Investment Rating - The industry maintains a "positive" rating [2] Core Insights - In Q4 2025, the overall allocation of public funds in the chemical sector increased significantly, indicating a focus on bottom-fishing opportunities as the sector approaches a turning point [2][5] - The top ten heavy-holding stocks in the chemical sector saw a recovery in their market value share, with an emphasis on blue-chip stocks and cyclical products with price elasticity [2][10] - The total market value of the top 30 heavy-holding chemical stocks reached approximately 79.89 billion, reflecting a significant increase of about 45.23% quarter-on-quarter [21] Summary by Sections 1. Changes in Chemical Public Fund Holdings in Q4 2025 - The proportion of heavy-holding chemical stocks in public funds increased by 0.70 percentage points to 2.37%, marking a new high for 2025 [5] - Regional allocations showed increases, with East China rising by 0.63 percentage points to 2.33%, South China by 0.96 percentage points to 3.02%, and North China by 0.44 percentage points to 1.44% [5] 2. Total Market Value and Concentration of Chemical Holdings in Q4 2025 - The total market value of the top 30 heavy-holding chemical stocks increased significantly, with these stocks accounting for 84.68% of the total market value of all heavy-holding chemical stocks, up by 3.34 percentage points [21] - The top three heavy-holding stocks were Wanhua Chemical, China National Offshore Oil Corporation, and Juhua Co., with respective holdings of approximately 0.10%, 0.07%, and 0.07% [10][21]

Investment Rating - The report maintains an "Optimistic" rating for the chemical industry [2]. Core Insights - In Q4 2025, the overall allocation of public funds in the chemical sector has significantly increased, indicating a bottoming out and potential investment opportunities [2]. - The top ten chemical stocks held by public funds saw a recovery in their market value share, with a notable increase in the proportion of leading blue-chip stocks, suggesting a preference for stable investments in cyclical products with price elasticity [2][12]. - The total market value of the top 30 chemical stocks held by public funds reached approximately 79.89 billion, reflecting a significant increase of about 45.23% compared to the previous quarter [24]. Summary by Sections 1. Q4 2025 Public Fund Chemical Holdings Changes - The proportion of heavy chemical stocks in overall public fund holdings increased by 0.70 percentage points to 2.37%, marking a new high for 2025 [7]. - Regional allocations also saw increases, with East China rising by 0.63 percentage points to 2.33%, South China by 0.96 percentage points to 3.02%, and North China by 0.44 percentage points to 1.44% [7]. 2. Changes in the Number of Funds Holding Chemical Stocks - The number of funds holding chemical stocks increased significantly, driven mainly by blue-chip stocks. The top three stocks with the highest increase in the number of funds were Wanhua Chemical, China National Offshore Oil Corporation (CNOOC), and Hualu Hengsheng, with increases of 119, 85, and 75 funds respectively [15][19]. 3. Total Market Value and Concentration of Chemical Holdings - The total market value of the top 30 chemical stocks held by public funds increased significantly, with these stocks accounting for 84.68% of the total market value of all heavy chemical stocks, an increase of 3.34 percentage points [24]. - The leading stocks by market value included Wanhua Chemical at approximately 89.41 billion, CNOOC at 67.53 billion, and Juhua Co., Ltd. at 59.78 billion [24].