1. Report Industry Investment Rating - Not provided in the given content 2. Core Views of the Report - Dun Xinyu, a fund manager at China - Europe Fund, uses fundamental quantitative methods for the "plus" part of the "fixed - income +" investment framework, with strategies such as dividend, value, quality, growth, and micro - cap, and has a macro - based asset allocation framework [6][7] - China - Europe Dingli is a medium - to - high - volatility secondary bond fund with a quantitative boom - growth strategy, showing high - return and high - risk characteristics, and investors' profit - making effect increases with the holding time [8][26] - China - Europe Enhanced Return is a low - volatility absolute - return product, emphasizing safety margins in equity assets, and also showing that investors' profit - making effect increases with the holding time [38][41] 3. Summary by Directory 3.1. China - Europe Fund Dun Xinyu: A Practitioner of Fundamental Quantitative Fixed - Income + - Dun Xinyu has rich experience in the fund industry and currently manages 8768 million yuan in assets at China - Europe Fund, covering first - tier bond funds, second - tier bond funds, and flexible allocation funds [4][5] - His investment framework for the "plus" part of "fixed - income +" uses fundamental quantitative methods, and there is also a macro - based asset allocation framework [6][7] 3.2. China - Europe Dingli: A Medium - to - High - Volatility Secondary Bond Fund with a Boom - Growth Strategy - It is positioned as a medium - to - high - volatility secondary bond fund, using a quantitative boom - growth strategy with three nested layers, aiming to earn returns from the boom [8] - The judgment of a company's boom is based on three dimensions of financial statements: financial health, profit sustainability, and growth momentum [10] - Compared with other quantitative styles, the growth style has higher volatility but also higher long - term returns, and in 2025, it has significantly outperformed other style factors [24] - In 2025, it has achieved a high return of 11.41% and an annualized volatility of 8.44%, with a superior Sharpe ratio. The profit - making effect for investors increases with the holding time [26][27] - Its stock position is 16.29% and convertible bond position is 13.14%, with an industry allocation inclined to growth sectors such as electronics, machinery, and power equipment [31] 3.3. China - Europe Enhanced Return: A Low - Volatility Absolute - Return Product - It is positioned as a low - volatility absolute - return product, aiming to create absolute returns with a 2% drawdown target [38] - It emphasizes safety margins in equity assets, using valuation as a means to measure safety margins [39] - In 2025, it has achieved a cumulative return of 3.53% with an annualized volatility of 2.26%, and multiple core indicators rank among the top in the industry [39][40] - The profit - making effect for investors also increases with the holding time [41]

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints of the Report - Deng Xinyu, a fund manager at China - Europe Fund, uses fundamental quantitative methods for the "plus" part of the "fixed - income +" investment framework, with multiple strategies such as dividend, value, quality, growth, and micro - cap strategies, and a macro - based asset allocation framework [3][9]. - China - Europe Dingli is a medium - to - high - volatility secondary bond fund with a quantitative boom - growth strategy. It emphasizes the company's financial health, profit sustainability, and growth momentum, and shows high return - risk performance and increasing investor profitability over time [12][14][32]. - China - Europe Enhanced Return is a low - volatility absolute - return product aiming for an absolute return within a 2% drawdown target. It emphasizes the safety margin of equity assets through valuation and has excellent performance in multiple core indicators [44][45][46]. 3. Summary by Relevant Catalogs 3.1. China - Europe Fund Deng Xinyu: A Practitioner of Fundamental Quantitative Fixed - Income + - Personal resume: Deng Xinyu joined China - Europe Fund in October 2023. He currently serves as a member of the fixed - income investment decision - making committee, the head of the hybrid asset group, and a fund manager. He manages multiple funds including China - Europe Dingli and China - Europe Enhanced Return [7]. - Investment framework: The "plus" part of the "fixed - income +" uses fundamental quantitative methods, with multiple strategies based on fundamental analysis and a macro - based asset allocation framework [9][11]. - Managed products: He manages products worth 8.768 billion yuan, covering first - tier and second - tier bond funds and flexible - allocation funds, achieving over 7% and 2% returns for China - Europe Dingli and China - Europe Enhanced Return respectively [8]. 3.2. China - Europe Dingli: A Medium - to - High - Volatility Secondary Bond Fund with a Boom - Growth Strategy - Product positioning: It is a medium - to - high - volatility secondary bond fund using a quantitative boom - growth strategy with three nested layers [12]. - Boom judgment: It uses financial statements to assess a company's financial health, profit sustainability, and growth momentum [14]. - Comparison with other products: It is comparable to Smart Beta products. Growth - style products have high volatility and high long - term returns, and China - Europe Dingli's equity return in 2025 has exceeded the growth index [19][30]. - Product characteristics: It has high return - risk performance, with a 2025 - to - date return of 11.41% (in the 10.16% percentile) and an annualized volatility of 8.44% (in the 8.59% percentile). Investor profitability increases with holding time [32][33]. - Portfolio: It has a stock position of 16.29% and a convertible bond position of 13.14%, with a focus on growth - oriented industries such as electronics, machinery, and power equipment [37]. 3.3. China - Europe Enhanced Return: A Low - Volatility Absolute - Return Product - Product positioning: It aims to create an absolute return within a 2% drawdown target, emphasizing the safety margin of equity assets through valuation [44][45]. - Performance: In 2025, it achieved a cumulative return of 3.53% with an annualized volatility of 2.26%, ranking in the 14.21% and 16.50% percentiles among first - tier bond funds with equity. Multiple core indicators rank high in the industry [45][46]. - Investor profitability: Investor profitability increases with holding time, with average returns of 0.49%, 1.08%, and 1.54% for 1 - month, 2 - month, and 3 - month holding periods respectively, and a 100% winning rate for 2 - and 3 - month holding periods [47].

Core Viewpoint - The essence of investment is a combination of "science" and "art," where quantitative analysis handles objective market rules, while active management addresses the qualitative aspects that cannot be quantified [2][5]. Investment Philosophy - The focus of investment should be on achieving absolute returns rather than outperforming benchmarks, emphasizing the importance of making profitable trades [2][8]. - The "three-price scoring system" (buy price, extreme bottom price, sell price) is designed to control 60%-70% of market volatility, ensuring absolute returns while managing risks [3][9]. Investment Strategy - The investment approach includes dynamic adjustments based on quarterly earnings reports, allowing for long-term holding of growth stocks and strategic buying/selling of cyclical stocks [3][11]. - The system encourages disciplined behavior among fund managers, helping to mitigate irrational actions during market fluctuations [3][17]. Quantitative and Active Management Integration - The integration of quantitative models with fundamental analysis allows for a comprehensive investment strategy that captures market trends while maintaining a focus on fundamental value [6][18]. - The collaboration between quantitative and fundamental teams results in a robust modeling process that enhances investment decision-making [11][19]. Market Outlook - The current market environment is characterized by high volatility, necessitating a focus on pricing principles to achieve absolute returns [9][23]. - The expectation is for a stabilization in the market, supported by improved fundamentals, particularly in capital expenditure and export sectors [24][23]. Team Management and Culture - The management philosophy emphasizes rule-based guidance and collaboration among team members to enhance investment outcomes [26][28]. - The focus on absolute returns in performance evaluation encourages a culture of accountability and continuous improvement within the investment team [26][30].

Group 1 - The article presents a series of quantitative research reports focused on AI and machine learning applications in investment strategies, highlighting the potential for enhanced trading and stock selection methods [2][3] - The reports cover various topics, including deep learning strategies for index futures, alpha factor mining, and risk-neutral stock selection strategies, indicating a comprehensive approach to leveraging AI in finance [2] - The basic quantitative series emphasizes long-term stock selection strategies, identifying growth companies, and financial metrics for stock selection, showcasing a multi-faceted view of investment opportunities [3] Group 2 - The research emphasizes the importance of integrating advanced technologies like neural networks and reinforcement learning in financial analysis and decision-making processes [3][6] - The reports aim to provide insights into market trends and investment strategies, potentially aiding investors in navigating complex financial landscapes [2][3] - The focus on risk monitoring systems, particularly in convertible bonds, highlights the need for robust risk management frameworks in investment practices [6]

Group 1: Fixed Income Strategies - The strategy for credit bonds and sci-tech bonds ETFs focuses on four main considerations: cash retention versus bond allocation, seeking flexibility versus static returns, duration versus credit risk for yield, and the duration structure of holdings being either barbell or bullet [4] - Historical review indicates that cash retention is typically a short-term phenomenon during periods of weak market conditions, and the likelihood of holding cash is low [4] - In the current low interest rate and low spread environment, actively seeking static returns through credit bond ETFs is not cost-effective, and these ETFs tend to extend duration to seek flexibility when interest rates stabilize or decline [4][5] Group 2: Credit Bond ETF Preferences - Given the current market environment, the preference for sci-tech bond ETFs may align with that of credit bond ETFs during correction periods, focusing on high flexibility and high ratings while favoring a barbell strategy with increased allocation to long-duration bonds [5] - The credit dimension shows that during volatile periods, credit bond ETFs have increased their allocation to high-rated bonds, and this trend is expected to continue for sci-tech bond ETFs, maintaining a dominant position in AAA-rated and above securities [5] Group 3: Selection Strategies for Sci-Tech Bonds - The selection strategy for sci-tech bonds during expansion expectations is based on the excess spread between component bonds and non-component bonds, with a narrowing spread observed as of August 29 [6] - There is an anticipated increase in demand for perpetual (non-subordinated) sci-tech bonds due to expansion expectations, with three of the first ten sci-tech bond ETFs including such bonds [6] - The issuance space for new sci-tech bonds has increased, with an average weekly issuance of 427 billion since July, indicating a growing opportunity for new issuances [6] Group 4: Market Trends in Consumer Goods - The food and beverage sector is expected to show performance advantages in growth, with a stable revenue scale and a deceleration in profit growth, particularly in the beverage and snack segments [15] - The overall performance of the food and beverage sector in Q2 2025 showed a slight increase in revenue and a decrease in net profit, with specific segments like soft drinks and snacks experiencing significant growth [16][17] - The high-end and sub-high-end liquor segments are facing pressure on demand, leading to a notable divergence in performance among brands, with top brands maintaining stability while others struggle [16]

Summary of the Conference Call on Pharmaceutical Investment Strategies Industry Overview - The pharmaceutical industry is categorized into three main segments: medical manufacturing, medical consumption, and medical technology [1][5][3]. Key Points and Arguments - **Quantitative Classification**: The classification combines subjective research and quantitative indicators (assets, expenses, personnel structure) to ensure accuracy and adaptability [1][5]. - **Selection Strategy**: Different stock selection models are constructed for each segment: - **Consumption**: Focuses on product, brand, and channel performance [1][11]. - **Manufacturing**: Emphasizes competitiveness, innovation capability, and international expansion [1][12]. - **Technology**: Concentrates on innovation output and efficiency [1][13]. - **Risk Control**: High volatility stocks are excluded to reduce the risk of sharp declines, with a focus on long-term volatility for technology stocks [1][14]. - **Margin of Safety Assessment**: Utilizes PB-ROE models for consumption and manufacturing, and PEG models for technology to eliminate overvalued stocks [1][15]. Performance Insights - **Strategy Effectiveness**: The comprehensive strategy has outperformed indices in most years, particularly in unfavorable market conditions [4][16]. - **Institutional Interest**: Stocks with lower institutional attention but solid fundamentals tend to show more stable returns and higher win rates [4][19]. - **Stock Pool Construction**: A refined stock pool of approximately 50-60 stocks is maintained, with adjustments made quarterly based on earnings reports [17][21]. Additional Considerations - **Dynamic Classification**: The classification system allows for dynamic adjustments based on changes in company attributes or business models [7]. - **Comparison with Thematic Funds**: The strategy has generally performed well against pharmaceutical thematic funds, especially in low-beta environments [18]. - **Elastic Market Strategies**: A reverse pool is created to capture high-elasticity stocks, which may not necessarily have strong fundamentals [20]. Conclusion - The pharmaceutical sector presents a robust investment opportunity through a structured quantitative approach, focusing on risk management and dynamic stock selection strategies. The emphasis on institutional interest and performance metrics provides a comprehensive framework for identifying potential investments.

Core Insights - Xu Zhongxiang is a key figure in the international quantitative investment circle, known for his contributions to the RAFI fundamental quantitative strategy and Smart Beta strategies, demonstrating a strong strategic confidence in the Chinese market [1] - The investment philosophy emphasizes a "slow money" approach, advocating for sustainable profit rather than chasing quick returns, which aligns with the long-term growth of companies [2][4] Group 1: Investment Philosophy - Xu advocates for a "slow money" investment philosophy, arguing that true growth often comes from companies that do not experience explosive growth in the short term [4] - The belief is that the pursuit of quick profits is unsustainable, and the focus should be on continuous profitability [4][5] - The investment approach is based on the understanding that high returns without risk are a myth, and investors must choose between high-risk, high-reward or low-risk, low-reward options [5] Group 2: Market Analysis - The analysis of various market data indicates that no investment strategy can consistently outperform the market, and all popular investment methods carry inherent risks [5] - Xu emphasizes the importance of understanding market dynamics and the need for a diversified investment strategy to mitigate risks [7] - The Chinese market is viewed as being in a critical development phase, with regulatory improvements and a shift towards institutionalization and professionalism [10][12] Group 3: Quantitative Investment - The core of quantitative research lies in validating patterns through vast amounts of data, which is more reliable than anecdotal success stories [8][9] - Xu's firm focuses on fundamental quantitative and low-frequency quantitative strategies, which involve long holding periods and deep engagement with companies' growth cycles [9] - The firm leverages extensive data from both domestic and international markets to adapt investment strategies to local conditions [9][11] Group 4: Regulatory Environment - The regulatory environment in China is seen as increasingly sophisticated, with a focus on protecting investors and ensuring market stability [10] - Xu argues that the perception of "weak regulation" in overseas markets is misleading, as it is built on a foundation of market maturity that China is still developing [10][12] - The evolution of the Chinese market is expected to follow a natural progression towards maturity, similar to that of established overseas markets [12]

Core Viewpoint - The new quantitative regulations have led to a significant decrease in trading volume, with a total turnover of 1.21 trillion yuan, down over 200 billion yuan, indicating a serious contraction in market activity [1] Group 1: Market Reactions - The initial impact of the new quantitative regulations has caused a short-term pain in the market, but it is expected to benefit the healthy development of the market in the long run [3] - Leading institutions are shifting towards fundamental quantitative strategies and AI stock selection models, which will favor long-term investors in the future [4] Group 2: Power Sector Insights - The power sector is experiencing a resurgence, with multiple stocks hitting the daily limit up due to high temperatures and increased electricity demand during the summer peak [5][6] - National statistics show that on July 4, the maximum national power load reached 1.465 billion kilowatts, an increase of approximately 200 million kilowatts from the end of June and nearly 150 million kilowatts year-on-year, marking a historical high [7] - Analysts suggest focusing on the power sector due to the rising electricity load and the positive performance of thermal power companies, which have seen nearly 70% of listed companies report year-on-year profit growth in Q1, largely due to falling coal prices [9] Group 3: Real Estate Sector Developments - The real estate sector has become active following a series of favorable policies released since June by the central bank and other regulatory bodies, leading to a warming market atmosphere [11] - Analysts recommend focusing on high-quality residential properties, particularly in core cities with strong land acquisition capabilities and product strength, as they are likely to benefit from the current policy environment [11]

Group 1 - The core viewpoint of the articles highlights the increasing popularity of dividend-themed funds as a key investment tool for investors amid a global preference for safe-haven assets and recent interest rate cuts by the central bank [1][2] - The central bank's recent adjustment of the Loan Prime Rate (LPR) and significant reductions in deposit rates have led to a decrease in household savings, prompting a renewed interest in dividend assets and related funds [1] - The Guangfa Stable Strategy fund, managed by Yang Dong, has achieved a return of 11.16% over the past six months, significantly outperforming the benchmark index, which only rose by 2.19% during the same period [1] Group 2 - Yang Dong is recognized for pioneering fundamental quantitative strategies in fund management, combining active stock selection with quantitative models to create a stable, outperforming equity fund [2] - The "active + quantitative" strategy involves subjective analysis for identifying trends and deep dives into individual stock fundamentals, while quantitative strategies utilize style factors to uncover patterns and enhance stock selection [2] - The team led by Yang Dong includes researchers with quantitative backgrounds, contributing to the development of specific style sub-strategies that provide flexibility in the fund's portfolio [2] Group 3 - The Guangfa Stable Strategy fund's holdings reflect a distinctive "active concentration + quantitative dispersion" approach, with a focus on a few concentrated top holdings while maintaining a diversified portfolio [3] - The fund has significantly increased its exposure to Hong Kong stocks, with a notable presence of H-shares in its top holdings, which tend to offer higher dividend yields compared to A-shares [3] - In the first quarter of 2025, the fund underwent a rebalancing, introducing six new stocks across various sectors, demonstrating its broad industry coverage and flexible adjustment capabilities [4]

Summary of Key Points from the Conference Call Industry or Company Involved - The conference call focuses on the **AI investment strategies** and **ETF market** in the context of the **capital market** as discussed by **Huatai Securities** during their **2025 Spring Strategy Meeting**. Core Points and Arguments - **AI Strategies in Investment**: AI strategies significantly enhance traditional multi-factor models by processing vast amounts of data and complex factors, particularly in volume and price data analysis, optimizing investment decisions [1][4][9]. - **Acceptance of AI in Asset Management**: The asset management industry is increasingly accepting AI strategies, particularly those based on statistical models, due to their strong performance. However, the ability of reasoning-based large language models to reach expert-level performance remains to be validated [1][13][14]. - **ETF Market Growth**: The ETF market has surpassed **3.8 trillion yuan**, with a focus on smart beta strategies to achieve stable returns through industry rotation and asset allocation models [1][22]. - **Investment Strategy Focus**: Huatai Securities emphasizes a robust return strategy, primarily focusing on bond investments, and utilizes global asset allocation models and qualitative analysis for market judgment [1][27]. - **Industry Rotation Strategy**: The industry rotation strategy combines macro, meso, and micro factors with AI identification and qualitative analysis, favoring technology, consumer, and pharmaceutical sectors while adjusting investment targets based on significant events like the Two Sessions [3][31]. - **AI's Role in Financial Engineering**: AI enhances traditional multi-factor frameworks by integrating diverse data types, leading to more precise and efficient data analysis, thus optimizing portfolio design and improving returns while reducing risks [7][18]. - **Performance of AI in Quantitative Investment**: AI strategies outperform traditional multi-factor methods by effectively aggregating information and conducting global analyses, leading to superior excess returns [9][12]. - **Future of Large Models in Finance**: Large models like DeepSeek and ChatGPT show potential in subjective analysis, suggesting a new paradigm of combining subjective and quantitative investment approaches, although their expert-level capabilities need further validation [11][15]. - **ETF Product Development**: Huatai Securities is committed to providing ETF products and solutions, focusing on smart beta strategies and offering professional services, including market reports and strategy analyses [1][23]. Other Important but Possibly Overlooked Content - **Historical Context of AI in Quantitative Investment**: The application of AI in quantitative investment began around 2003, evolving through various phases, with significant adoption starting in 2017, leading to substantial investment returns [2][13]. - **Impact of Two Sessions on Market**: The analysis of the Two Sessions' impact on the market involves reviewing historical key topics and market performance, indicating that different time periods around the event affect market dynamics [32]. - **Investment Heat and Valuation Levels**: The current investment heat in AI-related sectors is at historical highs, with significant trading activity and valuation levels, necessitating cautious investment strategies [62][64]. - **Differentiation of Index Products**: Index products vary significantly in valuation levels and stock resonance, suggesting that investors should choose based on their risk appetite and investment strategy [68][70]. - **Performance of Active Equity Fund Managers**: Different fund managers exhibit varying performance in the AI sector, categorized into stable allocation, focused sector, and flexible adjustment types, highlighting the importance of selecting managers based on their stability and risk-return profile [73][74]. This summary encapsulates the essential insights from the conference call, providing a comprehensive overview of the discussions surrounding AI investment strategies and the ETF market.