1. Report Industry Investment Rating There is no information provided regarding the report's industry investment rating. 2. Core Viewpoints of the Report - In Q2 2025, the bond market environment was more favorable than in Q1. After the relaxation of funds, some bond varieties returned to a "positive carry" state, leading to an increased willingness among bond funds to add leverage, actively extend durations, and explore credit spreads, resulting in a rise in bond market congestion. The scale of money market funds reached a new high, and after the funds were relaxed, the risk of negative deviation significantly decreased. The product allocation preference shifted from fund lending to bank deposits [3][5]. - Looking ahead, due to factors such as the upcoming approval of policy - based financial instruments, continuous risk - preference disturbances, and insufficient expectations of interest rate cuts, bond market trading will enter a "hard mode". The 10 - year Treasury bond yield may rise slightly to a core fluctuation range of 1.65 - 1.75%. It is advisable to conduct bond swaps and take profits when market sentiment improves. In addition, although the market is relatively friendly in early August, there are still disturbances from factors such as expectations of broad - credit policies and risk preferences. During bond market adjustments, a fund redemption wave may be triggered, further amplifying market volatility. Institutions should maintain account liquidity and seize small - band trading opportunities [4][166]. 3. Summary by Relevant Catalogs 3.1 Bond Funds: Risk - Aversion Sentiment Drives Bond Market Recovery, Bond Fund Scale Resumes Expansion, and Performance Turns Positive 3.1.1 Asset Scale - In Q2 2025, the overall bond fund scale increased by 861.5 billion yuan. As of the end of Q2, there were 3,862 bond funds, accounting for 29.92% of all funds. The net issuance was 54 funds, and the asset net value increased to 10.93 trillion yuan. The share of bond funds mainly increased in pure - bond funds, while the share of convertible bond funds decreased slightly. Among them, passive index bond funds had the most significant scale increase, supported by the expansion of market - making credit bond ETFs [11][15][17]. 3.1.2 Subscription and Redemption - The redemption pressure on pure - bond funds in Q2 was significantly relieved compared to Q1. The net subscription ratio of short - term bond funds rebounded to 56.52%, the highest among all bond funds. The subscription sentiment of "fixed - income +" bond funds was weaker than that of pure - bond funds. The net subscription ratios of mixed first - tier and second - tier bond funds decreased, and the median net subscription - redemption rates also declined [31][35]. 3.1.3 Performance - The annualized return of bond funds in Q2 2025 increased to 4.10%. "Fixed - income +" bond funds performed better than pure - bond funds. The performance ranking was second - tier bond funds (5.21%) > first - tier bond funds (4.63%) > medium - and long - term pure - bond funds (3.82%) > passive index bond funds (3.63%) > short - term pure - bond funds (2.55%) [36]. 3.1.4 Leverage Ratio - In Q2 2025, due to the central bank's reserve requirement ratio and interest rate cuts, the funds' price center decreased, and some varieties returned to a "positive carry" state. The overall leverage ratio of bond funds increased by 1.29 percentage points to around 119.94%, and the leverage ratios of various types of bond funds also increased [43]. 3.1.5 Weighted Average Duration of Top - 5 Heavy - Position Bonds - In Q2 2025, after the rapid decline in bond market yields, institutions generally extended durations to seek returns. The weighted average duration of the top - 5 heavy - position bonds of existing bond funds increased by 0.69 years to 3.44 years. The durations of all types of funds increased [46][47]. 3.1.6 Asset Allocation - **Large - scale Asset Allocation**: In Q2 2025, bond funds mainly increased their bond holdings by 1.14 trillion yuan, with the proportion of bonds increasing to 96.51%. The proportions of stocks, bank deposits, and other assets decreased [62]. - **Bond Category Asset Allocation**: The proportion of credit bonds held by bond funds increased by 0.97 percentage points to 49.13%, while the proportion of interest - rate bonds decreased by 0.84 percentage points to 44.04% [88]. - **Rating Changes of Heavy - Position Bonds**: Overall, the bond funds' holdings of urban investment bonds and industrial bonds showed an obvious trend of concentration towards AAA - rated bonds. Pure - bond funds focused more on liquidity management, with both urban investment bonds and industrial bonds concentrating on AAA - rated bonds. "Fixed - income +" funds had more obvious credit - sinking, with an increased proportion of AA - rated and below bonds [106][107]. 3.2 Money Market Funds: "Deposit Migration" Drives Scale to a New High, and Allocation Demand Shifts to Deposits and Certificates of Deposit 3.2.1 Traditional Money Market Funds - **Asset Scale**: At the end of Q2 2025, the number of traditional money market funds remained at 364, and the scale exceeded 14 trillion yuan, an increase of 904.6 billion yuan from the previous quarter, a 6.8% increase [121]. - **Subscription and Redemption**: In Q2 2025, 52.47% of money market funds had net subscriptions. Both the retail and institutional ends had net subscriptions [127][130]. - **Performance**: The average 7 - day annualized yield of money market funds in Q2 was 1.26%, a decrease of 0.09 percentage points from Q1. The yields of Yu'E Bao and WeChat Licaitong fluctuated at a low level of 1.2 - 1.4% [136]. - **Leverage Ratio and Duration**: In Q2 2025, the average leverage ratio of money market funds increased by 1.82 percentage points to 105.78%, and the average remaining maturity increased by 7.05 days to 82.72 days [137]. - **Deviation**: In Q2 2025, the absolute - value average of money market fund deviations was basically the same as in Q1, but the number of funds with a minimum negative deviation decreased significantly [141]. - **Asset Allocation**: In terms of large - scale asset allocation, money market funds reduced fund lending and mainly increased bank deposit holdings. In terms of bond category asset allocation, they mainly increased their holdings of certificates of deposit [144][148]. 3.2.2 Floating - Net - Value Money Market Funds - In Q2 2025, the scale of floating - net - value money market funds decreased slightly. The average leverage ratio decreased to 101.54%, and the average remaining maturity decreased to 39.33 days. In terms of asset allocation, they mainly reduced bond and fund - lending holdings and increased bank deposit holdings. In terms of bond asset allocation, they mainly reduced their holdings of certificates of deposit. The yield performance was better than that of traditional money market funds [153][156]. 3.3 Main Conclusions - In Q2 2025, bond funds actively added leverage, extended durations, and explored credit varieties. Money market funds also added leverage, extended durations, and shifted their asset - allocation preferences from fund lending to bank deposits [164][165].

Group 1 - The core idea of fund asset allocation is to diversify investments across different types of funds to achieve a balanced risk-return profile [1] - Different types of funds exhibit distinct characteristics; for instance, equity funds can yield high returns in bull markets but face significant risks during downturns, while bond funds provide stability and act as a buffer during market volatility [1] - Investors must clarify their investment goals and risk tolerance, which influence asset allocation decisions, such as whether to prioritize short-term gains or long-term savings [1] Group 2 - Asset allocation is not static; it requires regular evaluation and adjustment based on changing market conditions, macroeconomic factors, and policy shifts [2] - When the proportion of a specific asset class deviates from its initial target due to market movements, adjustments should be made to restore the desired allocation [2] - Considering the correlation between funds is crucial; selecting funds with low correlation can enhance the effectiveness of asset allocation and reduce overall risk [2]

Group 1: Report Overview - The report analyzes the regular reports of active equity funds from multiple perspectives, including scale, quantity, position, concentration, industry and sector allocation, and individual stock allocation, aiming to provide an overview of fund trading behavior characteristics and asset allocation [6]. Group 2: Scale and Quantity Analysis - As of 2Q2025, there were 4,385 active equity funds in the market, an increase of 44 compared to the end of the previous quarter. The total scale of active equity funds was 3.17 trillion yuan, a decrease of 30.472 billion yuan or 0.95pct compared to the end of the previous quarter [8]. - In 2Q2025, 71 active equity funds were established in the market, with a combined issuance share of 3.6593 billion shares, a significant increase of 139.18pct compared to the end of the previous quarter [10]. - In terms of fund scale distribution, in 2Q2025, the proportion of active equity funds with a scale of less than 100 million yuan was as high as 80.55%. The proportion of large - scale funds continued to decline. The proportion of funds with a scale of less than 200 million yuan was 46.51%, a 0.12pct increase compared to the end of the previous quarter [14]. Group 3: Position Analysis - In 2Q2025, the equity positions of active equity funds increased slightly. The equity positions of common stock - type, partial - stock hybrid, and flexible - allocation funds were 90.20%, 87.50%, and 72.58% respectively, an increase of 0.86pct, 1.14pct, and 1.12pct compared to the end of the previous quarter [16]. - The Hong Kong stock positions of active equity funds increased significantly. The Hong Kong stock positions of common stock - type, partial - stock hybrid, and flexible - allocation funds were 12.85%, 17.09%, and 4.08% respectively, an increase of 0.84pct, 1.61pct, and 0.36pct compared to the end of the previous quarter [18]. Group 4: Concentration Analysis - In 2Q2025, the concentration of individual stocks and industries of active equity funds decreased slightly. The concentration of the top 3, top 5, and top 10 individual stocks was 20.92%, 31.25%, and 51.77% respectively, a decrease of 0.43pct, 0.87pct, and 1.17pct compared to the end of the previous quarter. The concentration of the first, top 3, and top 5 industries was 18.24%, 37.31%, and 46.53% respectively, a decrease of 0.33pct, 1.07pct, and 1.13pct compared to the end of the previous quarter [21]. Group 5: Heavy - Positioned Sector Analysis - In the A - share market, in 2Q2025, the top three sectors with heavy - positioned stocks of active equity funds were technology, manufacturing, and consumption, accounting for 27.89%, 23.84%, and 14.84% respectively. The sectors with increased positions were technology, financial real estate, and medicine, with an increase of 2.82pct, 1.83pct, and 0.38pct compared to the previous quarter [25]. - In the Hong Kong stock market, the top three sectors with heavy - positioned stocks of active equity funds were technology, consumption, and medicine, accounting for 46.82%, 14.40%, and 13.42% respectively. The sectors with increased positions were medicine and financial real estate, with an increase of 4.94pct and 2.39pct compared to the previous quarter [26]. Group 6: Heavy - Positioned Industry Analysis 6.1 Active Equity Funds - In A - share allocation, in 2Q2025, the top three industries with heavy - positioned stocks of active equity funds in terms of market value were electronics, medicine, and power equipment and new energy, accounting for 18.11%, 11.47%, and 8.85% respectively. The industries with the top three active increases in positions were communication, banking, and non - banking finance, with an increase of 2.51pct, 0.76pct, and 0.74pct respectively [30][32]. - In Hong Kong stock allocation, the top three industries with heavy - positioned stocks of active equity funds in terms of market value were media, electronics, and medicine, accounting for 25.69%, 13.48%, and 13.42% respectively. The industries with the top three active increases in positions were medicine, non - banking finance, and computer, with an increase of 3.88pct, 1.48pct, and 0.88pct respectively [36][37]. 6.2 Performance - Excellent and Hundred - Billion Funds - In A - share allocation, in 2Q2025, the top three industries with heavy - positioned stocks of performance - excellent funds in terms of market value were medicine, national defense and military industry, and communication, accounting for 64.66%, 9.03%, and 8.41% respectively. The top three industries with heavy - positioned stocks of hundred - billion funds were food and beverage, electronics, and medicine, accounting for 19.55%, 19.52%, and 19.35% respectively [40]. - In Hong Kong stock allocation, the top three industries with heavy - positioned stocks of performance - excellent funds in terms of market value were medicine, media, and commerce and retail, accounting for 91.45%, 2.40%, and 1.51% respectively. The top three industries with heavy - positioned stocks of hundred - billion funds were media, communication, and commerce and retail, accounting for 32.18%, 13.18%, and 12.03% respectively [41]. Group 7: Heavy - Positioned Individual Stock Analysis 7.1 Heavy - Positioned Individual Stock Market Value Analysis - In 2Q2025, the top three A - shares with the highest absolute market value of heavy - positioned stocks of active equity funds were CATL, Kweichow Moutai, and Midea Group, with market values of 46.6 billion yuan, 26.213 billion yuan, and 25.094 billion yuan respectively. The top three A - shares in terms of allocation market - value ratio were InnoCare Pharma - U, Weichai Heavy Machinery, and BeiGene - U, with the proportion of shares held in the floating shares being 31.99%, 24.84%, and 24.50% respectively [47]. - The top three Hong Kong stocks with the highest absolute market value of heavy - positioned stocks of active equity funds were Tencent Holdings, Xiaomi Group - W, and Alibaba - W, with market values of 55.608 billion yuan, 19.662 billion yuan, and 18.9 billion yuan respectively. The top three Hong Kong stocks in terms of allocation market - value ratio were 3SBio, Kelun Botai Biopharma - B, and Shanghai Fudan, with the proportion of shares held in the floating shares being 12.56%, 10.57%, and 8.95% respectively [49]. 7.2 Heavy - Positioned Individual Stock Active Position - Adjustment Analysis - In 2Q2025, the top three A - shares with the highest active increase in positions of active equity funds compared to the end of the previous quarter were Zhongji Innolight, Hudian Co., Ltd., and Sinnet Technology, with an increase of 12.953 billion yuan, 7.642 billion yuan, and 7.506 billion yuan respectively. The top three A - shares with the highest active decrease in positions were BYD, Kweichow Moutai, and Wuliangye Yibin, with a decrease of 11.04 billion yuan, 5.527 billion yuan, and 5.021 billion yuan respectively [51]. - The top three Hong Kong stocks with the highest active increase in positions of active equity funds compared to the end of the previous quarter were 3SBio, Innovent Biologics, and JD Health, with an increase of 4.919 billion yuan, 4.07 billion yuan, and 2.793 billion yuan respectively. The top three Hong Kong stocks with the highest active decrease in positions were Tencent Holdings, Alibaba - W, and SMIC, with a decrease of 10.71 billion yuan, 8.463 billion yuan, and 3.235 billion yuan respectively [53].

Core Viewpoint - The report provides an overview of the performance and strategy of the Yinhua Taili Flexible Allocation Mixed Securities Investment Fund for the second quarter of 2025, highlighting its investment objectives, strategies, and financial performance metrics [2][3][19]. Fund Overview - Fund Name: Yinhua Taili Flexible Allocation Mixed Fund - Fund Manager: Yinhua Fund Management Co., Ltd. - Fund Custodian: Industrial and Commercial Bank of China Ltd. - Total Fund Shares at Period End: 73,615,512.91 shares [2][4]. Investment Strategy - The fund employs a combination of quantitative and qualitative analysis to evaluate market trends, expected risk-return levels, and timing for asset allocation, focusing on equities, fixed income, and cash [3][19]. - The fund's investment portfolio requires that stock investments account for 0%-95% of the fund's assets, with a minimum of 5% in cash or government bonds maturing within one year [13][19]. Financial Performance - As of the end of the reporting period, the net asset value (NAV) per share for Class A was 1.6876 RMB, with a growth rate of 1.55%, while Class C had an NAV of 1.5132 RMB and a growth rate of 1.48% [20]. - The performance benchmark for the fund is the one-year RMB time deposit rate (after tax) plus 1.00% [3][20]. Market Conditions - The report notes that external risks, such as trade wars and geopolitical conflicts, have influenced global capital market volatility, but the impact has gradually weakened, leading to a recovery in global risk assets [19]. - Domestic policies aimed at addressing trade challenges and optimizing capital markets have improved market confidence and risk appetite, contributing to a rebound in the stock market [19]. Asset Allocation - The fund's asset allocation at the end of the reporting period included approximately 3.38% in equities and 15.90% in bonds [21]. - The fund's investment strategy focuses on maintaining a certain level of equity exposure while emphasizing pricing advantages and excess return capabilities in specific strategies [19][21]. Shareholder Information - The total shares for Class A increased from 16,170,269.36 to 17,604,127.46 during the reporting period, while Class C shares rose from 968,546.66 to 56,011,385.45 [22].

Core Viewpoint - Recent discussions regarding public fund assessment benchmarks leading to market adjustments are deemed inaccurate and unprofessional, with no large-scale repositioning observed in public funds [1][2] Group 1: Market Trends and Fund Performance - The "Action Plan for Promoting the High-Quality Development of Public Funds" has sparked a surge in financial stocks, particularly in the banking sector, which saw a 6.68% increase from May 7, marking a historical high [2] - The banking, non-bank financial, and electronics sectors hold the highest weights in the CSI 300 index, with respective allocations of 13.7%, 10.6%, and 10.2% [3] - Active equity funds are expected to align their performance closer to market-wide benchmarks, leading to a more balanced asset allocation in the future [1][2] Group 2: Fund Management and Strategy Adjustments - A total of 5743 funds were analyzed, with 2356 funds (over 41%) using the CSI 300 index as their performance benchmark [2] - The shift towards stricter adherence to performance benchmarks may compress excess returns for average fund managers, pushing them towards a more passive investment strategy [6] - Future performance benchmarks may be categorized into broad-based, industry-specific, and thematic categories, with most products likely to adopt broad-based benchmarks [7] Group 3: Implications for Fund Managers - Fund managers will face increased pressure to align their portfolios with performance benchmarks, which could lead to a decrease in turnover rates and a focus on maintaining high positions post-establishment [7][8] - The emphasis on performance benchmarks will significantly influence fund managers' compensation and management fee structures, making adherence to these benchmarks critical [8] - The competition among fund managers will increasingly revolve around stock selection capabilities within the framework of performance benchmarks, with a potential rise in demand for stable, actively managed equity products [8]

Core Viewpoint - The U.S. stock market has shown strong performance, with the S&P 500 achieving its longest winning streak in 20 years, driven by positive non-farm payroll data and a rebound in Chinese assets [1][3][11]. Economic Data - The U.S. added 177,000 jobs in April, significantly exceeding the expected 138,000, while the unemployment rate remained stable at 4.2%. This data is interpreted as a signal of "economic soft landing," alleviating concerns over GDP contraction [3]. Stock Market Performance - The S&P 500 rose by 1.47%, marking its ninth consecutive day of gains, while the Dow Jones and Nasdaq also recorded similar increases of 1.39% and 1.51%, respectively [3]. - The Nasdaq Golden Dragon China Index increased by 3.5%, with notable gains in Chinese stocks such as Century Internet (+13%), XPeng Motors (+5%), and Alibaba (+4%) [11]. Sector Performance - The performance of the "Big Seven" tech stocks was mixed, with Meta rising by 4.34% due to advancements in AI and recovering ad revenues, while Apple fell by 3.74% after disappointing earnings [6][8]. Trade Relations - Recent developments indicate a potential easing of trade tensions, with the Chinese Ministry of Commerce noting ongoing negotiations with the U.S. regarding tariff issues. This has positively impacted both U.S. and Chinese markets [15]. Investment Outlook - Analysts express a cautiously optimistic view on the global market, highlighting potential sector rotations and the attractiveness of Chinese assets. Goldman Sachs raised its target price for the MSCI China Index by 15%, citing unexpected government growth policies and signs of corporate profit recovery [18]. - Various institutions suggest a diversified investment approach to manage risks and capture opportunities, especially in light of anticipated market volatility in 2025 [21][22].