Core Viewpoint - The article analyzes the performance of active equity funds in the A-share market during a period of volatility, highlighting the characteristics of funds that provide a stable holding experience for investors [1]. Group 1: Characteristics of Low Drawdown Funds - A small percentage (approximately 4.7%) of active equity funds have shown positive returns since March, with some funds like Huian Industry Leader A and Huian Hongyang Three-Year Holding achieving maximum drawdowns of less than 2% [2]. - The average investment concentration of these low drawdown funds is only 0.04%, significantly lower than the average of 0.11% for similar funds, indicating a diversified portfolio that mitigates individual stock volatility [2]. - The average price-to-earnings (P/E) ratio of the top holdings in these funds is around 10 times, compared to 44.23 times for similar funds, providing a strong defensive attribute during market corrections [3]. Group 2: Fund Manager Experience and Strategy - Fund managers of these low drawdown funds have an average experience of over 9 years, having navigated through two complete bear markets, which contributes to their stable investment strategies [3]. - The average turnover rate of these funds is significantly lower (92.54%) than that of similar funds (214.68%), indicating a focus on long-term investment rather than chasing short-term trends [3]. Group 3: Criteria for Selecting "Comfortable" Funds - The article outlines five key criteria for selecting funds that provide a comfortable holding experience, including maximum drawdown of less than 10% and a recovery time of less than 60 days [4]. - Only 14 funds met these stringent criteria, representing less than 0.5% of the total active equity funds established before 2021, showcasing their resilience across market cycles [4]. Group 4: Comparison with High Volatility Funds - High volatility funds, despite showing attractive long-term returns, often lead to poor holding experiences, with significant net redemptions during market downturns [5]. - In contrast, the "comfortable" funds experienced net redemptions of less than 20% during major market declines, demonstrating their ability to retain investor confidence [5]. Group 5: Example of Successful Fund - Huatai Bairui Dingli A maintained a maximum drawdown of under 5% and saw net subscriptions during market downturns, with a profitability percentage of 75.81% over five years [6]. - Conversely, another fund, CITIC Prudential Zhixing A, experienced significant redemptions and a drastic reduction in size due to poor performance during market corrections [6]. Group 6: Building a Fund Portfolio - An investment portfolio consisting of the 14 "comfortable" funds would yield a return of 29.27% with a maximum drawdown of no more than 4%, compared to a mere 2.24% return and over 40% drawdown for the broader market index [7]. - Investors are advised to set hard indicators for constructing a portfolio that emphasizes low drawdown and high recovery capability, ensuring a more stable investment experience [7]. Group 7: Strategy for Ordinary Investors - The article suggests an optimized "core-satellite" strategy, where the majority of funds are allocated to low-volatility, high-success-rate funds, while a smaller portion is invested in higher-risk, higher-reward funds [8]. - This approach balances the need for stability with the opportunity for excess returns, helping investors avoid the psychological pitfalls of high volatility [8].

Group 1 - The upcoming Spring Festival is expected to influence market sentiment, with a consensus among institutions favoring a "hold stocks during the festival" strategy, reflecting a balanced defensive approach [1][3] - Historical data indicates that the probability of the Shanghai Composite Index rising exceeds 60% in the first five trading days before the Spring Festival, increasing to 70% in the following five days [2] - The macroeconomic environment remains supportive, with stable growth policies and a generally loose liquidity situation expected to bolster market performance [2] Group 2 - The public fund market is witnessing significant activity, with 166 new funds launched in early 2023, raising a total of 154.87 billion yuan, surpassing the previous year's figures [3] - The ETF market is seeing a notable increase in investment, with a net increase of 552.48 million shares in the first seven trading days of February, indicating strong interest in index-based products [3][4] - The chemical sector, particularly petrochemicals, is attracting attention, with a net inflow of 76 million shares into the petrochemical ETF, reflecting a positive outlook for the industry [4][5] Group 3 - The technology sector, especially robotics, is identified as a key growth area, with significant capital inflows observed, indicating a recovery in investor sentiment [5][6] - The film and tourism sectors are also gaining traction, with ETFs in these areas seeing substantial growth, driven by seasonal effects and AI-related investments [6] - High-dividend strategies are becoming increasingly popular among investors, with the Free Cash Flow ETF experiencing a notable increase in shares, highlighting a preference for defensive and balanced investment approaches [6][7] Group 4 - The market is currently experiencing a rebalancing of investment styles, with a shift towards dividend-paying assets, particularly in the Hong Kong market, where certain ETFs are showing significant yield advantages [7]

Core Viewpoint - The performance of veteran fund managers has rebounded strongly, challenging the notion that they are outdated and unable to compete with younger managers who focus on high-growth sectors [2][10]. Group 1: Performance Recovery of Veteran Fund Managers - Veteran fund managers have demonstrated a strong recovery in performance, with many achieving record highs in net value in January 2026, despite previous criticisms and market challenges [3][4]. - Notable examples include Wei Dong from Guolian An Fund, whose managed fund's annualized return has returned to over 10%, and Gu Jun from Bosera Fund, who achieved a 71.3% return in the past year [3][4]. - Other veteran managers, such as Qi Fapeng and Xu Lirong, have also seen their funds reach historical net value highs, indicating a broader trend among experienced fund managers [4]. Group 2: Challenges Faced by Veteran Fund Managers - The market has seen a significant divide, with veteran managers facing pressure from new, high-performing managers who focus on high-volatility sectors, leading to doubts about the capabilities of older managers [5][6]. - Some veteran managers have struggled with large fund sizes, which can limit their ability to adapt quickly to market changes, further intensifying scrutiny on their performance [5][6]. Group 3: Trust Restoration Among Investors - As the performance of actively managed equity funds improves, investor confidence is gradually being restored, reversing previous trends of fund redemptions [8][9]. - Investors have expressed mixed feelings about their experiences, with some reporting significant losses followed by recoveries, highlighting the importance of veteran managers in navigating complex market conditions [9]. - The resurgence of veteran fund managers is seen as a critical factor in rebuilding trust within the public fund industry, as they leverage their experience to manage risks and capitalize on opportunities [8][10].

Core Viewpoint - The report from Huatai Securities indicates that the Hong Kong stock market experienced increased volatility due to global risk asset fluctuations, a pullback in the global software industry, controversies surrounding subsidies for Hong Kong tech giants, a rebound in the US dollar, and ongoing impacts from the commodity market [1] Group 1: Market Dynamics - Despite the volatility, the liquidity in the market remains relatively abundant, with significant inflows from foreign and southbound investors driving strength in traditional sectors such as agriculture, food and beverage, and transportation [1] - The upcoming peak earnings season for US tech stocks and a potential decrease in precious metal volatility are anticipated, along with several catalysts in technology and consumer sectors around the Chinese New Year [1] Group 2: Investment Strategy - The recommendation is to maintain a balanced portfolio and hold stocks through the holiday period, with a focus on sectors that have seen concentrated negative pricing, such as semiconductors, and those with improving trends in consumer goods, real estate chains, and innovative pharmaceuticals [1] - The mid-term investment strategy remains unchanged, with a suggestion to accumulate resource stocks after stabilization and to overweight insurance and local Hong Kong stocks [1]

Group 1 - The core viewpoint of the report indicates that the Hong Kong stock market experienced increased volatility due to global risk asset fluctuations, a pullback in the global software industry, and controversies surrounding subsidies for tech giants [1] - Despite the volatility, the liquidity remains relatively abundant, with significant inflows from foreign and southbound investors driving strength in traditional sectors such as agriculture, food and beverage, and transportation [1] - Looking ahead, the peak earnings season for US tech stocks is nearing its end, and a decrease in precious metal volatility is anticipated, with potential catalysts in technology and consumer sectors around the Chinese New Year [1] Group 2 - The report suggests a balanced allocation strategy, recommending holding stocks through the holiday period while focusing on semiconductor stocks, specialty consumer sectors with improving trends, real estate chains, and innovative pharmaceuticals [1] - The mid-term allocation view remains unchanged, with a recommendation to accumulate resource stocks after stabilization and to overweight insurance and local Hong Kong stocks [1]

Group 1 - A-shares have entered a phase of fluctuation and adjustment after a continuous rise at the beginning of the year, suggesting a balanced allocation across different industries to capture diverse opportunities and mitigate risks from single sectors [1] - The Invesco Great Wall Smart Mixed Fund is being launched, managed by Guo Lin, who specializes in a balanced growth investment style, focusing primarily on TMT (Technology, Media, and Telecommunications), with additional emphasis on military, pharmaceuticals, manufacturing, and new consumption sectors [1] - Guo Lin adheres to the principles of "focusing on trends, timing, and cost," seeking industries with mid-term upward trends by considering industrial policies, technological iterations, and supply-demand changes [1] Group 2 - In the current market near the 4000-point level, Guo Lin emphasizes the need for cautious stock selection due to crowded trading in popular sectors and high valuations, advising to focus on industries and companies with potential for exceeding performance expectations [2] - The Invesco Great Wall Smart Mixed Fund features a floating fee structure linked to excess returns, aligning the interests of fund managers and investors, which encourages a long-term perspective and sustainable excess returns [2] - Guo Lin remains optimistic about opportunities in technology, the internet, cyclical resource products, and manufacturing sectors "going abroad" [2]

Core Viewpoint - The A-share market has entered a phase of fluctuation and adjustment after a continuous rise at the beginning of the year, with popular sectors like commercial aerospace, gold, and silver also experiencing corrections. A balanced investment strategy across different industries is recommended to capture opportunities and mitigate risks associated with concentrated investments [1][7]. Investment Strategy - The newly issued fund, Invesco Great Wall Smart Mixed Fund (code: 026709), is managed by Guo Lin, a member of the Invesco Great Wall Technology Legion, who emphasizes a growth-oriented investment style with balanced allocations across various sectors [1][3]. - Guo Lin's investment philosophy focuses on "trends, timing, and cost," seeking to identify sub-industries with mid-term growth potential by analyzing industry policies, technological innovations, and supply-demand changes [3][9]. Portfolio Composition - In Guo Lin's managed funds, over 50% of the holdings are in growth-style stocks, primarily concentrated in TMT (Technology, Media, and Telecommunications), with additional allocations in non-ferrous metals, pharmaceuticals, military, and new consumption sectors [4][10]. - The fund has shown strong performance, with returns of 54.77% and 98.12% over the past 1 and 2 years, respectively, significantly outperforming the benchmark [10]. Market Outlook - The A-share market is currently fluctuating around the 4000-point mark, with expectations of increased trading volume and active performance in growth sectors due to a favorable liquidity environment [5][11]. - Guo Lin suggests that the first quarter is an opportune time for stock selection, as many companies will provide clearer guidance for the new year, and the market is expected to undergo differentiation after an active investment phase [12]. Fee Structure - The Invesco Great Wall Smart Mixed Fund employs a floating fee structure linked to excess returns, aligning the interests of the fund manager with those of investors and promoting a focus on sustainable long-term performance [6][12].

- The report mentions a **cycle analysis model**, which is used to track market trends and identify potential stabilization signals. The model suggests that the market may have reached a small-scale stabilization point, indicating a shift into a short-term oscillation phase with a clearer oscillation range[2][7] - A **trend model** is also referenced, which remains in a bullish zone on a larger scale. This model supports the inference that the market's short-term movements are constrained within a two-way oscillation pattern[2][7] - The **industry rotation model** is highlighted, showing dispersed signals across various sectors. It identifies opportunities in low-valuation sectors like banking, adjusted sectors like media, and sectors that have been consolidating, such as communication and growth-oriented industries. This model suggests a balanced allocation strategy for the current market environment[7] - The **four-wheel drive industry model** is presented, which provides specific signals for sector opportunities. For example, it identifies potential opportunities in sectors like photovoltaic leaders, communication, and banking, as well as trading opportunities in growth-oriented sectors and media. The model uses signal types such as "potential opportunity" and "trading opportunity" to guide sector allocation[13]

Core Conclusions - The A-share market typically exhibits balanced performance during spring rallies, with both growth and value sectors showing gains. In the latter half of bull markets, sector differentiation tends to converge, leading to a more uniform upward trend [1][2] - Recently, previously lagging sectors such as liquor and real estate have performed well, indicating a structural convergence in the market as it enters the latter half of the bull market and spring rally [1][3] - The equity market is expected to remain stable with potential for further upward movement. A balanced allocation strategy is recommended, with a focus on technology represented by AI applications, as well as traditional assets like liquor and real estate, and upstream cyclical sectors [1][3] Historical Context - Historically, during spring rallies since 2005, both growth and value styles have performed similarly, with average maximum gains of 24.0% for growth and 23.5% for value [2][14] - The current market is still within a bull market atmosphere that began in September 2024, with significant structural differentiation observed. The latter half of bull markets typically sees a more balanced performance across sectors [2][18] Market Dynamics - The recent A-share market has shown notable sector rotation, with the performance gap between styles narrowing. Since December 17, 2025, the spring rally has gradually unfolded, supported by broad-based ETFs, flexible foreign capital, and leveraged funds [1][11] - As of January 23, 2026, the industry rotation strength in the A-share market was at a historical low of 18% over the past five years, but there has been a recent uptick, suggesting that structural rotation may be beginning [12][14] Future Outlook - The current spring rally is expected to continue, with historical comparisons indicating a potential index increase of around 20%. The maximum increase of the Shanghai Composite Index since December 17, 2025, has only been 9.8%, indicating room for growth [3][30] - Continued macroeconomic policy support is anticipated to provide a fundamental basis for market growth, with a focus on stabilizing the real estate market as indicated by recent government statements [30][31] Sector Allocation - The technology sector, particularly driven by the AI wave, remains a key focus, with expectations for the rally to expand from hardware to application sectors. Recent developments in AI applications have been notable, suggesting a shift towards practical implementations [31][32] - In addition to technology, traditional value sectors such as undervalued liquor and real estate assets are also recommended for consideration in the current market environment [31][32]

Group 1 - The overall change in public fund holdings shows an increase in allocation to non-ferrous metals and communications, while reducing allocation to electronics and pharmaceuticals. The top five industries with increased holdings are non-ferrous metals (up 2.1 percentage points), communications (1.8 percentage points), non-bank financials (0.9 percentage points), chemicals (0.8 percentage points), and machinery (0.7 percentage points). The top five industries with reduced holdings are electronics (-1.6 percentage points), pharmaceuticals (-1.6 percentage points), media (-1.2 percentage points), electric new energy (-0.9 percentage points), and computers (-0.8 percentage points) [1][8][12] Group 2 - The report categorizes funds into four types: increasing, decreasing, adjusting, and extreme style. The increasing funds focus on growth style, adding positions in industrial metals, military electronics, and photovoltaic equipment, while reducing positions in batteries, digital media, and social networks. Decreasing funds are shifting from growth to value, adding positions in components, liquor, and coal mining, while reducing positions in communication equipment, semiconductors, and passenger vehicles. Adjusting funds show a balanced configuration, adding positions in semiconductors, industrial metals, and insurance, while reducing positions in consumer electronics, batteries, and state-owned banks. Extreme style funds make internal adjustments within their styles, adding communication equipment and renovation materials while reducing consumer electronics and bioproducts [7][15][16] Group 3 - The report highlights that the consensus for selling includes bioproducts, internet e-commerce, consumer electronics, social media, batteries, and digital media, while the consensus for buying includes insurance, securities, chemical products, components, photovoltaic equipment, and industrial metals [15][16][18] Group 4 - The analysis indicates that increasing funds prefer large-cap and high-valuation stocks, while decreasing and adjusting funds focus on both growth and profitability. Extreme growth funds tend to hold small-cap, high-valuation stocks with pressured profitability, while extreme value funds focus on low-valuation, large-cap stocks with low earnings growth [7][18][25]