Group 1 - The core viewpoint indicates that the A-share market is expected to maintain a long-term positive trend despite short-term fluctuations, with institutional allocations becoming more balanced as the year-end approaches [1] - The China Galaxy Securities anticipates that the year-end market will primarily exhibit a volatile structure, preparing for next year's economic direction [1] - The A500 ETF from E Fund saw a net subscription of approximately 80 million units throughout the day, reflecting investor interest [1] Group 2 - The A500 index rose by 0.3%, the A100 index increased by 0.6%, and the A50 index went up by 0.4%, indicating a positive performance across major indices [1] - There is a clear expectation of price recovery, with a focus on sectors that are less competitive internally, as well as a validation phase for technology-driven industries and their performance [1]

Core Viewpoint - The A-share market experienced an afternoon rally, with sectors such as energy metals, optical modules, insurance, and banking leading the gains, while gas, real estate, and internet sectors faced declines. The market is expected to maintain a volatile structure as institutions prepare for next year's economic direction [1]. Group 1: Market Performance - The CSI A500 Index and the ChiNext Index both rose by 0.4% as of 14:50 [1]. - The A500 ETF by E Fund (159361) and the ChiNext ETF (159915) saw net subscriptions of 87 million and 12 million units, respectively [1]. Group 2: Institutional Insights - China Galaxy Securities indicated that as the year-end approaches, institutional allocations may become more balanced, preparing for next year's economic outlook [1]. - The expectation of a rebound in prices and the clarity of subsequent policy implementations are leading to a more defined logic for anti-involution sectors [1]. Group 3: Index Composition - The CSI A500 Index consists of 500 stocks with large market capitalization and good liquidity, focusing on industry balance and selecting leading companies, with a high proportion of emerging industries [1]. - The ChiNext Index is composed of 100 stocks from the ChiNext board with large market capitalization and good liquidity, with AI hardware and new energy sectors accounting for over 60% of its weight [1]. Group 4: Investment Options - Both the A500 ETF (159361) and the ChiNext ETF (159915) track the aforementioned indices and offer the lowest management fee rate of 0.15% per year, providing investors with diversified options for building a balanced investment portfolio [1].

Group 1 - The A-shares market experienced a decline on November 17, with the A500 ETF (512050) dropping by 0.60% and a trading volume exceeding 3.5 billion yuan, ranking first among its peers [1] - Key sectors showing strong performance included lithium mining, cross-strait integration, aquaculture, lithium extraction from salt lakes, and operating systems, with stocks like Rongbai Technology, 360, and Yahua Group hitting the daily limit [1] Group 2 - The A500 ETF (512050) saw a net inflow of over 2.8 billion yuan in the past 20 days, indicating strong investor interest in core assets [2] - Long-term funds such as public funds, insurance funds, and pension funds are increasingly entering the capital market, contributing to market stability and healthy development [2] - As of the end of Q3 this year, actively managed equity funds held a market value of 2.99 trillion yuan in A-shares, with stock positions rising to 85.62%, the highest level since 2005 [2] Group 3 - The A500 ETF (512050) offers investors a convenient way to invest in core A-share assets, benefiting from low fees (only 0.2%), good liquidity (average daily trading volume over 5 billion yuan), and a large scale (over 19 billion yuan) [3] - The ETF tracks the CSI A500 Index and employs a dual strategy of industry balanced allocation and leading stock selection, covering all 35 sub-industries and integrating value and growth attributes [3] - Compared to the CSI 300, the A500 ETF is overweight in sectors such as AI industry chain, pharmaceutical biology, and electric equipment in new energy, providing a natural "barbell" investment strategy [3]

Core Insights - The report emphasizes the superiority of the "dual low" strategy in the current market environment, particularly focusing on sectors that are expected to benefit from a "de-involution" trend [4][5][29]. Monthly Tracking of Convertible Bonds - In October, the China Convertible Bond Index slightly outperformed the China All Share Index, with a decline of 0.11% compared to a 0.15% drop in the latter. Year-to-date, the Convertible Bond Index has risen by 16.99%, while the All Share Index has increased by 23.49% [11]. - The performance of convertible bonds varied by price category, with high-priced and mid-priced convertible bond indices falling by 2.72% and 0.75%, respectively, while low-priced bonds showed resilience with a 1.44% increase [13][22]. Sector Performance - In October, the energy and financial sectors saw increases in their convertible bond indices, while the technology sector experienced a downturn, with the information technology convertible bond index declining by 0.79% [22]. - The best-performing sectors included energy, financial, and industrial, with their respective convertible bond indices rising by 3.85%, 1.35%, and 1.31% [22]. Strategy Analysis - The "dual low" strategy demonstrated defensive advantages, with the Wind Dual Low Index rising by 0.63% in October, while the high-priced low-premium index fell by 3.4% [29]. - The report highlights the increasing risk of forced redemption for low-value convertible bonds, leading to a reduction in the number of available options for investors [4][35]. Investment Recommendations - The report suggests constructing a dual low portfolio focused on sectors such as non-ferrous metals, basic chemicals, and power equipment, while avoiding high-priced technology stocks [4][32]. - For November, the recommended dual low portfolio consists of six selected convertible bonds, primarily in the power equipment sector, with an average bond price of 128 yuan and a conversion premium of 11% [36][35]. Market Outlook - The report indicates a shift in market style from high-priced sectors to low-priced sectors, particularly as the technology growth sector faces adjustment pressures. It suggests that "de-involution" sectors like photovoltaics and lithium batteries may continue to see upward momentum [37].

Market Overview - The Shanghai Composite Index closed down 36.94 points, a decline of 0.94%, at 3897.03 points; the Shenzhen Component Index fell 370.14 points, down 2.7%, at 13355.42 points; the ChiNext Index dropped 148.56 points, a decrease of 4.55%, at 3113.26 points [1] - After the holiday, risk-averse funds became active again, with trading volume returning to high levels, approximately 2.5 trillion yuan, a decrease of over 100 billion yuan compared to the previous day [1] - The market experienced a rapid rotation of hotspots, with previously underperforming anti-involution sectors showing gains, while technology growth stocks faced significant sell-offs due to concerns over high valuations [1] Sector Performance - The building materials sector performed well, with the Building Materials ETF (159745) initially rising over 3% before closing with a gain of 2.94% [8] - The release of the "Building Materials Industry Stabilization Growth Work Plan (2025-2026)" has raised expectations for enhanced anti-involution policies in the sector, leading to a more optimistic long-term sentiment [8] - Government policies promoting consumption, such as "old-for-new" initiatives, are expected to continue stimulating demand in the building materials industry, supported by real estate policy enhancements [9] Economic and Geopolitical Factors - The U.S. economy faces challenges, with concerns about "stagflation" growing, as evidenced by lower-than-expected job growth figures [13] - Geopolitical tensions, including recent military actions in the Middle East, have heightened market risk aversion, providing support for gold prices [13] - The weakening independence of the Federal Reserve due to political pressures may undermine the dollar's credit system, making gold a more attractive asset for investors [14] Investment Recommendations - During periods of market volatility, it is advised to avoid chasing highs and lows, focusing instead on sectors that have not yet realized significant gains [5] - Investors are encouraged to consider the Building Materials ETF (159745) and other related ETFs that may benefit from policy support and market adjustments [9]