shares over H-shares due to their defensive nature against geopolitical tensions, maintaining a focus on growth styles as the main investment theme [10] - The upcoming policies in the 14th Five-Year Plan are expected to create potential opportunities in "anti-involution" and service consumption, which could drive cyclical improvements in various industries [12]

Core Viewpoint - The market is experiencing fluctuations, but the value style is rising against the trend, with the Guozheng Value 100 Index up by 0.6% as of 14:30, potentially achieving a "three consecutive days" increase [1] Summary by Relevant Sections Market Performance - The Guozheng Value 100 Index is showing resilience with a 0.6% increase, indicating strong interest in value stocks despite overall market adjustments [1] - The value ETF (159263) has attracted approximately 200 million yuan in inflows since October, reflecting ongoing investor interest [1] Future Outlook - Analysts suggest that the value style has both upward potential and higher investment success rates. The divergence between growth and value styles has reached historical highs, indicating potential for convergence [1] - Value stocks have lagged in previous gains, suggesting greater relative return potential moving forward [1] - Current market conditions show a high demand for low-risk investments, which may favor the value style as risk appetite declines [1] Index Characteristics - The Guozheng Value 100 Index employs a screening system based on "high dividend + high free cash flow + low PE," focusing on core value stocks in the market [1] - The index currently has a dividend yield of approximately 5% and a rolling price-to-earnings ratio of 9, which is at the 17th percentile over the past five years [1] - Since its inception at the end of 2012, the total return index has achieved an annualized return of 17% [1] Investment Product - The value ETF (159263) is the first product tracking the Guozheng Value 100 Index, providing investors with a means to access undervalued quality assets in the market [1]

Core Viewpoint - The overall market has shown an upward trend, with significant gains in both the A-share and Hong Kong markets, indicating a positive sentiment towards technology and value stocks [1][12][7]. Group 1: Market Performance - The overall market index has risen to 4.2 stars, reflecting a positive market sentiment [1]. - Both large, mid, and small-cap stocks have experienced similar upward movements [2]. - The ChiNext index has also seen a substantial increase, currently at a normal to slightly high valuation level [4]. - The technology sector has been a primary driver of profit growth in both A-shares and Hong Kong stocks this year [7]. Group 2: Earnings and Valuation - Leading companies in the ChiNext have reported good earnings growth, which is essential for the long-term rise of the index [3][5]. - Different sectors are recovering at varying paces, with value stocks showing less volatility compared to growth stocks [6][9]. - Recently, previously undervalued dividend stocks are approaching their normal valuation levels [10]. - The estimated valuation metrics suggest that as the market approaches around 3 stars, the green rate in the valuation table will be low [11]. Group 3: Investment Strategies - The investment strategy includes pausing regular investments in the index-enhanced portfolio as it returns to normal valuation, while continuing to hold existing positions [14]. - The active selection portfolio is also close to normal valuation, indicating a cautious approach to new investments [14]. - The "monthly salary treasure" investment strategy, which consists of 40% stocks and 60% bonds, is recommended for stable market participation [14]. - The introduction of an "automatic stop-loss" feature for investment portfolios aims to enhance risk management by automatically executing profit-taking strategies when market conditions are favorable [43].

Core Viewpoint - The A-share market is experiencing a collective rise, with foreign investors expressing optimism about China's market, particularly highlighting the potential for growth in the A-share index compared to other emerging markets like India [1][3]. Group 1: Market Performance and Investor Sentiment - The A-share indices collectively rose on the 21st, with the Shanghai Composite Index reclaiming the 3900-point mark [1]. - UBS has maintained an "overweight" rating on China within emerging markets, citing faster revenue and earnings growth compared to India, and improvements in capital return rates for the MSCI China Index [1][3]. - Since October, A-shares have shifted from a "technology growth" style to a "value dividend" style, influenced by factors such as renewed US-China trade tensions and profit-taking by investors [1][3]. Group 2: Foreign Investment Trends - Foreign investors have been actively targeting leading A-share stocks, with significant holdings in companies like Siyuan Electric, Huaming Equipment, and Hongfa Technology, each having over 24% foreign ownership [2][6]. - As of the end of September, major foreign-favored stocks included Kweichow Moutai, Ping An Insurance, and Wuliangye, with foreign institutional holdings reaching 85, 83, and 81 respectively [6]. - The banking sector remains a strong focus for foreign investors, with seven of the top ten A-share companies by foreign holdings being banks [6][7]. Group 3: Market Outlook and Strategic Focus - UBS believes that the A-share market will continue to perform well in the medium term, with growth styles likely to outperform value styles [9]. - Investors are encouraged to focus on companies with strong fundamentals and pricing power to navigate uncertainties in the trade environment [10]. - The upcoming "14th Five-Year Plan" is expected to provide investment opportunities, particularly in areas like "anti-involution" and service consumption, which may drive cyclical improvements in various industries [10][11].