Core Viewpoint - The issuance of active equity funds in China has rebounded significantly this year, with a total of 276 new funds established and a total fundraising scale of 141.068 billion yuan, representing a year-on-year increase of 132.25% [2][4]. Group 1: Active Equity Fund Issuance - A total of 276 active equity funds were established this year, with a fundraising scale of 141.068 billion yuan, marking a 132.25% year-on-year growth [4][5]. - There were 73 active equity funds that ended their fundraising early, indicating strong demand, with several funds being sold out in just one day [5]. - The rebound in active equity fund issuance is attributed to the recovery of the A-share market, improvements in corporate earnings, and supportive government policies aimed at encouraging long-term investments in equity markets [5]. Group 2: Passive Index Product Issuance - The issuance of passive index products has also surged, with over 760 new index funds established this year, raising over 550 billion yuan, reflecting a year-on-year growth of 89.36% in number and 24% in scale [6][7]. - The market is currently experiencing a phase where both active equity and passive index products are growing, with a diversification of investment tools available to investors [7]. - The future performance of active equity funds will depend on their ability to consistently generate returns that exceed market performance and their differentiation from passive products [7].

Core Viewpoint - The Beijing Stock Exchange (BSE) has experienced a structural bull market in 2024, with the BSE 50 Index achieving a year-to-date increase of 39.45%, leading all major market indices [1][5]. Group 1: Market Performance - The BSE 50 Index has become a significant indicator of the market, comprising 50 representative companies with relatively small average market capitalization, highlighting many "specialized and innovative" small giants [5]. - The active management of BSE-themed funds has outperformed the index, with the Huaxia BSE Innovation Small and Medium Enterprises Selected Two-Year Open Fund (014283) achieving a net value growth rate of 72.16%, ranking third in the market [3][11]. Group 2: Market Drivers - A loose liquidity environment in China's financial market has provided ample "liquid capital," attracting funds to small-cap, high-growth companies on the BSE [6]. - The preference for small-cap stocks has increased during the early stages of economic recovery, with over 70% of BSE-themed funds outperforming the BSE 50 Index in the past three years [8]. Group 3: Investment Opportunities - The BSE remains an underappreciated source of alpha, with many quality companies yet to be fully discovered and priced, presenting significant value discovery opportunities for institutions with deep research capabilities [10][19]. - The Huaxia fund manager, Gu Xinfeng, emphasizes the importance of deep research and understanding of the market to capture long-term value, leveraging a unique understanding of the BSE and its companies [13][16]. Group 4: Future Outlook - The trading volume on the BSE has increased approximately 30 times over the past three years, indicating a significant improvement in trading ecology and liquidity [21]. - Continuous policy support aimed at enhancing the quality of listed companies and attracting long-term capital is expected to inject strong momentum into the market's long-term healthy development [22].