Report Industry Investment Rating No information provided in the content Core Viewpoints of the Report - The Middle East situation remains tense and complex, with the conflict entering a costly war of attrition. The risk of financial market volatility persists, but the direct impact on the Asian economy may gradually weaken as Asian vessels gain passage through the Strait of Hormuz and oil prices decline. The market is in a period of repeated fluctuations [3][11][12]. - In terms of asset allocation, it is recommended to focus on three main lines: sectors driven by domestic policies and in an upward industrial cycle, such as power grid equipment and lithium - battery materials; technology tracks with long - term growth potential and relatively low valuations, including computing infrastructure, semiconductor equipment and materials; and low - valuation value sectors like coal, chemicals, and finance. In the short term, it is advisable to control positions and seize structural opportunities while waiting for external risks to become clearer [3][12]. Summary by Relevant Catalogs 1. Weekly Market Observation 1.1. Equity Market Review and Observation - Last week (2026.03.23 - 2026.03.27), the A - share market was under short - term pressure due to external disturbances. The market adjusted significantly in the first half of the week and gradually recovered in the second half, with increased trading activity. The average daily trading volume of the entire A - share market was 21,093 billion yuan, a decrease compared to the previous week [11]. - The market hotspots were concentrated in sectors driven by fundamental improvements or external events. The top - performing industries included basic chemicals, non - ferrous metals, public utilities, and pharmaceutical biology. Innovative drugs and lithium - battery new energy were the leading sectors throughout the week [11]. - The Middle East situation continued to evolve in a highly tense and complex manner. The conflict has entered a costly war of attrition, and there is a risk of the region falling into an all - out melee [11]. - In the short term, the Iran - US conflict may lead to repeated attacks before April 6, bringing significant volatility to the financial market. However, the direct impact on the Asian economy may gradually weaken [3][12]. 1.2. Pan - Fixed - Income Market Review and Observation - Last week (2026.03.23 - 2026.03.27), the bond market oscillated and recovered. The yields of 1 - year, 10 - year, and 30 - year treasury bonds decreased by 0.50BP, 1.27BP, and 3.84BP respectively, to 1.25%, 1.82%, and 2.35% [4][13]. - The US Treasury yield curve steepened. The 1 - year US Treasury yield decreased by 3BP to 3.77%, the 2 - year yield remained flat, and the 10 - year yield increased by 5BP to 4.44% [14]. - The CSI REITs Total Return Index fell 0.83% last week, with warehousing logistics and industrial parks among the sectors with the largest declines. In the primary market, 4 new public REITs made progress [14]. 2. Fund Index Performance Tracking 2.1. Equity Strategy Theme - Based Index - **Active Equity Fund Selection**: The index selects 15 funds each period, with equal - weight allocation. The core positions select active equity funds based on performance competitiveness and style stability, and the style distribution is roughly balanced according to the CSI Equity - Oriented Fund Index [18]. - **Value - Oriented Equity Fund Selection**: The index includes both deep - value and quality - value styles. It selects 10 funds of deep - value, quality - value, and balanced - value styles based on multi - period style classification [18]. - **Balanced Equity Fund Selection**: The index selects 10 relatively balanced and value - growth style funds based on multi - period style classification. Fund managers in this style balance the valuation and growth of individual stocks and consider cost - effectiveness at the industry level [21]. - **Growth - Oriented Equity Fund Selection**: The index aims to capture the performance and valuation double - click opportunities of high - growth companies and selects 10 funds of active - growth, quality - growth, and balanced - growth styles based on multi - period style classification [23][25]. - **Pharmaceutical Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the constituent stocks of the representative index (CITIC Pharmaceutical). It constructs an evaluation system and selects 15 funds to form the index [27]. - **Consumer Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the constituent stocks of representative consumer - related indices. It constructs an evaluation system and selects 10 funds to form the index [30]. - **Technology Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the constituent stocks of representative technology - related indices. It constructs an evaluation system and selects 10 funds to form the index [34]. - **High - end Manufacturing Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the constituent stocks of representative high - end manufacturing indices. It constructs an evaluation system and selects 10 funds to form the index [37]. - **Cyclical Equity Fund Selection**: The index selects funds based on the intersection market value ratio of fund equity holdings and the constituent stocks of representative cyclical indices. It constructs an evaluation system and selects 5 funds to form the index [39]. 2.2. Other Fund Indices - **Money - Market Enhancement Index**: The money - market enhancement strategy index aims for liquidity management, pursues a curve that outperforms money - market funds, and is mainly configured with money - market funds and inter - bank certificate of deposit index funds. The performance benchmark is the CSI Money - Market Fund Index [45]. - **Pure - Bond Index**: - **Short - Term Bond Fund Selection**: The index aims for liquidity management and selects 5 funds with stable long - term returns, strict回撤 control, and significant absolute return capabilities. The performance benchmark is a combination of the short - term pure - bond fund index and the common money - market fund index [47]. - **Medium - and Long - Term Bond Fund Selection**: The index invests in medium - and long - term pure - bond funds, aiming for stable returns while controlling回撤. It selects 5 funds that balance coupon strategies and band - trading operations and adjusts the duration and the ratio of credit - bond funds and interest - rate - bond funds according to market conditions [50]. - **Fixed - Income Plus Index**: - **Low - Volatility Fixed - Income Plus Selection**: The index has an equity central position of 10%, selects 10 funds with an equity central position (considering convertible bond and stock positions) of less than 15% in the past three years and recently. The performance benchmark is a combination of the CSI 800 Index and the ChinaBond New Composite Full - Price Index [53]. - **Medium - Volatility Fixed - Income Plus Selection**: The index has an equity central position of 20%, selects 5 funds with an equity central position between 15% - 25% in the past three years and recently. The performance benchmark is a combination of the CSI 800 Index and the ChinaBond New Composite Full - Price Index [55]. - **High - Volatility Fixed - Income Plus Selection**: The index has an equity central position of 30%, selects 5 funds with an equity central position between 25% - 35% in the past three years and recently. The performance benchmark is a combination of the CSI 800 Index and the ChinaBond New Composite Full - Price Index [56]. - **Other Pan - Fixed - Income Indices**: - **Convertible Bond Fund Selection**: The index selects 5 convertible - bond funds based on investment proportion requirements and an evaluation system considering fund product, fund manager, and fund company dimensions [61]. - **QDII Bond Fund Selection**: The index selects 6 QDII bond funds with stable returns and good risk control based on credit and duration conditions [64]. - **REITs Fund Selection**: The index selects 10 REITs funds with stable operation, reasonable valuation, and certain elasticity based on the underlying asset types [65].

Group 1: Innovation in ETF Products - WisdomTree launched two moving average strategy products that compare stock index closing prices with the 200-day moving average, investing in stocks when the ratio exceeds 1.01 for two consecutive days and in short-term government bonds when it falls below 1.01 [5][6] - A total of 17 new ETF products were launched in the US last week, including traditional stock selection products and alternative strategies [5][6] Group 2: ETF Fund Flows - Domestic stock products in the US continued to experience outflows, while international stock products saw increased inflows, and bond products maintained inflows [7][8] - The Vanguard S&P 500 ETF (VOO) had a net inflow of $163 million, while the iShares Core S&P 500 ETF (IVV) experienced a significant outflow of $475 million [7][8] Group 3: ETF Performance - US VIX index-related products have shown significant gains this year, with the highest-performing 2x products yielding over 50% [10] - The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) has a year-to-date return of 30.15%, while the 2x Long VIX Futures ETF (UVIX) has returned 50.61% [10] Group 4: Public Fund Flows - As of January 2026, the total amount of non-money market public funds in the US reached $24.07 trillion, an increase of $0.43 trillion from December 2025 [11] - During the week of February 25 to March 4, domestic stock funds saw outflows of $10.8 billion, while international stock products experienced outflows exceeding $10 billion [11]

Group 1: Innovation in U.S. ETFs - WisdomTree launched two moving average strategy products that compare stock index closing prices with the 200-day moving average, investing in stocks when the ratio exceeds 1.01 for two consecutive days and shifting to short-term government bonds when it falls below 1.01 for two consecutive days [7][8]. - A total of 17 new products were launched in the U.S. last week, including traditional stock selection products and alternative strategies [7]. Group 2: U.S. ETF Fund Flows - Domestic equity products in the U.S. continued to experience outflows, while international equity products saw increased inflows. Bond products maintained inflows, and commodity ETFs continued to see outflows [10]. - The SPY and SPYM ETFs from State Street had significant inflows, but still lagged behind Vanguard's VOO, while IVV experienced substantial outflows [10]. - The top inflow ETF was Vanguard's VOO with a net inflow of $163 million, while the iShares IVV saw a net outflow of $475 million [10]. Group 3: Performance of U.S. ETFs - U.S. ETFs related to the VIX index showed significant gains, with the highest-performing 2x products yielding over 50% this year, although these products currently have assets under $1 billion [13]. - The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) had a year-to-date return of 30.15%, while the 2x Long VIX Futures ETF (UVIX) achieved a return of 50.61% [13]. Group 4: Recent Trends in U.S. Mutual Fund Flows - As of January 2026, the total amount of non-money market mutual funds in the U.S. was $24.07 trillion, an increase of $0.43 trillion from December 2025 [15]. - During the week of February 25 to March 4, domestic equity funds experienced outflows of $10.8 billion, while international equity products saw outflows exceeding $10 billion [15].

Report Industry Investment Rating No information regarding the report industry investment rating is provided in the given content. Core Viewpoints - From March 9th to March 13th, 2026, the major indices of the equity market showed mixed performance. The ChiNext Index had the largest increase, rising 2.51%. Among the 31 Shenwan primary industries, 10 industries rose, with the top five gainers being coal, electrical equipment, building decoration, public utilities, and banking; the top five decliners were national defense and military industry, petroleum and petrochemicals, comprehensive, non-ferrous metals, and media [1][12]. - The performance of the equity market remained sluggish. Among them, quantitative funds had the smallest decline, with an average drop of 0.19% and a positive return ratio of 39.59%; fixed - income + funds dropped an average of 0.19% with a positive return ratio of 31.92%; pure - bond funds remained at the same level with a positive return ratio of 64.84%; pension target FOFs rose an average of 0.22% with a positive return ratio of 79.40%. Additionally, QDII funds dropped an average of 0.18% with a positive return ratio of 42.23% [2][30]. - The overall position of active equity funds on March 13, 2026, was 77.72%, a decrease of 2.75 pct compared to the previous period. The industries with the highest position - increasing amplitude were building decoration, transportation, and beauty care; the industries with the highest position - decreasing amplitude were comprehensive, electronics, and petroleum and petrochemicals [2][36][37]. - Last week, the overall ETF market had a net capital outflow of 18.769 billion yuan. Structurally, bond - type ETFs had the largest net outflow, reaching 9.938 billion yuan. Power, free cash flow, semiconductor and other sectors showed a net capital inflow, while broad - based indices such as CSI A500, CSI 300, ChiNext Index, and CSI Small - cap 500 Index were the main capital outflow varieties [3][43]. - Last week, 40 new funds were issued, 5 fewer than the previous period; 30 new funds were established, 18 more than the previous period. New funds raised a total of 3.6088 billion yuan, an increase of 2.2624 billion yuan compared to the previous period [4][48][55]. Summary by Relevant Catalogs 1. Market Review 1.1 Domestic Market Situation - From March 9th to March 13th, 2026, the major indices of the equity market showed mixed performance. The ChiNext Index had the largest increase, rising 2.51%. Among the 31 Shenwan primary industries, 10 industries rose, with the top five gainers being coal, electrical equipment, building decoration, public utilities, and banking; the top five decliners were national defense and military industry, petroleum and petrochemicals, comprehensive, non - ferrous metals, and media. In the bond market, the ChinaBond Composite Full - Price Index dropped 0.13%, the total full - price indices of ChinaBond Treasury bonds, financial bonds, and credit bonds dropped between 0.34% and 0.02%, and the CSI Convertible Bond Index dropped 1.10%. In the commodity market, the Nanhua Commodity Index rose 5.18% [12]. 1.2欧美及亚太市场情况 - Last week, all major indices in the European, American, and Asia - Pacific markets declined. In the US stock market, the S&P 500 Index dropped 2.72%, the Dow Jones Industrial Average dropped 1.86%, and the Nasdaq Index dropped 1.26%. In the European market, the French CAC40 dropped 1.03% and the German DAX dropped 0.61%. In the Asia - Pacific market, the Hang Seng Index dropped 1.13% and the Nikkei 225 dropped 3.24% [18]. 1.3 Market Valuation Situation - Last week, the valuation quantiles of most major market indices declined. In terms of the historical quantiles of price - to - earnings ratio, the CSI 300 had the highest increase, rising 0.1 pct; in terms of the historical quantiles of price - to - book ratio, the CSI 300 also had the highest increase, at 0.2 pct. Among industries, the top five industries with the highest historical quantiles of price - to - earnings ratio of the Shenwan primary index were real estate, comprehensive, electronics, chemical industry, and building materials. The price - to - earnings ratio quantile of real estate remained at a high level, and the price - to - earnings ratio quantile of the comprehensive industry reached 91.8%. The five industries with lower historical quantiles of price - to - earnings ratio were non - bank finance, food and beverage, agriculture, forestry, animal husbandry and fishery, beauty care, and pharmaceutical biology. The valuation of the non - bank finance industry was close to its historical low since 2013 [21]. 2. Active - type Public - offering Fund Situation Market Hotspots - On March 13th, the CSRC issued the "Content and Format Guidelines for Regular Reports of Public - offering Securities Investment Funds (No. 2)", which will be implemented on May 1st, 2026. The main revisions include integrating similar disclosure items in annual, semi - annual, and quarterly reports, putting forward targeted and personalized disclosure requirements, simplifying and adjusting some information disclosure requirements, and clarifying that the Asset Management Association of China will formulate XBRL templates [28]. - On March 13th, the Asset Management Association of China issued a notice on publicly soliciting opinions on the "Implementation Rules for Information Disclosure of Private Investment Funds (Exposure Draft)" and the "Template for Important Information Disclosure of Private Investment Funds (Exposure Draft)". The rules will be implemented on September 1st, 2026, and mainly include clarifying the scope of application, detailed disclosure requirements for different types of private funds, requirements for establishing an information disclosure management system, and the self - regulatory responsibilities of the association [29]. Fund Performance - The performance of the equity market remained sluggish. Quantitative funds had the smallest decline, with an average drop of 0.19% and a positive return ratio of 39.59%; fixed - income + funds dropped an average of 0.19% with a positive return ratio of 31.92%; pure - bond funds remained at the same level with a positive return ratio of 64.84%; pension target FOFs rose an average of 0.22% with a positive return ratio of 79.40%. Additionally, QDII funds dropped an average of 0.18% with a positive return ratio of 42.23% [2][30]. - The top three performers of common stock - type funds last week were Huabao Green Leading Stock (10.19%), Harvest Smart Auto Stock (9.16%), and Harvest New Energy and New Materials Stock A (8.12%); the top three performers of hybrid funds were Qianhai United Yonglong Hybrid A (9.79%), Shenwan Hongyuan Xinyuan New Energy Vehicle Theme Flexible Allocation Hybrid A (9.08%), and Huabao Event - Driven Hybrid A (8.45%); the top three performers of bond - type funds were ICBC Convertible Bond (1.29%), ICBC Balance Return 6 - month Holding - period Bond A (0.68%), and Boshi Hengxiang Bond A (0.55%) [31]. - As of last week, the top three performers of common stock - type funds this year were Guoshou Anbao Digital Economy Stock Initiated A (39.90%), Guoshou Anbao Industrial Upgrade Stock Initiated A (36.23%), and Qianhai Kaiyuan Value Strategy Stock (27.76%); the top three performers of hybrid funds were GF Visionary Smart Selection Hybrid A (51.37%), Western Lide New Power Hybrid A (50.27%), and Western Lide Strategy Preferred Hybrid A (47.45%); the top three performers of bond - type funds were ICBC Tianhui Bond A (14.26%), ICBC Convertible Bond Preferred Bond A (11.37%), and Huashang Ruixin Regularly - Open Bond (8.63%) [34]. Position Changes - The industries with the highest position - increasing amplitude of active equity funds last week were building decoration, transportation, and beauty care; the industries with the highest position - decreasing amplitude were comprehensive, electronics, and petroleum and petrochemicals. The overall position of active equity funds on March 13, 2026, was 77.72%, a decrease of 2.75 pct compared to the previous period [2][36][37]. 3. ETF Fund Situation - Last week, the overall ETF market had a net capital outflow of 18.769 billion yuan. Structurally, bond - type ETFs had the largest net outflow, reaching 9.938 billion yuan. The average daily trading volume of the overall ETF market last week reached 543.055 billion yuan, the average daily trading volume reached 191.407 billion shares, and the average daily turnover rate reached 8.53%. Power, free cash flow, semiconductor and other sectors showed a net capital inflow, while broad - based indices such as CSI A500, CSI 300, ChiNext Index, and CSI Small - cap 500 Index were the main capital outflow varieties. The CSI A500 Index had a capital outflow of nearly 6 billion yuan, and the Sci - tech Innovation Bond Index also had a capital outflow of nearly 4 billion yuan [3][39][43]. 4. Fund Issuance Situation Statistics - Last week, 40 new funds were issued in China, 5 fewer than the previous period; among them, there were 9 active equity - biased funds and 16 passive index - type funds. The 16 passive index - type funds were all stock - type, mainly tracking indices such as CSI Hong Kong Stock Connect 50, CSI All - Index Agriculture, Forestry, Animal Husbandry and Fishery, CSI Livestock and Poultry Breeding Industry, and China Securities Hong Kong Stock Connect Technology. Currently, the issuance share of active equity funds is still at a historical low, but there has been an obvious upward trend since this year. 30 new funds were established last week, 18 more than the previous period. New funds raised a total of 3.6088 billion yuan, an increase of 2.2624 billion yuan compared to the previous period. Among them, the Yongying Ruijian Growth Hybrid A managed by Li Wenbin had the largest fundraising scale, approximately 586.7 million yuan [48][55].

1. Report Industry Investment Rating No information provided in the report. 2. Core View of the Report - In the US ETF market, bond products are continuously being issued, international equity products have more inflows than domestic equity products, and cross - border products have excellent performance. In the US ordinary public fund market, the total amount of non - monetary public funds increased in January 2026, and bond products maintained inflows of over $10 billion in the week of February 11 - 18, 2026 [1]. 3. Summary by Directory 3.1 US ETF Innovation Products: Continuous Issuance of Bond Products - Last week, there were 22 new products issued in the US, with a relatively large number of bond products. State Street issued a series of high - yield bond target - maturity products, Chesapeake issued a bond product based on a trend - following strategy, and Invesco issued a series of 4 products covering MBS, treasury duration rotation strategy, hybrid corporate bonds, and a more flexible comprehensive fixed - income product [1][6][7]. - Innovator issued the Managed Buffer series of products, managed by sub - manager Parametric, with no upper limit on returns, an upside participation rate of 80 - 90%, and a target quarterly downside protection range of 10% (actual range 10 - 14%) [6]. - Exchange Traded Concepts and II Technology jointly issued a product based on industry allocation and volatility control strategies, dynamically under - or over - weighting 11 GICS industry classifications and adjusting the overall equity asset position according to market risk levels [7]. - Pictet issued an AI - strategy product last week, mainly using machine - learning methods to enhance the US stock pool [7]. 3.2 US ETF Dynamics 3.2.1 US ETF Funds: International Equity Products Have More Inflows than Domestic Equity Products - In the past week, the inflows of US domestic equity and bond products were stable. International equity products had higher inflows than domestic equity products, and commodity ETFs had significant inflows. Vanguard's S&P 500 ETF had the highest inflow, cross - border products in developed and emerging markets had obvious inflows, and gold and silver ETFs also had significant inflows. State Street's S&P 500 ETF, Nasdaq 100 ETF, and financial products had the largest outflows [1][9][12]. - Vanguard's products had relatively stable fund inflows, and State Street's gold ETF returned to stable inflows last week [13]. 3.2.2 US ETF Performance: Cross - border Products Perform Well - From January to February 2026, the S&P 500 rose less than 1%, but cross - border products generally performed well. Vanguard's largest developed - market ETF rose more than 12%, and BlackRock's emerging - market product rose 14% [1][14]. 3.3 Recent US Ordinary Public Fund Fund Flows - In January 2026, the total amount of non - monetary public funds in the US was $24.07 trillion, an increase of $0.43 trillion compared to December 2025. In January, the S&P 500 rose 1.37%, and the scale of US domestic equity products increased by 1.23%, with a relatively small impact from redemptions [1][18]. - In the week of February 11 - 18, 2026, US domestic equity funds had an outflow of $80.74 billion, which was slightly narrowed. The outflow of international equity products also decreased to around $3 billion, while bond products maintained inflows of over $10 billion [1][18].

Group 1 - The article discusses the recent developments in the investment banking sector, highlighting the impact of economic conditions on deal-making activities [1] - It emphasizes the importance of adapting strategies to navigate the changing market landscape, particularly in light of rising interest rates and inflation [1] - The report indicates a decline in mergers and acquisitions (M&A) activity, with a significant drop of approximately 30% year-over-year in the first half of the year [1] Group 2 - The article notes that companies are increasingly focusing on cost-cutting measures and operational efficiencies to maintain profitability during challenging times [1] - It mentions that investment banks are diversifying their service offerings to include advisory roles in sustainability and technology sectors, reflecting evolving client needs [1] - The report highlights the competitive landscape, with firms vying for market share amid reduced transaction volumes, leading to potential consolidation in the industry [1]

Core Viewpoint - The article outlines the selection directions and application guidelines for provincial and ministerial-level research topics by the China Securities Regulatory Commission (CSRC), emphasizing the importance of high-quality development and risk prevention in the capital market [3][4]. Group 1: Guiding Principles - The research should align with Xi Jinping's thoughts and the spirit of the 20th National Congress, focusing on risk prevention, regulatory strengthening, and promoting high-quality development in the capital market [3]. - The aim is to enhance the inclusiveness and adaptability of the capital market system during the 14th Five-Year Plan period, addressing significant issues through collaborative research [3]. Group 2: Research Topics - Key research topics include improving corporate governance under the new Company Law, binding mechanisms between public funds and investor interests, and innovations in pension financial investment mechanisms [4][5]. - Other topics cover the impact of AI on investor behavior, enhancing regulatory capabilities in an open environment, and improving pricing efficiency in the capital market [4][5]. Group 3: Application Conditions - Research topics should be led by one or two units, with diverse participation from top think tanks, universities, and market institutions, excluding individual applicants [5]. - Leading units must possess the necessary talent and resources to complete the research, including organizing the research team and ensuring confidentiality of sensitive content [5]. Group 4: Application Timeline - The deadline for submitting research proposals is March 31, 2026, with specific submission requirements outlined for clarity [6]. - Applicants must ensure the quality of submissions and avoid duplicate applications for similar topics [6]. Group 5: Management Arrangements - The typical research duration is 6-12 months, with a maximum extension of 6 months allowed under specific circumstances [7]. - The CSRC's designated research institution will manage the progress and quality of the research projects, conducting regular checks and evaluations [8]. Group 6: Other Matters - All research directions do not represent regulatory guidance from the CSRC but serve as a reserve for research [9].

Macro and Strategy Research - The report highlights that public fiscal expenditure in 2025 focused on livelihood, technology, and environmental protection, with total public budget revenue at 21,604.5 billion yuan, a year-on-year decrease of 1.7%, while expenditure reached 28,739.5 billion yuan, an increase of 1% [2] - The government fund budget revenue was 5,770.4 billion yuan, down 7% year-on-year, while expenditure increased by 11.3% to 11,287.4 billion yuan [2] - Public fiscal income showed a negative growth primarily due to non-tax revenue, while tax revenue achieved positive growth, with major tax categories (VAT, corporate income tax, and personal income tax) transitioning from negative to positive growth [3] - Public fiscal expenditure in the livelihood sector accounted for over 38% of total expenditure, significantly higher than the average of the past five years, with a notable increase in technology spending [4] - The completion ratio for the national general public budget revenue was 98.3%, lower than the average of the past five years, while the expenditure completion ratio was 96.8% [4] Manufacturing Sector Analysis - The manufacturing PMI for January 2026 was reported at 49.3%, indicating a contraction in manufacturing activity, with both production and new orders indices declining [8] - The production index fell by 1.1 percentage points to 50.6%, while the new orders index dropped by 1.6 percentage points to 49.2%, reflecting insufficient effective demand [9] - The non-manufacturing business activity index also decreased to 49.4%, with the construction sector experiencing a significant drop due to seasonal factors [10] - The comprehensive PMI output index fell to 49.8%, entering the contraction zone, primarily due to the decline in both manufacturing and non-manufacturing sectors [10] Fund Research - The report notes that the public fund market experienced significant outflows, with a net outflow of 298.1 billion yuan from the ETF market, particularly from stock ETFs [12] - The average performance of equity funds showed a decline, with quantitative funds experiencing the largest drop of 1.10% [13] - New fund issuance increased, with 45 new funds launched, raising a total of 48.27 billion yuan, indicating a slight recovery in market interest [14]

Report Industry Investment Rating No investment rating for the industry is provided in the report. Core Viewpoints of the Report - In the market review from January 26 to January 30, 2026, most major equity market indices declined, with the Small and Medium - sized Board Index experiencing the largest drop of 3.78%. Among the 31 Shenwan primary industries, 10 industries rose, with the top five gainers being petroleum and petrochemicals, communications, coal, non - ferrous metals, and agriculture, forestry, animal husbandry, and fishery; the top five decliners were national defense and military industry, electrical equipment, automobiles, computers, and comprehensive industries [1][12]. - In the public fund market, the CSRC solicited public opinions on the "Content and Format of Regular Reports of Publicly Offered Securities Investment Funds" and the Asset Management Association of China officially established the performance comparison benchmark element library for public funds. In terms of fund performance, quantitative funds in equity funds had the largest decline, with an average drop of 1.10% and a positive return ratio of 24.74%; fixed - income + funds averaged a 0.20% decline with a positive return ratio of 35.23%; pure - bond funds averaged a 0.03% increase with a positive return ratio of 84.81%; pension target FOFs averaged an 0.81% increase with a positive return ratio of 94.97%. QDII funds averaged a 0.77% increase with a positive return ratio of 63.95%. Actively managed equity funds increased their positions in non - ferrous metals, petroleum and petrochemicals, and food and beverages last week, while reducing positions in pharmaceutical biology, electronics, and household appliances. As of January 30, 2026, the position of actively managed equity funds was 73.88%, a decrease of 1.07 pct from the previous period [1][2]. - In the ETF market, last week, the overall ETF market had a net capital outflow of 298.095 billion yuan, with the outflow scale narrowing slightly compared to the previous period. Stock - type ETFs had the largest net outflow of 317.982 billion yuan. The average daily trading volume of the overall ETF market reached 635.407 billion yuan, the average daily trading volume was 225.627 billion shares, and the average daily turnover rate was 9.11%. Chemical, gold, non - ferrous metals, and convertible bond sectors were the main capital inflow varieties, while broad - based indices such as the CSI 300, CSI 1000, SSE 50, and CSI Small - cap 500 continued to see large - scale capital outflows, with the capital outflow of the CSI 300 index exceeding 240 billion yuan [3][50]. - Regarding fund issuance, last week, 45 new funds were issued, 5 more than the previous period; 47 new funds were established, 5 more than the previous period. New funds raised a total of 48.272 billion yuan, an increase of 3.818 billion yuan from the previous period [4]. Summary by Relevant Catalogs 1. Market Review 1.1 Domestic Market Conditions - From January 26 to January 30, 2026, most major equity market indices declined, with the Small and Medium - sized Board Index dropping 3.78%, the largest decline. Among the 31 Shenwan primary industries, 10 industries rose, and the top five gainers and decliners were as mentioned above. In the bond market, the ChinaBond Composite Full - Price Index remained unchanged, while the ChinaBond Treasury Bond, Financial Bond, and Credit Bond Total Full - Price Indices fluctuated from a 0.03% decline to a 0.05% increase, and the CSI Convertible Bond Index dropped 2.61%. In the commodity market, the Nanhua Commodity Index rose 2.60% [12]. 1.2 European, American and Asian - Pacific Market Conditions - Last week, most major indices in European, American, and Asian - Pacific markets declined. In the US stock market, the S&P 500 index rose 0.21%, the Dow Jones Industrial Average fell 0.39%, and the Nasdaq Composite fell 0.17%. In the European market, the French CAC40 fell 0.20% and the German DAX fell 1.45%. In the Asian - Pacific market, the Hang Seng Index rose 2.38% and the Nikkei 225 fell 0.97% [20]. 1.3 Market Valuation Conditions - Last week, the valuation quantiles of most major market indices declined. In terms of the historical quantiles of price - to - earnings ratios, the SSE 50 had the highest increase of 5.7 pct. In terms of the historical quantiles of price - to - book ratios, the SSE 50 also had the highest increase of 2.5 pct. Among industries, the top five industries with the highest historical quantiles of price - to - earnings ratios in the Shenwan primary index were real estate, electronics, chemicals, commercial trade, and comprehensive industries. The lowest five were non - bank finance, agriculture, forestry, animal husbandry, and fishery, food and beverages, beauty care, and pharmaceutical biology [23]. 2. Active Public Fund Conditions Market Hotspots - The CSRC solicited public opinions on the "Content and Format of Regular Reports of Publicly Offered Securities Investment Funds", integrating and revising relevant regulations to strengthen industry transparency and protect the legitimate rights and interests of fund share - holders. The Asset Management Association of China also solicited industry opinions on the "XBRL Template for Information Disclosure of Securities Investment Funds", which requires adding long - term performance data and other information [31][32]. - The Asset Management Association of China officially established the performance comparison benchmark element library for public funds, including 155 indices in total, with adjustments in the number of indices and operation rules [33]. Fund Performance - As mentioned above, different types of funds had different performance, and the top - performing funds in each category last week and this year were also listed [39][40][43]. Industry Positions of Actively Managed Equity Funds - Last week, actively managed equity funds increased their positions in non - ferrous metals, petroleum and petrochemicals, and food and beverages, and reduced positions in pharmaceutical biology, electronics, and household appliances. As of January 30, 2026, the position of actively managed equity funds was 73.88%, a decrease of 1.07 pct from the previous period [45][46]. 3. ETF Fund Conditions - Last week, the overall ETF market had a net capital outflow of 298.095 billion yuan, with stock - type ETFs having the largest net outflow of 317.982 billion yuan. The average daily trading volume of the overall ETF market was 635.407 billion yuan, the average daily trading volume was 225.627 billion shares, and the average daily turnover rate was 9.11%. Chemical, gold, non - ferrous metals, and convertible bond sectors were the main capital inflow varieties, while broad - based indices such as the CSI 300, CSI 1000, SSE 50, and CSI Small - cap 500 continued to see large - scale capital outflows [3][50]. 4. Fund Issuance Statistics - Last week, 45 new funds were issued, 5 more than the previous period, including 24 actively managed equity funds and 12 passive index funds. The 12 passive index funds were all stock - type, mainly tracking indices such as the SZSE GEM New Energy Vehicle Battery Index, CSI Industrial Non - ferrous Metals Theme Index, and CSI Photovoltaic Industry Index. 47 new funds were established, 5 more than the previous period, and new funds raised a total of 48.272 billion yuan, an increase of 3.818 billion yuan from the previous period [4][58][63].

Group 1: Federal Reserve and Currency Movements - The Federal Reserve maintained the federal funds rate target range at 3.5% to 3.75%, ending a three-rate cut cycle, with a focus on achieving full employment and a 2% inflation target [1][14] - The Chinese yuan's midpoint exchange rate broke the 7.0 mark against the US dollar for the first time in two and a half years, driven by a weak dollar and seasonal demand for currency settlement [1][15] Group 2: Company Developments and Financial Performance - Huadong Heavy Machinery expects a significant decline in net profit for 2025, projecting a decrease of 39.05% to 59.36% due to the divestment of its profitable CNC machine tool business and losses from its newly acquired chip subsidiary [1][18] - Agricultural University Technology listed on the Beijing Stock Exchange, becoming Shandong's first A-share company of the year, with its stock price surging by 111.56% on the first day despite concerns over its revenue and profit trends [1][20] - Seagate Technology's stock surged over 16% to a record high following a strong earnings report, with significant revenue and earnings per share exceeding market expectations [1][20] - SK Hynix reported a nearly 1.2 times increase in net profit for the previous year, driven by the AI storage market, and expects continued growth in storage demand [1][20] Group 3: Legal and Regulatory Issues - Shenzhen Water Bay Jewelry faced withdrawal difficulties, with thousands of investors unable to cash out, raising concerns about illegal gold betting practices [1][16] - Sunflower's major asset restructuring plan was terminated due to an investigation by the Securities Regulatory Commission, leading to significant losses for investors [1][21] - Dike Co., a leader in photovoltaic silver paste, initiated patent infringement lawsuits against two companies, seeking a total of 4 billion yuan in damages [1][21] Group 4: Market Trends and Consumer Behavior - The price of international spot gold reached a new high, exceeding $5,300 per ounce, prompting major jewelry brands to adapt their business strategies to focus on design and service rather than raw material value [1][23] - The price of Flying Moutai surged to 1,600 yuan per bottle, driven by seasonal demand and supply constraints, leading to a secondary market for reselling [1][24] - Industrial Fulian, an AI giant, projected a significant increase in net profit for 2025, driven by strong growth in cloud computing and AI server revenues [1][25]