Market Strategy - The market experienced a "first decline then rise" trend in March, with a "slow bull" pattern expected to continue into April, indicating a stable market environment despite geopolitical tensions [2][6] - The adjustment in the market provides upward space, and the structural factors will determine excess returns, suggesting that investors should seize opportunities during dips [2][6] Sector Strategy - The transition towards manufacturing is underway, with new energy leading the manufacturing market, highlighting the importance of energy independence amid geopolitical conflicts [3][4] - The photovoltaic (PV) industry is expected to see valuation recovery due to the increasing emphasis on energy autonomy, with public fund holdings in the sector remaining low at 1.16% as of June 30, 2025, compared to 5.69% in mid-2022, indicating significant room for growth [4][6] Thematic Strategy - The defense and aerospace sectors are accelerating core segment advancements, with a focus on the domestic large aircraft industry, which is expected to scale up production significantly [5][6] - The global aviation manufacturing sector is facing capacity constraints due to core bottlenecks, with the aircraft shortage anticipated to persist for the next 5 to 8 years, emphasizing the importance of domestic production capabilities [5][6]

1. Report Industry Investment Rating - The report does not mention the industry investment rating [8] 2. Core Viewpoints of the Report - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session, especially on March 23, when many products had a significant increase in volume at the end of the session [7][10] - After the market closed on March 23, the quantitative signals quickly strengthened, but there was differentiation among sectors. The technology sector had relatively weak signals [7] - In terms of style, the mid - cap blue - chip market is still favored, and the agriculture and manufacturing industries are optimistic, with a focus on the photovoltaic sector [7] 3. Summaries According to the Directory 3.1 3月23日主要宽基指数ETF成交量明显放大 - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session. On March 23, when the market had a significant adjustment, many ETFs showed significant volume increases after 14:45. For example, the trading volume of Huatai - Berries CSI 300ETF, Huaxia SSE 50ETF, Southern CSI 500ETF, and Southern CSI 1000ETF in the last 15 minutes accounted for 10.5%, 17.8%, 8.8%, and 15.9% of the whole - day trading volume respectively [10] 3.2 盘后量化模型信号迅速转强，市场有望迎来反弹 3.2.1 下跌后估值安全边际提升 - As of March 23, 2026, with the change in market sentiment, the price - to - earnings ratios of major A - share broad - based indexes have fallen back to a reasonable range. Compared with March 2, the valuation quantiles of major broad - based indexes have significantly decreased, and the market has become more rational. Currently, they are mostly in the 70 - 80 quantiles, providing a higher safety margin for equity assets [24] 3.2.2 3月23日盘后量化信号迅速转强 - **Broad - based index short - term signal strengthening**: The short - term signal of broad - based indexes has a good historical performance. On March 23, the quantitative signals of major broad - based indexes quickly strengthened after the market closed. Since 2026, the quantitative signals were strong in January, neutral in February, and weakened at the end of March. With the rapid decline of the market on March 23, the quantitative signals returned to the previous high level [30][35] - **Industry medium - term signal strengthening but sector differentiation**: The monthly medium - term signal of industry indexes also has an indicative effect. Similar to the performance of broad - based index signals, the quantitative signals indicating the industry strength in the next month also strengthened, but there was differentiation among sectors. The signals of value - based sectors were strong, while the expectations of the technology sector were still relatively weak, and the mid - cap blue - chip style is expected to continue to strengthen [38][40] 3.3 继续看好农业与制造，重点关注光伏板块 - Despite the high uncertainty in the external situation, the investment opportunities still focus on stocks with medium - risk characteristics, and the characteristics of mid - cap blue - chips will be further strengthened, with a focus on the cyclical and manufacturing sectors. In the context of the prominent global energy security requirements, the new energy industry (photovoltaic, wind power, power transmission) with global competitive advantages in China is the core main line of the manufacturing sector. The report lists relevant ETFs in the photovoltaic, power, and agricultural sectors for reference [46]

Core Insights - The report emphasizes the resilience of supply chain security and the ongoing strength of mid-cap blue-chip stocks in the current market environment [2][3] - Geopolitical tensions, particularly the escalation of the US-Iran situation, are identified as key factors influencing global asset prices, with a noted decrease in risk appetite among investors [2][3] - The report suggests that while geopolitical uncertainties are rising, the direct impact on the Chinese economy remains manageable, allowing for a strategic focus on mid-cap blue-chip investments [2][3] Market Strategy - The mid-cap blue-chip market is expected to continue its upward trend, driven by heightened awareness of energy security and supply chain resilience [2][3] - The report indicates a shift in investment focus from purely cyclical price increases to broader themes of "safety" and "self-sufficiency" [2][3] - Investors are encouraged to consider low-priced mid-cap blue-chip stocks in sectors such as agriculture, photovoltaics, and new energy, which are beginning to show better value [2][3] Industry Strategy - The agricultural sector is highlighted as benefiting from rising price expectations due to geopolitical disruptions, with a positive outlook for domestic agricultural enterprises expanding overseas [4][6] - The report notes that the upward trend in grain prices is established, with favorable conditions for planting and seed industries, presenting significant investment opportunities [4][6] - Companies with strong competitive advantages and well-established supply chains are expected to capitalize on growth in emerging markets like Southeast Asia and Africa [4][6] Thematic Strategy - The smart driving industry is experiencing accelerated commercialization, with a notable increase in the penetration rate of L2 and above driving assistance systems in passenger vehicles [5][6] - The report identifies the need for improved collaboration among sensor suppliers, high-precision map service providers, automakers, algorithm companies, and insurance institutions to address challenges in smart driving commercialization [5][6] - Key players in the smart driving sector are shifting their focus from technological breakthroughs to the establishment of regulatory and application frameworks [5][6]

Core Insights - The report highlights that geopolitical conflicts have escalated beyond expectations, creating opportunities for strategic investments in the market [2][3] - The focus on supply chain resilience is shifting from non-ferrous and chemical sectors to energy and agriculture, indicating a broader investment strategy towards safety and self-sufficiency [3] Market Strategy - The current market is experiencing a transition within the mid-cap blue-chip style, where supply chain resilience is becoming a key investment theme, particularly as it expands from non-ferrous and chemical sectors to energy and agriculture [3] - Relevant ETFs include Agricultural ETFs (159825/159827), Livestock ETFs (516760/159865/159867), and New Energy ETFs (159387/159122/159187) [3] Industry Strategy - The report notes that rising energy prices are positively impacting the agricultural sector, with specific commodities like live pigs and rubber already at the beginning of a price uptrend due to supply adjustments [4][9] - The agricultural sector is viewed as having high investment value due to price increase expectations and strategic safety considerations, with a continued positive outlook on pig farming, animal health, and planting chains [9] Thematic Strategy - The report suggests that rising oil prices will accelerate the global adoption of new energy vehicles, enhancing their cost advantages over traditional fuel vehicles [5][9] - Domestic car manufacturers, particularly independent brands, are expected to gain competitive advantages in the global new energy vehicle market, which will become a significant growth area for these companies [9]

Core Insights - The report emphasizes the importance of supply chain resilience as a key investment theme due to escalating geopolitical conflicts, suggesting a shift in mid-cap blue-chip strategies towards broader concepts of "security" and "self-sufficiency" [2] - The current market is experiencing a high-low switch within the mid-cap blue-chip style, with previously high-performing cyclical sectors like metals and chemicals facing increased trading congestion, while agricultural, power, and photovoltaic sectors present better value and supply resilience [2] - The photovoltaic industry is entering a high prosperity cycle driven by dual catalysts from domestic and international markets, with significant growth potential in space photovoltaic applications [6] Industry Strategy - The space photovoltaic sector is expected to thrive with plans for deploying 100GW solar AI satellite networks annually and a substantial number of satellite launches in China, indicating a market space worth trillions, even with technological cost reductions [6] - The report highlights the opportunity for Chinese power equipment companies to expand internationally, driven by a $75 billion grid construction project in North America and challenges faced by local manufacturers in meeting demand [6] - Key companies in the photovoltaic equipment sector are recommended for investment, as they are likely to benefit from the expansion of overseas leading manufacturers [6] Related ETFs and Stocks - Suggested ETFs include agricultural ETFs (159825/159827), livestock ETFs (516760/159865/159867), photovoltaic ETFs (560230/159864/516290/516180), and power ETFs (159146/562350/561170/159669/159625) [2] - Notable stocks mentioned for potential investment include Aotewi (688516), Maiwei Co. (300751), and Jiejia Weichuang (300724) in the photovoltaic sector, as well as Jinpan Technology (688676) and Shima Power (603530) in the power equipment sector [6]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - The "mid - cap blue - chip" style is strengthening, and the market in March 2026 may follow the logic of the cycle + high - end manufacturing sectors. The report is optimistic about the cycle and manufacturing fields, suggesting to focus on chemical, non - ferrous (especially small and medium - sized metals), agricultural products and related shipping and transportation in the cycle field, and military industry, large aircraft, new energy, robots, high - end equipment in the manufacturing field. Based on the industry and style rotation model, it also recommends paying attention to non - ferrous metals, communication, national defense and military industry, coal, basic chemical industries and the mid - cap value style in March [7][60]. Summary by Directory ETF Market Overview - As of February 27, 2026, there are 1447 domestic ETF products, an increase of 49 compared with the beginning of the year, and the total scale is 5.39 trillion yuan, a rebound of 584 billion yuan from the previous month [7][10]. Dynamics of ETFs in Each Asset Class - **A - share ETFs**: There are 1093 A - share ETFs, an increase of 6 from the previous month, and the total scale is 3.12 trillion yuan, a rebound of 192 billion yuan. The scale of two products exceeds 100 billion yuan, and oil and gas, ship, and non - ferrous related products have the highest increases in performance [12][14]. - **Cross - border ETFs**: There are 257 cross - border ETFs, an increase of 2 from the previous month, and the total scale is 1.0179 trillion yuan, an increase of 2 billion yuan. South Korea - China chip, S&P oil and gas, and Brazil - related ETFs are relatively active, with the South Korea - China chip ETF from Huatai - Peregrine up more than 30% [21][23]. - **Bond ETFs**: There are 53 bond ETFs, the same as the previous month, and the total scale is 735 billion yuan, an increase of 137 billion yuan. Credit bond ETFs mainly composed of science and technology innovation bonds contribute the most to the increase [29]. - **Commodity ETFs**: There are 17 commodity ETFs, the same as the previous month, and the total scale is 344.3 billion yuan, a continuous increase of 21.4 billion yuan from the previous month. Soybean meal and non - ferrous ETFs have higher increases than gold ETFs in the past month [35]. Manager Landscape - **Manager Scale and Ranking**: The scale of leading fund managers has stabilized this month after a significant decline last month. As of February 27, 2026, Huaxia Fund and E Fund still rank top two in non - monetary ETF management scale. In terms of broad - based ETFs, Huaxia Fund ranks first, and in terms of industry ETFs, Huaxia Fund and E Fund are in the top two. The ranking of the top 20 in total ETF scale is also relatively stable this month [41]. - **Manager Competition Pattern Change**: The concentration of leading ETF managers has been declining since the beginning of 2026. As of February 27, 2026, the scale concentration of the top 10 managers has decreased by about 0.1 percentage points to 72.52% compared with the previous month, but the decline has narrowed significantly compared with the 4 - percentage - point decline last month [44]. Capital Flow Changes - **Large - scale Assets**: Capital has flowed out of A - share ETFs by over 200 billion yuan again, but the intensity has narrowed. It has continued to flow into cross - border and commodity ETFs. In the past month, capital has flowed out of the ETF market by 136.3 billion yuan in total, with A - share products having the largest outflow of 215.1 billion yuan, while cross - border and commodity products have inflows of 48 and 19 billion yuan respectively [7][47]. - **Sub - sectors**: Capital has significantly reduced its allocation to CSI 300, CSI 500, SSE 50, and science and technology innovation bonds, and increased its allocation to communication, Hang Seng Technology, gold, short - term financing bonds, and semiconductor/chip sectors [7][50]. Product Application Dynamics - In February 2026, 54 new product applications were received, an increase of 6 from the previous month. Products related to petroleum, electricity, agriculture and other industries with cyclical attributes had relatively more applications [58]. ETF Monthly Investment Strategy - **Based on Industry and Style Rotation Strategy**: The industry rotation strategy based on prosperity suggests being optimistic about non - ferrous metals, communication, national defense and military industry, coal, and basic chemical industries in March 2026. The style rotation strategy shows that the prosperity of the growth style may decline marginally in March, while the value style may diverge, and the mid - cap value style may continue to expand. - **Based on Subjective Strategy Analysis**: The investment focus will shift to "mid - cap blue - chips". It is recommended to focus on the cycle and manufacturing fields. In the cycle field, pay attention to chemicals, non - ferrous metals, agricultural products and related shipping and transportation; in the manufacturing field, focus on military industry, large aircraft, new energy, robots, and high - end equipment. - **March ETF Asset Pool**: A reference pool of equity ETFs for March 2026 is provided, covering mid - cap broad - based, strategy - based, technology - manufacturing, and cyclical sectors [60][78][79].

Core Insights - The report indicates that the market is expected to maintain a slightly strong oscillating pattern, with a comparative advantage in China's asset risk evaluation highlighted amidst global geopolitical tensions [3][4]. Market Strategy - The geopolitical conflicts, particularly the escalation of the US-Iran situation, are suppressing risk appetite globally, while China's economic risk evaluation is anticipated to continue declining, reinforcing the slightly strong market outlook [3][4]. - The report suggests that the market is currently in a high-low switching window for mid-cap blue-chip stocks, with agricultural sectors showing increasing value due to their low positioning [4][5]. Industry Strategy - The agricultural sector is experiencing price increase expectations due to geopolitical disturbances, with a confirmed upward trend in grain prices and favorable fundamentals for planting and seed industries [5]. - Domestic agricultural companies are expected to expand their growth potential through international markets, particularly in Southeast Asia and Africa, where demand for improved living standards is rising [5]. Thematic Strategy - The report discusses the advancements in quantum computing, noting significant investments and strategic initiatives from major global economies, which are expected to accelerate commercialization and market potential [6][5]. - It highlights that quantum computing has reached a critical milestone in error correction, bringing it closer to practical applications, and suggests investors focus on key upstream components and downstream applications [6].

Core Insights - The report highlights that geopolitical conflicts have intensified, reinforcing the investment theme of supply chain resilience, with a shift in focus towards mid-cap blue-chip stocks that emphasize "safety" and "self-sufficiency" [3][6] - The current market is experiencing a high-low switch within the mid-cap blue-chip style, where sectors like agriculture, electricity, and photovoltaics are becoming more attractive due to their lower valuations compared to previously high-performing cyclical sectors like metals and chemicals [3][6] Market Strategy - The geopolitical tensions, particularly the military actions by the US and Israel against Iran, have led to a noticeable decline in risk appetite, resulting in ongoing market adjustments [6] - The report maintains a view of a "first suppress then rise" pattern for March, with a focus on identifying low-point opportunities in broad-based mid-cap stocks during this adjustment phase [6] Industry Strategy - The oil transportation sector is expected to see continued improvement in market conditions due to a combination of increased production, sanctions, and rising industry concentration, with the recent military actions potentially accelerating the realization of geopolitical options [7] - The report notes that the demand for humanoid robots is driving the adoption of axial flux motors, which are expected to see significant growth in production and application, particularly in the robotics field [4][7]

Core Insights - The report highlights that geopolitical tensions, particularly the escalation of the US-Iran conflict, are significantly impacting global asset prices and increasing risk aversion, although the direct impact on the Chinese economy is manageable [4][6] - It emphasizes the strengthening of mid-cap blue-chip stocks as a market style, suggesting that investment opportunities will concentrate on key sectors such as critical minerals, chemicals, energy, and agriculture, as well as technological breakthroughs representing new productive forces [4][6] - The report notes that rising commodity prices, driven by geopolitical factors, are expected to affect the agricultural sector, with a confirmed upward trend in grain prices and favorable fundamentals for planting and seed industries [4][6] Market Strategy - The report suggests maintaining a focus on mid-cap blue-chip stocks while being mindful of market rhythms, indicating that the current market environment is characterized by a strong oscillation pattern [4][6] - It recommends specific ETFs related to mid-cap blue-chip stocks and cash flow [4][6] Industry Strategy - The agricultural sector is highlighted as having growth potential due to geopolitical disturbances leading to price increase expectations, with domestic agricultural companies likely to expand their growth limits through international markets [4][6] - The report identifies specific agricultural companies as potential investment targets, including Hainan Rubber, Longping High-Tech, Muyuan Foods, and others [4][6] Thematic Strategy - The report discusses the recent policy initiatives from six departments aimed at promoting the comprehensive utilization of photovoltaic components, which is expected to create development opportunities in the solar industry [4][6] - It mentions specific ETFs related to the photovoltaic sector that could benefit from these developments [4][6]

Group 1 - The report emphasizes that geopolitical disturbances and tariff negotiations are reinforcing the price increase logic for mid-cap blue chips, particularly in cyclical sectors such as non-ferrous metals, chemicals, and agriculture [7][10][34] - The recent geopolitical tensions, including the U.S. tariff disputes and the situation in Iran, have significantly supported precious metal prices, indicating potential price increases for strategic metals [10][12][15] - The report highlights the establishment of a national unified electricity market in China, which is expected to enhance the multi-dimensional value of electricity resources, with a timeline for market implementation set for 2027 [12][15] Group 2 - The real estate market shows stable trends during the Spring Festival, but the cyclical turning point remains to be observed, with expectations of policy easing and improvements in core city markets [13][15][34] - Consumer demand is diversifying, with increased foot traffic during the Spring Festival indicating a shift towards a consumption-driven growth model, supported by technological advancements and high levels of openness [14][15] - The report notes that mid-cap blue chips present a favorable risk profile, with overall market risks being manageable despite some fluctuations in short-term sentiment across various indices [16][34] Group 3 - The report identifies a trend of short-term volatility in hot sectors, with mid-cap blue chips showing resilience, while other sectors like basic chemicals and power grid equipment maintain stable medium-term uncertainties [21][25][31] - The analysis of trading behavior indicates a shift from strong trends to fluctuations in previously high-performing sectors, with only the power equipment sector maintaining its trend [21][25][31] - The report suggests that the overall market sentiment is gradually improving, with mid-cap indices showing slight recoveries in short-term emotions, while uncertainties in the mid-term remain relatively stable [16][25][34]