Core Viewpoint - The small-cap stocks are outperforming in the current market, reflecting a "small-cap bull" trend driven by liquidity easing, policy support, and positive fundamental expectations [1][3]. Group 1: Market Performance - The CSI 2000 Index has risen over 9% this year, leading the mainstream small and mid-cap indices [1]. - The performance of small-cap stocks is significantly influenced by liquidity conditions, with small-cap stocks showing higher sensitivity to liquidity compared to large-cap stocks [3][9]. Group 2: Policy and Economic Factors - The central bank has indicated a "moderately loose" monetary policy, with expectations for further reserve requirement ratio (RRR) cuts and interest rate reductions, which benefits small-cap stocks [3][9]. - The government is increasing support for "specialized, refined, distinctive, and innovative" enterprises, particularly in sectors like AI, semiconductors, and robotics, which are well-represented in the CSI 2000 Index [5][8]. Group 3: Structural Opportunities - The ongoing state-owned enterprise (SOE) reforms and debt reduction policies are expected to enhance the potential of small-cap stocks through industry consolidation [8]. - In the early stages of economic recovery, small-cap stocks tend to exhibit faster earnings growth, benefiting from their agility in adjusting business strategies [8][9]. Group 4: Investment Trends - As of May, there is a noticeable return to small-cap growth styles, driven by continued liquidity easing and a recovery in market risk appetite [8][9]. - The CSI 2000 ETF has shown significant performance, with a net value growth rate of 24.24% since its inception, outperforming its benchmark [12].