Core Insights - The report from Western Securities indicates that the TMT (Technology, Media, and Telecommunications) fund allocation reached a historical high in Q3 2025, suggesting a need for rebalancing in industry allocation [1] Group 1: Fund Allocation Insights - The current TMT fund holdings are approximately 40%, which is considered extreme compared to historical trends where fund concentration rarely sustains above 30% [1] - The duration of the current fund concentration has reached 13 quarters, aligning with the historical average duration for such trends [1] Group 2: Recommendations - Western Securities recommends a more balanced industry allocation approach in light of the high TMT fund positions [1]

Fund Position Monitoring - The median position of ordinary equity funds is 91.98%, and for mixed equity funds, it is 91.33%, showing an increase compared to the previous quarter. The current positions are at historical percentiles of 98.41% and 100% respectively [1][6][11] - The average Hong Kong stock allocation for ordinary equity funds is 13%, and for mixed equity funds, it is 17.11%, both slightly increased from the previous quarter. The number of funds allocating to Hong Kong stocks is 241 for ordinary equity funds and 1,671 for mixed equity funds, accounting for 59.55% of the total [1][11][9] Fund Holding Concentration Monitoring - The proportion of heavy-weight stocks in equity allocation is 54.96%, up from 52.46% in the previous period, indicating a significant increase in concentration. The total number of stocks held by fund managers decreased to 2,377 from 2,507, suggesting reduced diversity in holdings [10][1][6] Sector Allocation Monitoring - The main board allocation weight is 47.54%, the ChiNext board is 19.29%, the Sci-Tech Innovation board is 13.91%, and Hong Kong stocks are 19.26%. The main board weight has decreased significantly, while the ChiNext and Sci-Tech boards have increased [21][24] - The technology sector saw a substantial increase in allocation, rising by 12.97% to a historical high of 50.51%. In contrast, the consumer and financial sectors saw significant reductions of 6.08% and 3.48%, respectively, reaching historical lows [24][27] Industry Allocation Monitoring - The top three industries by allocation weight are electronics (23.93%), electric power equipment and new energy (10.27%), and pharmaceuticals (9.81%). The industries with the most active increases in allocation are communication, computer, and electronics, with increases of 2.93%, 1.97%, and 1.85% respectively [26][27][28] Individual Stock Allocation Monitoring - The three stocks with the highest absolute market value allocation are Ningde Times (740 billion), Tencent Holdings (682 billion), and Xinyi Technology (559 billion) [31][32] Performance Fund and Billion Fund Industry Allocation Monitoring - The top three industries allocated by performance funds are electronics (41.18%), communication (38.25%), and computer (8.57%). For billion-scale funds, the top three industries are electronics (26.6%), pharmaceuticals (13.97%), and food and beverage (11.41%) [35][36]

Core Insights - Public funds have significantly increased their stock positions in the third quarter, with stock-type open-end funds showing a notable rise in average positions reaching 90.14% [1] Summary by Category Overall Fund Positioning - The average stock position of all public funds reached 83.28% by the end of the third quarter, an increase of 2.13 percentage points compared to the end of the second quarter [1] - The average position for all open-end funds was also 83.28%, reflecting the same increase of 2.13 percentage points [1] Mixed and Stock-Type Funds - The average position for mixed-type open-end funds was 82.15%, which is an increase of 1.24 percentage points from the previous quarter [1] - Stock-type open-end funds saw their average position rise by 2.26 percentage points to 90.14% [1] Concentration of Holdings - The concentration of holdings in public funds has increased, with stock-type open-end funds and mixed-type open-end funds seeing their concentration rise by 0.94 percentage points and 2.1 percentage points, respectively, reaching 56.81% and 57.72% [1]