Core Viewpoint - The article discusses the rising expectations for the year-end market rally, highlighting that private equity firms are maintaining high positions despite recent market adjustments [1][4]. Group 1: Market Trends and Adjustments - Recent reports from various private equity firms indicate a continuation of strategies, with a focus on growth assets, although some structural adjustments are occurring, particularly in previously high-performing sectors like AI [2][3]. - The market has experienced a weak adjustment in November, with core indices declining and trading activity decreasing compared to the previous month. This adjustment is attributed to profit-taking, portfolio rebalancing by institutions, and a general risk-averse behavior among investors [3][4]. Group 2: Private Equity Positioning - As of November 21, 2025, the stock private equity position index reached 82.97%, marking a significant increase of 1.84% from the previous week and setting a new high for the year [4]. - The proportion of fully invested private equity firms (over 80% positions) has risen to 68.99%, while the shares of medium, low, and empty positions have decreased significantly [4]. Group 3: Future Investment Strategies - Private equity firms are optimistic about structural opportunities in the market, supported by favorable policies and liquidity conditions. They anticipate that the overall liquidity in A-shares will remain ample, with expectations of a potential interest rate cut by the Federal Reserve [4][5]. - Investment focus is shifting towards high-certainty growth sectors, particularly in the context of U.S.-China relations and global supply chain restructuring, with an emphasis on manufacturing, semiconductors, and emerging consumer trends [5][6]. - Companies are advised to pay attention to assets at the bottom of their cycles and valuations, as these may offer lower risk and potential for significant returns in the medium term [6].

Core Viewpoint - The A-share market is experiencing wide fluctuations, but certain growth sectors are performing well. Despite short-term volatility, the long-term positive trend of the A-share market remains intact, with structural opportunities brewing after the current fluctuations [1][2]. Group 1: Growth Opportunities - The company continues to favor growth assets and will explore growth potential in high-quality enterprises along several main lines: the acceleration of Chinese companies going global amid global industrial chain restructuring, particularly in manufacturing, which is seizing new opportunities from re-industrialization in Europe and the U.S. and industrialization in emerging markets [1]. - In the semiconductor and other technology sectors, Chinese companies are expected to achieve technological catch-up and industrial upgrades in certain key areas [1]. Group 2: Consumer Trends and Market Dynamics - The rise of a new generation of consumers is reshaping consumption perceptions and behaviors, leading to the continuous emergence of new brands, product categories, and experiences [2]. - The company will focus on dimensions such as visibility of performance realization, sustainability of growth logic, and certainty of marginal catalytic factors in its investment choices [2]. Group 3: Strategic Adjustments and Market Monitoring - As the attractiveness of growth assets increases, the company has intensified its layout in high-certainty growth sectors, adjusting positions in the electronics sector and optimizing the internal structure of power equipment while reducing holdings in the pharmaceutical sector [2]. - The company is closely monitoring changes in corporate fundamentals and dynamically assessing opportunity potential to prepare for potential cross-year and spring market trends [2].

Group 1 - The core investment strategy focuses on industries with upward trends, aiming to identify 3 to 5 main directions annually that have strong fundamentals and significant growth potential [2][3] - The investment approach includes selecting leading companies within chosen industries, emphasizing sectors such as technology, new energy, consumption, and pharmaceuticals [3][4] Group 2 - The portfolio management strategy involves adjusting the weight of value and growth assets based on market conditions and industry trends, while maintaining a balanced risk profile [4] - The current A-share market is viewed as undervalued, with growth assets expected to perform well due to supportive policies, ample liquidity, and steady economic recovery [5] - In the technology sector, there is a strong demand for optical modules and PCBs, with leading companies showing low valuations and high growth rates [5] - The new consumption sector is considered an important investment direction, particularly in areas with strong emotional attributes and significant overseas potential [5][6]

Core Viewpoint - The article discusses the performance of dividend assets compared to growth assets in different market phases, highlighting the potential risks of dividend assets under certain market conditions, particularly during bull markets [4][26]. Market Phases Analysis - From 2014 to present, dividend assets have shown low volatility and steady growth, while growth assets like the ChiNext have experienced more dramatic fluctuations [6]. - In the early bull market phase (2014-2015), the dividend index rose by 177%, but growth stocks outperformed with a 194% increase in the ChiNext index [8]. - During the 2015 stock market crash, the dividend index fell by 44%, similar to the declines in the CSI 300 and ChiNext indices [11]. - In the structural bull market phase (2016-2017), the dividend index increased by 44%, matching the CSI 300, while the ChiNext index only rose by 6% [14]. - In the bear market of 2018, the dividend index decreased by 25%, but it had the smallest decline compared to other indices [17]. - From 2019 to 2021, the dividend index only increased by 24%, significantly lagging behind the ChiNext's 170% rise [19]. - During the adjustment period (2021-2022), the dividend index fell by 4%, outperforming the CSI 300 and ChiNext indices [21]. - In the current oscillation phase (2022-2024), the dividend index has risen by 4%, while other indices have declined [23]. - Looking ahead to the potential explosive phase starting in Q4 2024, the dividend index is expected to lag behind growth styles due to a lack of valuation elasticity [25]. Investment Strategy Insights - The article concludes that while dividend assets may underperform in bull markets driven by risk appetite, they can perform well in structural bull markets where both valuation and earnings recover [26]. - Historical market trends indicate that a balanced asset allocation is essential for navigating different market environments and achieving sustainable returns [27].

Group 1 - Public funds are preparing for the second half of the year, with a significant increase in attention towards dividend assets, which are viewed as stable components in investment portfolios [1][2] - The average returns of active equity funds have shown recovery, with ordinary stock funds and mixed equity funds returning 2.13% and 2.28% respectively year-to-date as of April 30, and a one-year return of 6.95% [1] - The price-performance ratio of dividend assets, such as the CSI Dividend Index, is at the 99th percentile of the past decade, indicating that these assets are currently among the most cost-effective options [2] Group 2 - Certain low-volatility sectors with high dividend yields, such as banking, ports, hydropower, and logistics, are expected to perform steadily due to stable earnings and favorable dividend sustainability [3] - The Hong Kong stock market shows a valuation advantage for high-dividend stocks, supported by a conducive market environment for their performance [3] - Regulatory policies enhancing dividend oversight, combined with a low-interest-rate environment, are likely to accelerate the entry of long-term capital into the market, maintaining the investment value of Hong Kong dividend stocks [3]