Investment Rating - The report maintains a "Positive" investment rating for the industry [10] Core Insights - The China Securities Regulatory Commission (CSRC) has solicited opinions on the "Guidelines for Performance Comparison Benchmarks of Publicly Raised Securities Investment Funds (Draft for Comments)" as of October 31, which aims to enhance the responsibility of fund managers and improve internal control mechanisms [2][7] - The guidelines consist of 21 articles divided into six chapters, focusing on general principles, benchmark standards, internal controls for managers, external constraints, supervision, and supplementary provisions [7] - The guidelines are expected to standardize performance comparison benchmarks for public funds, enhance the stability of public investment behaviors, and clarify product investment styles, ultimately guiding the industry back to its core mission of serving investors [14] Summary by Sections Guidelines Overview - The guidelines require fund managers to establish a comprehensive control mechanism for performance benchmarks, including selection, disclosure, monitoring, evaluation, correction, and accountability processes [14] - Decision-making for benchmark selection must be elevated to the management level, with management bearing primary responsibility for the representativeness and objectivity of the selected benchmarks [14] - An independent department is tasked with monitoring deviations from benchmarks, with the investment decision committee assessing the rationality of these deviations [14] External Responsibilities - The guidelines clarify the responsibilities of external institutions, such as custodians, emphasizing their supervisory roles [14] - Fund managers and sales institutions are required to present performance benchmarks alongside fund performance to facilitate investor comparisons [14] - Future evaluations and awards will consider benchmarks as a significant criterion, promoting a multi-layered defense mechanism around performance benchmarks [14] Benchmark Usage Standards - Benchmarks must accurately reflect the product's positioning and investment style, adhering to the investment scope, strategy, and proportions outlined in the fund contract [14] - Once selected, benchmarks cannot be changed arbitrarily, ensuring that products remain true to their stated objectives [14] - The calculation methods and data sources for benchmarks must be clear and transparent, with a reasonable compilation plan [14] Additional Provisions - The guidelines also address smooth transitions, the establishment of a benchmark library, and enhanced daily supervision [14] - Overall, the guidelines are expected to foster a more stable and clear investment style in the public fund sector, enhancing the value investment attributes of public funds and providing long-term stable returns for investors [14]

Report Summary 1. Report Industry Investment Rating No investment rating for the industry is provided in the report. 2. Core View - Today, the stock index first declined and then rebounded, with small and medium - cap stock indices breaking through the 30 - day moving average during the session, while large - cap stock indices were relatively resilient. Affected by the "Notice on Improving Duty - Free Shop Policies to Support and Boost Consumption", the Hainan Free Trade concept continued to lead the gains. [4] - Recently, the news has been relatively calm, and the market is mainly driven by capital games. There is a callback pressure on the stock index as some funds in previously high - flying sectors are more willing to take profits. However, due to strong signals of stabilizing the market, the downside space of the stock index is expected to be limited. [4] - In the short term, the stock index is expected to fluctuate. It is recommended to hold positions and wait and see. Attention should be paid to the US employment data to be released this week, as it may have a significant impact on the Fed's December interest - rate cut expectations. [4] 3. Summary by Related Catalogs Market Review - Today, the stock index first fell and then rose, with all indices closing up. For example, the CSI 300 index closed up 0.27%. The trading volume of the two markets decreased by 2106.62 billion yuan. In the futures index market, IF and IC declined with shrinking volume, IH remained flat, and IM rose with shrinking volume. [2] Important Information - The Ministry of Finance and the State Administration of Taxation issued an announcement on the tax policy for gold, which will be implemented from November 1, 2025, to December 31, 2027. This policy is expected to make the gold market's consumption and investment environment more transparent and healthy. [3] - The China Securities Regulatory Commission and the Asset Management Association of China solicited public opinions on the guidelines for the performance comparison benchmarks of public funds. The introduction of these two documents will promote the standardization of the performance comparison benchmarks of domestic public funds and strengthen the discipline of investment management. [3] Strategy Recommendation - It is recommended to hold positions and wait and see. [5] Futures Index Market Observation | | IF | IH | IC | IM | | --- | --- | --- | --- | --- | | Main contract intraday change (%) | - 0.04 | 0.00 | - 0.34 | 0.01 | | Trading volume (10,000 lots) | 11.5046 | 5.1158 | 14.0206 | 22.9133 | | Trading volume change from previous day (10,000 lots) | - 2.4816 | - 1.2191 | - 0.511 | - 2.4149 | | Open interest (10,000 lots) | 27.0097 | 9.6979 | 25.4358 | 36.2939 | | Open interest change from previous day (10,000 lots) | - 0.1034 | - 0.2629 | - 0.0107 | 0.0556 | [5] Spot Market Observation | Name | Value | | --- | --- | | Shanghai Composite Index change (%) | 0.55 | | Shenzhen Component Index change (%) | 0.19 | | Ratio of rising to falling stocks | 1.96 | | Trading volume of the two markets (billion yuan) | 21071.31 | | Trading volume change from previous day (billion yuan) | - 2106.62 | [7]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The report comprehensively presents macro - economic data, commodity investment trends, financial news, and stock market information. It shows that the economy has both positive and negative factors, such as the mixed performance of PMI data, the upward trend of some metal prices, and the complex situation in the energy and agricultural markets. At the same time, various policy regulations and market reforms are also underway, which will have an impact on different sectors [1][2][5][16]. Summary by Directory Macro Data Overview - In Q3 2025, GDP growth at constant prices was 4.8% year - on - year, lower than the previous quarter's 5.2%. In October 2025, the manufacturing PMI was 49%, down 0.8 percentage points from the previous month, while the non - manufacturing PMI was 50.1%, up 0.1 percentage points from the previous month [1]. - In September 2025, M1 and M2 growth rates were 7.2% and 8.4% year - on - year respectively, with M1 significantly higher than the previous year's - 3.3%. The CPI was - 0.3% year - on - year, and the PPI was - 2.3% year - on - year [1]. - In September 2025, exports and imports increased by 8.3% and 7.4% year - on - year respectively, showing strong foreign trade performance [1]. Commodity Investment Reference Comprehensive - In October 2025, China's official manufacturing PMI declined, while the non - manufacturing PMI entered the expansion range. In 2026, the export quota management of phosphate rock and silver will be suspended, and export license management will be implemented [2]. - The soybean meal and corn series option contracts of the Dalian Commodity Exchange will be listed for trading on February 2, 2026. The China Futures Association has issued the "Futures Market - Making Transaction Business Management Rules" [2]. - The Ministry of Finance and the State Tax Administration have issued a gold tax policy, exempting value - added tax for standard gold transactions on the Shanghai Gold Exchange and the Shanghai Futures Exchange under certain conditions [3]. Metals - London's basic metals mostly rose. Due to the tight supply of copper ore and the Fed's interest - rate cut cycle, copper prices are on an upward trend. The price of LME copper has reached a record high [5]. - In Q3 2025, the global gold demand reached 1313 tons, a 3% year - on - year increase, and the demand value soared 44% to $146 billion, both hitting single - quarter records [5]. - As of October 30, 2025, the aluminum, tin, and nickel inventories in the London Metal Exchange reached new highs, while the lead inventory reached a new low [6]. Coal, Coke, Steel, and Minerals - In the first three quarters of 2025, China's steel production and consumption continued to decline, with the decline in consumption greater than that in production. The average CSPI in the first three quarters was 93.6 points, a 9.64% year - on - year decrease [7]. - As of October 27, 2025, the coal inventory of national unified - regulated power plants was 2.2 billion tons, sufficient for over 35 days. The underground gas storage has completed the annual gas injection task [8]. Energy and Chemicals - The main contract of US crude oil rose. OPEC + members are inclined to slightly increase oil production in December. Turkey's refineries are buying more non - Russian oil [10]. - In October 2025, Russia's pipeline natural gas exports to Europe increased by 5% month - on - month, and its LNG exports in October increased by 21% [10]. Agricultural Products - In October 2025, Ukraine's grain exports decreased from 3.7 million tons in October 2024 to 2.5 million tons. The US Department of Agriculture will release multiple key agricultural reports in November [13][14]. - Poland will maintain the import ban on some Ukrainian agricultural products [14]. Financial News Compilation Open Market - On October 31, 2025, the central bank conducted 355.1 billion yuan of 7 - day reverse repurchase operations, with a net investment of 187.1 billion yuan on that day. This week, 2.068 trillion yuan of reverse repurchases will mature [15]. Important News and Information - The central bank governor proposed to optimize the basic currency issuance mechanism and the intermediate variables of monetary policy. The finance minister pointed out that during the "15th Five - Year Plan" period, special bonds and ultra - long - term special treasury bonds will be used to boost consumption and resolve local government debt [16][17]. - The National Development and Reform Commission allocated 200 billion yuan of new special bond quotas from the 500 billion yuan local government debt balance limit. The National Bureau of Statistics released the October PMI data [17]. - The CSRC and the Asset Management Association of China solicited opinions on the guidelines for the performance comparison benchmarks of public funds, aiming to standardize the performance comparison benchmarks of public funds [18]. Bond Market Summary - The sentiment in the inter - bank bond market was positive, with long - term bonds performing better. The prices of treasury bond futures rose, and the yields of secondary and perpetual bonds declined [23]. - In the exchange bond market, some bonds such as "23 Tai Cai Yuan" rose significantly, while some bonds such as "25 Gong Tou 1A" fell [24]. Foreign Exchange Market Express - The on - shore RMB against the US dollar closed at 7.1135 on October 31, 2025, down 28 basis points from the previous trading day. The US dollar index rose 0.18% [28]. Research Report Highlights - Xingzheng Fixed - Income analyzed the convertible bond holdings of fixed - income + funds in Q3 2025, indicating that the proportion of convertible bonds held by public funds continued to reach new highs, but the overall position of fixed - income + products decreased [29]. - CITIC Securities believed that the expansion of the pilot area for pension wealth management products to the whole country will promote the improvement of the multi - level pension insurance system [29]. Stock Market Important News - After the Shanghai Composite Index exceeded 4000 points, the A - share market fluctuated and adjusted last week. Institutions suggest investors start to layout low - valued sectors with expected profit recovery [33]. - As of October 31, 2025, 5446 domestic listed companies disclosed their Q3 reports, with a total operating income of 53.46 trillion yuan and a net profit of 4.7 trillion yuan, a year - on - year increase of 1.36% and 5.5% respectively [33]. - Many foreign - funded public funds have performed well this year, and fund managers are still optimistic about the allocation value of high - quality technology, manufacturing, and resource - related assets in the fourth quarter [34][35]

Group 1 - New stock subscription: Beikang Testing with subscription code 920160, issue price 6.7 CNY/share, subscription limit of 1.2744 million shares [5] - The State Council meeting on October 31 focused on deepening reforms in key areas and expanding institutional openness, aiming to enhance the openness of the commodity market [5] - The Ministry of Finance and the State Taxation Administration announced tax policies regarding gold, exempting VAT for transactions involving standard gold until the end of 2027 [5] Group 2 - The China Securities Regulatory Commission released a draft guideline for the performance comparison benchmarks of publicly offered securities investment funds, aiming to standardize the industry and enhance long-term stable returns for investors [6] - A significant breakthrough in nuclear energy was reported, with China achieving thorium-uranium fuel conversion based on molten salt reactors, marking a shift from uranium dependency [6] - As of October 31, 2025, 5,446 listed companies in China reported improved performance, with a notable emphasis on innovation and high-quality development [8] Group 3 - Anshi China has established sufficient finished and in-process inventory to meet customer demand until the end of the year and beyond, ensuring supply chain reliability [10] - Vanke A is set to receive a loan limit of up to 22 billion CNY from Shenzhen Metro Group [10] - Long-term growth in the new energy vehicle sector is highlighted, with Chang'an Automobile reporting a 36.14% year-on-year increase in sales for October 2025 [10][11]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released two important drafts aimed at enhancing the stability of public fund investment behavior, clarifying product investment styles, and improving investor experience through the establishment of performance benchmarks for publicly offered securities investment funds [2]. Group 1: Performance Benchmark Guidelines - The drafts aim to clarify the internal setting, changing, and disclosure norms of performance benchmarks, as well as to improve internal control mechanisms [2]. - The guidelines emphasize that benchmarks should reflect the product's positioning and investment style, aligning with the fund contract's investment goals and strategies [4]. - Fund managers are required to appoint experienced fund managers based on the performance benchmark, which should not be changed arbitrarily due to short-term market fluctuations or performance assessments [4]. Group 2: Strengthening Constraints on Benchmarks - Historically, there has been insufficient monitoring and control over fund managers, leading to issues such as "style drift" [7]. - The guidelines require fund managers to establish a comprehensive control mechanism covering the selection, disclosure, monitoring, and accountability of performance benchmarks [8]. - An independent department must monitor deviations from the benchmark, ensuring that fund managers are held accountable for their investment decisions [9][10]. Group 3: Constructing a Positive Interaction Ecosystem - The guidelines call for custodians, sales, and evaluation institutions to effectively supervise and utilize performance benchmarks to avoid them becoming ineffective [14]. - Custodians are tasked with responsibilities such as reviewing fund contracts and monitoring investment style stability [14]. - Fund evaluation agencies are encouraged to use performance benchmarks as a key criterion for assessing fund management [14]. Group 4: Supporting Measures for Implementation - The CSRC plans to guide industry institutions in optimizing existing products' benchmarks during a transition period to ensure market stability [17]. - A benchmark library will be established to encourage standardized selection of benchmarks that represent equity assets [17]. - The CSRC will enhance daily supervision of fund managers and related institutions to ensure compliance with the new guidelines [18].

Group 1: Public Fund Industry - The public fund industry in China, valued at over 36 trillion yuan, is undergoing significant reforms with the release of new guidelines for performance benchmarks [1] - The guidelines aim to standardize performance benchmarks and enhance investment management discipline, promoting stable investment styles and long-term returns for investors [1] Group 2: Li Auto - Li Auto announced a recall of 11,411 MEGA vehicles due to safety hazards linked to insufficient corrosion resistance in the cooling liquid, which could lead to battery thermal runaway [2] - The recall affects vehicles produced between February 18, 2024, and December 27, 2024, and is part of Li Auto's commitment to prevent future incidents [2] Group 3: Proya - Proya's Q3 2025 revenue was 1.736 billion yuan, a year-on-year decline of 11.63%, with net profit dropping 23.64% to 227 million yuan, marking the largest quarterly decline in recent years [3] - The main brand's revenue showed signs of stagnation, with a slight decrease in H1 2025, indicating challenges in maintaining growth [3] Group 4: Volkswagen - Volkswagen reported a net loss of 1.072 billion euros in Q3 2025, with a 61.5% year-on-year decline in net profit for the first three quarters [6] - Porsche's poor performance significantly impacted the group's overall results, with a 99% drop in operating profit to 40 million euros due to a shift in electric vehicle strategy [6] Group 5: ZTE Corporation - ZTE Corporation experienced an 88% drop in net profit in Q3 2025, with a revenue of 100.52 billion yuan, reflecting a 32.69% year-on-year decline in net profit [12] - The decline is attributed to reduced revenue from traditional communication services and pressure on margins in emerging computing businesses [12] Group 6: Eight Horse Tea - Eight Horse Tea's stock surged 86.7% on its debut, but the company faces challenges in a competitive market, holding only a 1.7% share in the high-end tea market [10][11] - Despite significant marketing investments totaling approximately 875 million yuan over the past three and a half years, revenue growth has been modest [11] Group 7: Xpeng Motors and WeRide - A public dispute arose between Xpeng Motors and WeRide over misleading data in Xpeng's roadshow materials, highlighting intense competition in the autonomous driving sector [7] - This incident occurred as both companies prepared for simultaneous listings, intensifying the rivalry in the market [7] Group 8: DJI - The chairman of Yingshi Innovation publicly criticized DJI for monopolistic practices, coinciding with DJI's significant market share in the panoramic camera sector [8] - DJI captured 43% of the global market share shortly after launching its first product, indicating fierce competition in the consumer electronics space [8] Group 9: Vanke - Vanke reported a net loss of 28.02 billion yuan in the first three quarters of 2025, with a revenue of 161.39 billion yuan and a low gross margin of 2.0% [9] - The losses are attributed to declining project settlement scales, low gross margins, and increased provisions for inventory depreciation [9]

Core Viewpoint - The introduction of the "Guidelines for Performance Benchmarking of Publicly Offered Securities Investment Funds" and the "Operational Details for Performance Benchmarking" by the China Securities Regulatory Commission (CSRC) aims to standardize performance benchmarks in the public fund industry, enhancing investment management discipline and promoting stable investment styles, ultimately benefiting investors with long-term returns and attracting more medium to long-term capital into the market [1]. Group 1: Benchmark Representation - The guidelines emphasize that benchmarks should accurately reflect the product's positioning and investment style, aligning with the fund contract's investment goals and strategies [2]. - Fund managers are required to appoint experienced fund managers based on the performance benchmark and cannot change the benchmark arbitrarily due to manager changes or short-term market fluctuations [2]. - The operational details further specify requirements for product design, benchmark display, and matching benchmarks with investment strategies [3]. Group 2: Investment Constraints - The guidelines mandate a comprehensive control mechanism for the selection, disclosure, monitoring, and accountability of performance benchmarks [4]. - Decision-making for benchmark selection is elevated to the company management level, holding them accountable for the benchmark's representation and objectivity [4]. - Independent departments are tasked with monitoring deviations from benchmarks and assessing potential risks [4]. Group 3: Performance Assessment - The guidelines require fund managers to establish a performance assessment system centered on fund investment returns, linking it to compensation management [5]. - Fund managers must ensure that if a fund's long-term performance significantly lags behind the benchmark, the related fund manager's compensation should decrease accordingly [5]. Group 4: Ecosystem Interaction - The guidelines call for custodians to fulfill their supervisory roles, ensuring compliance with fund contracts and monitoring investment styles [6]. - Fund managers and sales institutions are required to display both fund performance and benchmark performance to facilitate investor comparisons [6]. - Fund evaluation agencies are encouraged to use benchmarks as a key criterion for assessing fund management performance [6]. Group 5: Smooth Transition - The CSRC aims to guide industry institutions in optimizing benchmarks for existing products during the transition period to avoid market instability [9]. - A benchmark library will be established to encourage standardized selection of benchmarks that represent equity assets [9]. - The fund industry association will revise performance assessment and compensation guidelines to align fund managers' interests with those of investors [10].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released a draft guideline and operational rules for public fund performance benchmarks, aiming to standardize the management of performance benchmarks in the public fund industry and enhance investment management discipline [1][7][8]. Group 1: Regulatory Framework - The CSRC's draft guidelines and operational rules are seen as a significant step in filling regulatory gaps in public fund management, promoting the standardization of performance benchmarks [1][7]. - The guidelines emphasize the importance of aligning performance benchmarks with fund contracts and actual fund styles, ensuring market stability during the transition period for existing products [2]. Group 2: Industry Impact - The establishment of a performance benchmark element library by the fund industry association will encourage industry institutions to select appropriate benchmarks that represent equity assets [3]. - The guidelines aim to clarify investment styles and stabilize investment behaviors, addressing issues like "style drift" [6]. Group 3: Implementation Measures - The guidelines propose a comprehensive management mechanism for performance benchmarks, including selection, disclosure, monitoring, and accountability [9][10]. - Fund managers are required to establish independent departments to assess the reasonableness and potential risks of deviations from performance benchmarks [10][11]. Group 4: Performance Evaluation - The guidelines mandate that fund managers create a performance evaluation system linked to fund investment returns, ensuring that fund managers' compensation reflects long-term performance relative to benchmarks [12][14]. - Fund managers must ensure that performance benchmarks align with the asset categories, investment strategies, and market segments covered by the funds, enhancing clarity and reliability for investors [14][15].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released two important drafts aimed at enhancing the stability of public fund investment behavior, clarifying product investment styles, and improving investor experience through the establishment of performance benchmarks for publicly offered securities investment funds [2][4]. Group 1: Benchmark Representation - The performance benchmark should reflect the product's positioning and investment style, aligning with the fund contract's investment goals, scope, strategies, and restrictions [3]. - Fund managers are required to appoint fund managers with relevant investment research experience based on the performance benchmark, and once selected, the benchmark should not be changed arbitrarily [3][4]. Group 2: Strengthening Constraints on Investment - The guidelines emphasize the need for a comprehensive control mechanism covering the selection, disclosure, monitoring, and accountability of performance benchmarks [7]. - Fund managers must establish independent departments to monitor deviations from the performance benchmark and ensure compliance with legal and contractual obligations [9]. Group 3: Guiding Assessment through Benchmarks - The guidelines require fund managers to create a performance assessment system centered on fund investment returns, linking compensation to performance relative to the benchmark [10]. - Fund managers should ensure that long-term performance significantly below the benchmark results in a notable decrease in the performance compensation of relevant fund managers [10]. Group 4: Building a Positive Interactive Ecosystem - The guidelines call for custodians, sales, and evaluation institutions to fulfill their supervisory roles regarding performance benchmarks, enhancing the accountability of all market participants [11]. - Fund evaluation agencies are required to use performance benchmarks as a key criterion for assessing fund management situations, ensuring a more scientific and objective evaluation of fund performance [12]. Group 5: Supporting Work Arrangements - The CSRC will guide industry institutions in optimizing existing products' benchmarks during the transition period to ensure alignment with fund contracts and actual styles [13]. - The establishment of a benchmark library is planned to encourage standardized selection of benchmarks representing equity assets [13]. - The CSRC will enhance daily supervision of fund managers, custodians, sales institutions, and evaluation agencies regarding the selection and use of performance benchmarks [14].