1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Views of the Report - In February, the main indices of the Shanghai and Shenzhen markets showed mixed performance. The CSI 500 and the Small and Medium - cap Board Index led the gains with increases of over 3%, while the STAR 50 Index had the largest decline of 1.42%. Among the 31 Shenwan primary industries, 23 industries rose, with the top 5 gainers being comprehensive, steel, building materials, environmental protection, and machinery and equipment, and the top 5 decliners being media, commercial trade, non - banking finance, banking, and pharmaceutical biology [1][14]. - In January 2026, the total number of new individual investor accounts opened in the market reached 4.9058 million, and the number of new institutional investor accounts was 10,600. Individual investor enthusiasm further increased, while institutional investor activity declined [2][21]. - In February, 28 new funds were issued with a total scale of 17.847 billion yuan. The issuance of active equity funds and passive equity funds was 3.354 billion shares and 2.928 billion shares respectively, and the issuance of active equity funds decreased significantly compared to the previous month. Overall, affected by the Spring Festival holiday, the overall issuance rhythm slowed down [3][35]. - In February, except for QDII and commodity - type funds, other types of funds rose to varying degrees. The average increase of equity - biased funds was the largest, at 1.15%. Among different - style funds, the small - cap value style had the largest increase of 4.41%, and the large - cap growth style had the smallest increase of about 0.31% [3][41]. - By calculating the average returns of equity - biased public funds of different scales last month, it can be seen that the mini - funds with a scale of 50 - 100 million yuan had the largest average increase of 1.31%, with a positive - return ratio of 64.75%. Only the super - large funds with a scale of over 10 billion yuan declined, with a decline of 0.33% and a positive - return ratio of 38.71% [3][49]. - Through the calculation of the industry positions of active equity funds, in February, the industries with the highest increase in positions were media, building materials, and comprehensive, and the industries with the highest reduction in positions were electronics, pharmaceutical biology, and non - ferrous metals. As of February 27, 2026, the overall position of active equity funds was 77.23%, an increase of 3.13 percentage points from the previous month [4][52]. - In February, the net outflow of funds from ETFs was 21.106 billion yuan. At the individual - bond level, many broad - based index ETFs showed a trend of capital outflow. Among the most actively traded targets on a daily - average basis, the Grid Equipment ETF, Machine Tool ETF, Rare Earth ETF E Fund, Shipbuilding ETF, and Oil and Gas ETF Huatai - PineBridge had the highest increases of 10.1% - 14.5%; the E Fund China Concept Internet ETF, Huatai - PineBridge Hong Kong Stock Connect Technology ETF, Puyin Game and Media ETF, Artificial Intelligence 50 ETF, and Silver Fund New Economy ETF had the highest declines of 7.3% - 14.0%. In terms of capital flow, the Hang Seng Tech ETF, Satellite ETF, Cathay Gold ETF, Grid Equipment ETF, and Securities ETF had the highest net inflows, and the Southern CSI 500 ETF, Huatai - PineBridge CSI 300 ETF, Southern CSI 1000 ETF, Non - Ferrous Metals ETF Fund, and Huaxia SSE 50 ETF had the highest net outflows [5][60]. - In February, the risk - parity model declined by 0.23%, and the risk - budget model declined by 0.48%. Since 2015, the annualized return of the risk - parity model has been 6.32% with a maximum drawdown of 1.29%, and the annualized return of the risk - budget model has been 8.08% with a maximum drawdown of 2.35%. Next month, the asset - allocation weights of the models remain unchanged [6][70]. 3. Summary According to the Directory 3.1 Domestic Market Situation - In February, the main stock indices in the Shanghai and Shenzhen markets showed mixed performance. The CSI 500 and the Small and Medium - cap Board Index led the gains with increases of over 3%, and the STAR 50 Index had the largest decline of 1.42%. Among the 31 Shenwan primary industries, 23 industries rose, with the top 5 gainers being comprehensive, steel, building materials, environmental protection, and machinery and equipment, and the top 5 decliners being media, commercial trade, non - banking finance, banking, and pharmaceutical biology [1][14]. - The ChinaBond Composite Total Return Index rose 0.01%, the ChinaBond Treasury Bond, Financial Bond, and Credit Bond Total Return Indices ranged from a decline of 0.02% to an increase of 0.14%, the CSI Convertible Bond Index rose 0.89%, and the Nanhua Commodity Index fell 1.32% [14]. - In January 2026, the total number of new individual investor accounts opened in the market reached 4.9058 million, and the number of new institutional investor accounts was 10,600. Individual investor enthusiasm further increased, while institutional investor activity declined [2][21]. - The new - filing scale of private securities investment funds in December increased month - on - month to 54.174 billion yuan, and the existing scale continued to expand, reaching 22.15 trillion yuan as of that month, remaining at a historically high level [22]. 3.2 European, American, and Asia - Pacific Market Situation In February, most of the main indices in the European, American, and Asia - Pacific markets rose. In the US stock market, the S&P 500 declined by 2.13%, the Dow Jones Industrial Average rose by 0.13%, and the Nasdaq Composite Index declined by 3.38%. In the European market, the French CAC 40 rose by 5.59%, and the German DAX rose by 3.04%. In the Asia - Pacific market, the Hang Seng Index declined by 2.76%, and the Nikkei 225 rose by 10.37% [27]. 3.3 Market Valuation Situation - In February, the valuations of the main market indices showed mixed trends. In terms of the historical percentile of price - to - earnings ratio, the CSI All - Share Index led the increase with a rise of 5.4 percentage points. In terms of the historical percentile of price - to - book ratio, the CSI 1000 Index led the increase with a rise of 5.2 percentage points [30]. - Among industries, the top five industries with the highest historical percentile of price - to - earnings ratio of the Shenwan primary index last month were real estate, electronics, building materials, comprehensive, and chemical. The price - to - earnings ratio percentile of the real estate industry was at a high level, and that of the electronics industry reached 96.9%. The bottom five industries with the lowest historical percentile of price - to - earnings ratio were non - banking finance, agriculture, forestry, animal husbandry and fishery, food and beverage, beauty care, and pharmaceutical biology, where the valuation of the non - banking finance industry was close to its historical low since 2013 [30]. 3.4 Public Fund Overall Situation 3.4.1 Fund Issuance Situation In February, 28 new funds were issued with a total scale of 17.847 billion yuan. Affected by holidays, the issuance rhythm slowed down. Among them, 10 equity funds were issued with a scale of 2.939 billion yuan, 9 hybrid funds were issued with a scale of 3.344 billion yuan, 3 bond funds were issued with a scale of 2.459 billion yuan, and 6 FOF funds were issued with a scale of 9.106 billion yuan. The issuance of active equity funds and passive equity funds was 3.354 billion shares and 2.928 billion shares respectively, and the issuance of active equity funds decreased significantly compared to the previous month [35]. 3.4.2 Fund Market Return Situation - In February, except for QDII and commodity - type funds, other types of funds rose to varying degrees. The average increase of equity - biased funds was the largest, at 1.15% [39]. - Different - style funds showed differentiated performance. The value style outperformed the growth style, and the small - and medium - cap styles outperformed the large - cap style. The small - cap value style had the largest increase of 4.41%, and the large - cap growth style had the smallest increase of about 0.31% [41]. - By calculating the average returns of equity - biased public funds of different scales last month, it can be seen that the mini - funds with a scale of 50 - 100 million yuan had the largest average increase of 1.31%, with a positive - return ratio of 64.75%. Only the super - large funds with a scale of over 10 billion yuan declined, with a decline of 0.33% and a positive - return ratio of 38.71% [49]. 3.4.3 Active Equity Fund Position Situation - In February, the industries with the highest increase in positions of active equity funds were media, building materials, and comprehensive, and the industries with the highest reduction in positions were electronics, pharmaceutical biology, and non - ferrous metals [52]. - As of February 27, 2026, the overall position of active equity funds was 77.23%, an increase of 3.13 percentage points from the previous month [54]. 3.5 ETF Fund Situation - In February, the net outflow of funds from ETFs was 21.106 billion yuan. Among them, the net outflow of equity ETFs was 90.586 billion yuan, the net inflow of cross - border ETFs was 47.433 billion yuan, and the net inflow of bond ETFs was 7.818 billion yuan. In terms of liquidity, the average daily trading volume of the overall ETF market this period reached 518.894 billion yuan, and the average daily trading volume reached 186.344 billion shares. The average daily turnover rate was 8.12%, a decrease of 1.05 percentage points from January [59]. - At the individual - bond level, many broad - based index ETFs showed a trend of capital outflow. Among the most actively traded targets on a daily - average basis, the Grid Equipment ETF, Machine Tool ETF, Rare Earth ETF E Fund, Shipbuilding ETF, and Oil and Gas ETF Huatai - PineBridge had the highest increases of 10.1% - 14.5%; the E Fund China Concept Internet ETF, Huatai - PineBridge Hong Kong Stock Connect Technology ETF, Puyin Game and Media ETF, Artificial Intelligence 50 ETF, and Silver Fund New Economy ETF had the highest declines of 7.3% - 14.0%. In terms of capital flow, the Hang Seng Tech ETF, Satellite ETF, Cathay Gold ETF, Grid Equipment ETF, and Securities ETF had the highest net inflows, and the Southern CSI 500 ETF, Huatai - PineBridge CSI 300 ETF, Southern CSI 1000 ETF, Non - Ferrous Metals ETF Fund, and Huaxia SSE 50 ETF had the highest net outflows [60]. 3.6 Model Operation Situation - Four types of large - asset allocation models were constructed using stocks, bonds, commodities, and QDII assets. Among them, the first two are fixed - ratio models, and the ratios of the latter two models are adjusted monthly based on 24 - month data [66]. - In February, the risk - parity model declined by 0.23%, and the risk - budget model declined by 0.48%. Since 2015, the annualized return of the risk - parity model has been 6.32% with a maximum drawdown of 1.29%, and the annualized return of the risk - budget model has been 8.08% with a maximum drawdown of 2.35% [6][70]. - Next month, the asset - allocation weights of the models remain unchanged. For the risk - parity model, the ratio of stocks: bonds: commodities: QDII is 7%: 69%: 11%: 13%; for the risk - budget model, the ratio is 14%: 49%: 8%: 28% [71].

Market Overview - In 2025, the A-share market exhibited a comprehensive upward trend, with major indices showing an average increase of over 10%. The growth was particularly pronounced in growth sectors, with the ChiNext Index, North Exchange 50, and Sci-Tech 50 indices each rising by over 30% [1][3]. - The structural characteristics of the market were evident, with technology and resource sectors leading the performance. The optical module (CPO) index surged by over 180%, while indices for optical chips, copper-clad laminates, optical communications, and optical circuit switches all exceeded 100% growth [1][3]. A-share Index Performance - The ChiNext Index led the gains in 2025 with a cumulative increase of 49.57%. The North Exchange 50 and Sci-Tech 50 indices followed with increases of 38.80% and 35.92%, respectively. Other indices such as the Shenzhen Component Index, Wind All A, and CSI 1000 also saw gains exceeding 20% [3]. A-share Industry Performance - Among the 35 industries classified by Wind, 31 recorded increases in 2025. The non-ferrous metals industry topped the list with a cumulative increase of 92.20%. Hardware equipment and industrial trade sectors also performed well, with increases of 62.39% and 54.65%, respectively. Conversely, the daily consumer retail sector saw a decline of 6.42% [5]. A-share Hot Concepts - The optical module (CPO) index was the strongest performer in 2025, with a cumulative increase of 181.28%. Other notable performers included optical chips (130.78%), copper-clad laminates (129.58%), optical communications (125.58%), and optical circuit switches (112.55%). The rare metals, copper industry, and rare earth indices also showed significant growth, with increases of 119.85%, 103.64%, and 98.97%, respectively [9]. A-share Market Capitalization - By the end of 2025, the total market capitalization of the A-share market reached approximately 118.91 trillion yuan, marking a 26.6% increase from the end of 2024 [15]. - The Shanghai main board had the highest number of listed companies at 1,699, accounting for 31.06% of the total. The Shenzhen main board followed with 1,490 companies (27.24%), while the ChiNext and Sci-Tech boards had 1,393 and 600 companies, representing 25.47% and 10.97%, respectively [13]. Financing and Investment Trends - As of the end of 2025, the A-share margin trading balance was reported at 25.553 billion yuan, reflecting a 5.21% increase from the third quarter and a year-on-year increase of 35.91% [22]. - The top gainers in terms of stock price included Weiwei New Materials, which saw a cumulative increase of 1,820%, followed by Tianpu Co., with a 1,645% increase. Conversely, Shijin Technology led the decline with a 51% drop [24]. IPO Activity - In 2025, the A-share market saw a total of 112 IPOs, representing a 9.8% increase year-on-year. The fourth quarter alone accounted for 36 IPOs, up 9.1% from the previous year [49]. - The total fundraising from IPOs in 2025 reached 130.83 billion yuan, a significant increase of 97.4% year-on-year, with the fourth quarter alone raising 54.86 billion yuan, up 165.0% [51].

Group 1 - Market sentiment indicators showed a slight decline, with the sentiment score at 1.75 as of October 10, down from 1.85 on September 26, indicating a bearish outlook [8][11] - The trading volume for the entire A-share market increased slightly compared to the previous week, with a peak trading volume of 26,718.18 billion RMB on October 9, indicating improved market activity [14][16] - The financing balance ratio continued to rise, reflecting an increase in market leverage sentiment and improved trading atmosphere among investors [24][26] Group 2 - The model indicates a preference for small-cap value style, with a weak signal strength due to a slight decline in the 5-day RSI relative to the 20-day RSI, suggesting further observation is needed [30][41] - The short-term trend scores for industries such as banks, steel, public utilities, and construction decoration have shown upward trends, with non-ferrous metals currently having the highest short-term score of 98.31 [30][32] - High trading congestion in sectors like non-ferrous metals and coal, alongside lower price increases in sectors like automobiles and electronics, suggests potential volatility risks and opportunities for gradual allocation in low-congestion sectors like pharmaceuticals and beauty care [37][36]

Group 1 - Market sentiment indicator decreased to 0.05 from 0.8, indicating a bearish outlook [3][9] - The price-volume consistency has declined, suggesting a lack of active capital and increased uncertainty in short-term sentiment [3][13] - Total A-share trading volume fell to 1.09 trillion RMB, the lowest of the month, with a daily trading volume of 87.774 billion shares [3][17] Group 2 - The small-cap value style is currently favored, but there are signs of a potential strengthening of large-cap style [3][30] - The electronic industry showed a significant short-term trend score increase of 25.00%, with banking, oil and petrochemicals, communication, and defense industries being the strongest in short-term trends [3][30][31] - The industry performance showed that oil and petrochemicals, banking, and non-bank financial sectors maintained strong gains, while beauty care, environmental protection, and automotive sectors faced significant declines [3][24][25]