Group 1 - The launch of the Omin E Fund ChiNext ETF on the Singapore Exchange marks an expansion of the China-Singapore ETF mutual access program, providing overseas investors with a convenient tool to invest in China's ChiNext market [1][3] - The ChiNext Index, which the ETF tracks, is a significant benchmark in the A-share market, representing innovative and entrepreneurial companies, with over 90% of its weight in strategic emerging industries such as new generation information technology, new energy vehicles, and biomedicine [1][2] - The ChiNext Index has shown strong fundamental growth, with a compound annual growth rate of 21% in revenue and 14% in net profit since 2021 [1] Group 2 - E Fund's Vice President highlighted that China, as the world's second-largest economy, is steadily advancing financial market openness, making its market an essential part of global asset allocation [2] - The Omin E Fund ChiNext ETF is the second cross-border ETF resulting from the collaboration between Omin Asset Management and E Fund, symbolizing their deepening partnership and joint efforts in international market expansion [2] - The Shenzhen Stock Exchange plans to continue expanding high-level openness and optimize mutual access product mechanisms to attract more long-term foreign capital into the Chinese market [2][3]

Core Viewpoint - The QDII funds are showing increased tolerance for stock valuations, reflecting a shift in market risk appetite as liquidity conditions change and Chinese asset prices rise globally [1][4]. Group 1: QDII Fund Investment Trends - QDII funds are beginning to invest in previously overlooked stocks, such as Blucor, which has seen its stock price rise over 110% in the last five months despite a projected net loss of 401 million yuan for 2024 [2]. - Funds are increasingly focusing on new economy sectors, with E Fund investing in Quzhi Group, which operates AI-driven vending machines, despite the company projecting a net loss of 167.2 million yuan for 2024 [3]. - Southern Fund has invested in the U.S.-listed company Manbang, which utilizes AI for logistics, marking a shift in QDII fund strategies towards more aggressive stock selection [3]. Group 2: Market Sentiment and Strategy - The shift towards a more aggressive investment strategy among QDII funds indicates growing confidence among institutional investors in the current market [4]. - Historically, QDII funds maintained strict selection criteria to avoid significant losses, but recent changes in liquidity and asset pricing have prompted a reevaluation of these strategies [4]. - Even companies with substantial losses, such as Weimeng Group, are being targeted by funds, suggesting a belief in their potential to benefit from domestic consumption recovery [4]. Group 3: Valuation Perspectives - Valuation assessments are subjective, varying significantly among fund managers based on their market outlook and investment philosophy [5]. - The rise of technology narratives is influencing stock market valuations, contributing to the more aggressive strategies adopted by QDII funds [6]. - The emergence of Chinese tech companies as new growth engines is creating diverse and sustainable investment opportunities, particularly in sectors like AI and consumer demand [7]. Group 4: Market Dynamics - The recovery of the Hang Seng Index's dynamic P/E ratio to historical averages suggests that further valuation increases will depend on corporate earnings and macroeconomic recovery [8]. - There is a notable shift of funds from higher-valued markets in the U.S. and India to lower-valued markets in China and Europe, providing additional capital to the Hong Kong tech sector [7].