Investment Rating - The report maintains an "Overweight" rating for the equity ETF series, focusing on the technology sector [1]. Core Insights - The market is beginning to rebound, with a continued focus on the broad technology sector. The macro timing model for October 2025 scored -1.5, indicating a high probability of slight declines in the overall A-share index. However, a strong support rebound is expected near the mid-term trend line [19][20]. - The A-share market is currently in a relatively low trading volume state, awaiting significant events such as important meetings and Sino-US negotiations before launching a more robust recovery. The technology sector is leading the market, with notable performances in overseas computing power, domestic computing power, and new energy sectors [20]. - The report suggests a balanced growth-oriented ETF allocation strategy, anticipating a market that may experience a fluctuating upward trend with ongoing structural opportunities [74][75]. Summary by Sections A-share Market Overview (2025.10.20-2025.10.24) - The top three broad indices were: ChiNext Index (up 8.05%), Sci-Tech 50 (up 7.27%), and Wind Micro Index (up 6.49%). The bottom three were: Dividend Index (up 0.71%), Shenzhen Dividend (up 0.82%), and CSI Dividend (up 1.05%) [10]. - The top three style indices were: Growth (CITIC style) (up 5.83%), Large Cap Growth (up 5.08%), and National Growth (up 4.53%). The bottom three were: Consumption (CITIC style) (up 0.61%), Large Cap Value (up 1.30%), and Stability (CITIC style) (up 1.45%) [11]. - The top three Shenwan first-level industry indices were: Communication (up 11.55%), Electronics (up 8.49%), and Electric Equipment (up 4.90%). The bottom three were: Agriculture, Forestry, Animal Husbandry, and Fishery (down 1.36%), Food and Beverage (down 0.95%), and Beauty and Personal Care (down 0.09%) [14]. A-share Market Outlook (2025.10.27-2025.10.31) - The market is expected to continue its rebound, focusing on the broad technology sector. The macro timing model indicates a potential for a fluctuating market in October [19][20]. - The report emphasizes the need for various funds to resonate for further market advances, as retail funds have shown continuous outflows despite institutional funds leading the charge [20]. Fund Allocation Recommendations - The report recommends a balanced growth-oriented ETF allocation strategy, suggesting that the market may experience a fluctuating upward trend with ongoing structural opportunities [74][75].

Core Insights - The total number of stock ETFs increased by over 3.7 billion shares, with the Hong Kong stock market ETFs being the main attraction for capital inflow [1][2] - Despite the overall market decline, specific sectors like the non-bank financial sector and innovative drug ETFs in Hong Kong saw significant capital inflows [3][4] - Broad-based ETFs experienced a net outflow of over 9.5 billion yuan, with major outflows from the SSE 50 ETF and CSI 300 ETF [5][6] Summary by Category ETF Market Performance - The total scale of stock ETFs in the market reached 4.22 trillion yuan, with an increase of 3.703 billion shares on the previous day [1] - The overall net outflow of funds from the market was 1.07 billion yuan, primarily due to significant outflows from broad-based ETFs [1][4] Capital Inflows - The non-bank financial sector attracted over 3 billion yuan in net purchases, with the Hong Kong non-bank ETF receiving 921 million yuan, leading its category [2][3] - The innovative drug sector in Hong Kong continued to attract capital, with the largest innovative drug ETF seeing a net inflow of over 1.1 billion yuan [3] Capital Outflows - Broad-based ETFs saw a net outflow of 9.539 billion yuan, with the SSE 50 ETF and CSI 300 ETF each experiencing outflows exceeding 1 billion yuan [5][6] - Other sectors such as the sci-tech chip ETF and computer ETF also faced significant outflows, each exceeding 200 million yuan [5][6] Sector Performance - The securities company index saw a net inflow of 2.034 billion yuan, with a total inflow of over 8 billion yuan in the past five days [1][3] - The solid-state battery sector showed strong performance, with the battery ETF experiencing a price increase of 2.04% and a net inflow of over 1.4 billion yuan [3] Market Outlook - Analysts from Bosera Fund and Guotai Fund expressed optimism about the equity market, citing favorable macroeconomic conditions and potential structural opportunities despite recent market adjustments [7][12]

Core Viewpoint - The stock ETF market saw an increase of over 3.7 billion shares despite a decline in the overall stock market, indicating a shift in investor interest towards ETFs, particularly in the Hong Kong market [2][4]. Market Performance - The total scale of the stock ETF market reached 4.22 trillion yuan, with a net outflow of 10.7 billion yuan overall, primarily from broad-based ETFs [4]. - The industry-themed ETFs and Hong Kong market ETFs attracted significant inflows, with net inflows of 5.445 billion yuan and 3.367 billion yuan respectively [4]. Fund Flow Analysis - The top inflow ETFs included the Hong Kong Securities ETF with a net inflow of 1.021 billion yuan and the Securities ETF with 984 million yuan [5]. - Non-bank sectors attracted over 3 billion yuan in net buying, with the Hong Kong non-bank ETF receiving 921 million yuan [5][6]. Sector Performance - The securities company index saw a net inflow of 2.034 billion yuan, with over 8 billion yuan flowing into the securities company index over the past five days [4]. - The solid-state battery sector also performed well, with the battery ETF seeing a single-day inflow of over 1.4 billion yuan [6]. Outflow Trends - Broad-based ETFs experienced a significant net outflow of 9.539 billion yuan, with the Shanghai 50 ETF and CSI 300 ETF each seeing outflows exceeding 1 billion yuan [8][9]. - Other sectors like the Sci-Tech chip ETF and computer ETF also faced substantial outflows, each exceeding 200 million yuan [8]. Investment Sentiment - Despite the market downturn, major fund companies like Bosera and Guotai Junan remain optimistic about the equity market, citing potential structural opportunities and a favorable macroeconomic environment [10][15]. - The Hong Kong market continues to show high investment activity, particularly in sectors like communication and artificial intelligence, with significant gains in related ETFs [12][11].

Group 1 - The A-share market opened lower, with the Shanghai Composite Index down 0.13% and the ChiNext Index down 0.27%, particularly affected by declines in sectors such as oil and gas extraction, brain-computer interfaces, precious metals, and liquor [1] - Huatai Securities indicates that the fundamentals still face challenges, with frequent overseas risk events, suggesting that the A-share market may remain in a volatile pattern in the short term [1] - Export growth has significantly slowed down in May compared to April, with uncertainties in Sino-U.S. trade negotiations potentially leading to a weakening of exports in the future [1] Group 2 - Industrial trends in the technology sector are supported by independent industry dynamics, showing resilience despite market adjustments, according to Industrial Securities [2] - The ongoing Israel-Palestine conflict is expected to have a limited long-term impact, providing potential opportunities for investment after short-term emotional corrections [2] - The internal factors are deemed the primary determinants of market trends, with expectations for the technology growth sector to remain a structural highlight supported by improved fundamentals [2] Group 3 - Dongfang Securities notes that despite external negative disturbances, the capital market has shown significant resilience, with policy support and improved liquidity likely to raise the market's volatility center [3] - The focus is on sectors such as pan-technology and dividend stocks, which are expected to perform well in the current market environment [3]

Core Viewpoint - The recent economic data in China exceeded expectations, leading to a collective rebound in A-shares despite external conflicts, with over 3,400 stocks rising [1][5]. Economic Data - China's industrial added value in May increased by 5.8% year-on-year, surpassing the expected 5.7% and the previous value of 6.1% [6]. - The retail sales of consumer goods in May reached 41,326 billion yuan, growing by 6.4% year-on-year, exceeding the expected 4.9% and the previous 5.1% [6]. Impact of External Conflicts - The geopolitical tensions in the Middle East have significant implications, but their actual impact on Chinese assets is limited. Short-term market fluctuations may provide investment opportunities [4][8]. - Analysts suggest that while external conflicts may trigger risk-averse sentiments globally, the fundamental factors within China will primarily dictate market trends [9]. Investment Opportunities - Goldman Sachs remains optimistic about A-shares, indicating a return of global capital to China, which could disproportionately benefit major index-weighted stocks like Tencent, Alibaba, Xiaomi, BYD, Meituan, NetEase, Midea, Heng Rui Pharmaceutical, Ctrip, and Anta [9]. - The upcoming Lujiazui Forum on June 18-19 is expected to announce significant financial policies, which could enhance domestic economic resilience [9]. Sector Performance - Recent trends show that sectors such as wind power, gaming, media, and computing have performed well, while pharmaceuticals and precious metals have seen corrections [3]. - The period from June 15 to July 15 has historically shown a high performance rate for industries with positive earnings forecasts, indicating potential investment opportunities in these sectors [10]. Market Rotation - Following the recent surge in innovative drugs and new consumption sectors, there is speculation that these themes may have reached a temporary peak. Funds are beginning to rotate towards technology sectors, including AI, media, and military technology [15][24]. - The technology sector has shown resilience during past geopolitical conflicts, suggesting it may continue to perform well despite external pressures [26].

Market Overview - The three major A-share indices opened with mixed results, with the Shanghai Composite Index up by 0.01% and the ChiNext Index down by 0.04% [1] - Sectors such as small metals, military equipment restructuring concepts, and communication services showed notable gains [1] Institutional Insights - China Galaxy predicts that the market may continue to exhibit a volatile pattern in the short term, with technology remaining the main focus for medium to long-term allocation [1] - The firm emphasizes the importance of external tariff changes and the pace of domestic policy implementation, suggesting limited adjustment space for the market [1] - Significant financial policies are expected to be announced during the Lujiazui Forum from June 18 to 19, which may support market expectations [1] - The central government's push for long-term capital inflow into the A-share market is expected to provide a more solid foundation for stable market operations [1] Investment Strategies - Three main lines of investment opportunities are identified: 1. Assets with high safety margins, particularly dividend-paying sectors that offer stable returns amid external uncertainties [2] 2. The "technology narrative" in the A-share market, with revised restructuring methods facilitating early-stage tech companies' participation in mergers and acquisitions [2] 3. The consumer sector boosted by policy support, with recent data showing the effectiveness of consumption upgrade policies [2] Market Trends - According to招商证券, the broad market index is likely to experience a volatile trend in June, with large-cap and quality indices expected to outperform [3] - The current economic fundamentals are stable, and while external changes may impact exports, domestic demand policies are still gaining momentum [3] - The firm notes a decline in corporate financing demand and a downward trend in capital expenditure, suggesting that strategies based on cash flow and return on equity (ROE) may continue to perform well [3] Sector Focus - 东方证券 indicates a shift in market focus towards the broader technology sector, suggesting that significant policy or technological catalysts could present ideal opportunities for increased allocation [4] - The recent decline in the new consumption sector in Hong Kong and the adjustment in A-share consumer stocks highlight the risks of crowded investment themes reaching their peak [4] - Strong performance in technology-related sectors such as CPO, components, AI PCs, copper cables, and drones suggests a potential market shift towards technology [4]