1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The "liquidity-driven bull" market continues, with growth stocks outperforming. In Q3, the A-share market showed a pattern of rising and then fluctuating. Looking ahead to Q4, the core support logic for the market's upward movement remains unchanged. If there are no unexpected negative factors, the market still has room to expand upwards after the phased adjustment. The two core driving forces are the continuation of the loose liquidity environment and the continuous support from the policy side [3][61]. 3. Summary by Related Catalogs Macro Economy - **CPI**: Monthly CPI was flat year-on-year, mainly dragged down by the food component, while the core CPI continued to rise year-on-year. The prices of industrial consumer goods and services were stronger than seasonal trends, driving the monthly CPI to rise month-on-month [13]. - **PPI**: Monthly PPI decreased by 3.6% year-on-year, with the decline remaining the same. The anti-involution policy has limited impact on price improvement, highlighting the need for more demand-side policy support [14]. - **Export**: Monthly exports increased by 7.2% year-on-year and decreased by 1.0% month-on-month. The "rush to export" effect was an important factor for the acceleration of exports. Exports to the EU and ASEAN provided main support [16]. - **Consumption and Real Estate**: The growth rate of social consumer goods retail sales declined, and the real estate market continued to weaken. The real estate demand still needs to be boosted, and the prices of second-hand and new houses are diverging [18]. - **Manufacturing**: The monthly manufacturing PMI rose by 3.1 percentage points to 51.5%, staying in the expansion range for two consecutive months. There was structural differentiation in sub - indicators, and the cost pressure on mid - and downstream enterprises remained [20]. - **Monetary Policy**: The subsequent monetary policy is expected to maintain a "moderately loose" tone, focusing more on the use of structural tools. There may be a small interest rate cut in Q4, and the possibility of the central bank resuming treasury bond trading operations within the year has increased [23]. Market Review - **A-share Performance**: At the beginning of the month, the A-share market had a slight correction, and the risk appetite of investors fluctuated. Since the middle of the month, the main indexes showed different trends. The market capitalization was active, and the margin trading balance reached a record high [29]. - **Industry Performance**: As of the end of the month, among the 31 Shenwan primary industries, the power equipment industry led the market with a 21.17% increase, and more than 60% of the industries recorded declines, showing obvious industry differentiation [30]. - **Market Style**: Growth-style indexes led the rise, and mid - cap stocks performed particularly well. The market showed a preference for growth sectors [32]. - **Liquidity**: During a certain period, the average daily trading volume of the A-share market increased month-on-month, and the newly established partial - stock fund shares also increased, indicating active market liquidity [38]. - **Market Sentiment**: The trading enthusiasm of the A-share market remained high, and the risk appetite gradually recovered in the middle of the month. The main funds were concentrated in high - growth sectors, and the margin trading balance continued to rise [41][42]. Private Equity Strategy - **Basis Analysis**: Monthly basis fluctuations were significant, with the first half showing convergence and the second half widening, which affected neutral strategies [47]. - **Performance of Private Equity Sub - strategies**: In a certain month, all private equity strategies achieved positive returns. Long - only strategies and arbitrage strategies ranked among the top [50]. - **Index Enhancement Strategy**: The excess returns of different index enhancement strategies showed significant differentiation. Mid - and small - cap index enhancement strategies led the way in the long term, and different strategies responded differently to market environments [53][54]. - **Market Neutral Strategy**: The environment for the neutral strategy improved in a certain month. The average return of the market neutral strategy was 0.5%, and about 83.87% of the products achieved positive returns [59]. Future Outlook The A-share market in Q3 showed a pattern of rising and then fluctuating. In Q4, if there are no unexpected negative factors, the market still has room to expand upwards, supported by the loose liquidity environment and policy support [61].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The equity market continued its structural slow - bull trend in the month, with A - share major indices hitting new highs for the year. The "dumbbell - style" asset allocation was prominent. The policy promoted supply - side reform in over - capacity industries, and the technology growth sector regained activity. The market is expected to maintain a volatile upward trend in the coming month, and investors are advised to focus on sectors with strong performance certainty and capture rotation opportunities among different sectors [3][70]. - In the operation strategy, as the market has accumulated a certain increase and entered the quarterly report period, with obvious rotation characteristics, investors can buy IM on dips and use IH for defense with an appropriate position [4]. Summary According to the Table of Contents Macro Economy - **CPI Situation**: The month's CPI remained flat at a low level, mainly dragged down by the food sub - item. The core CPI continued to rise to 0.8%. The prices of industrial consumer goods and services were stronger than seasonal, driving the CPI to rise to 0.4% month - on - month, slightly higher than the average of the past ten years. The food price decreased by 1.6% year - on - year, with the decline widening by 1.3 percentage points compared to the previous month [12]. - **PPI Situation**: The month's PPI decreased by 3.6% year - on - year, with the decline remaining the same. From the demand side, extreme weather and international environment uncertainty led to a slowdown in construction and suppressed the demand for building materials. From the supply side, hydropower replaced thermal power, causing electricity prices to fall. Although the anti - involution policy narrowed the price decline in some industries, the overall price improvement was limited, highlighting the need for more demand - side policy support [13]. - **Export Situation**: The month's export increased by 7.2% year - on - year and decreased by 1.0% month - on - month (in US dollars). The "rush - to - export" effect was an important reason for the acceleration of exports. Exports to the US continued to be under pressure, while exports to the EU, ASEAN, India, and Latin America increased [16]. - **Consumption and Real Estate**: The month's total retail sales of consumer goods increased by 3.7% year - on - year. The growth rate of commodity retail decreased, and the catering industry was still weak. The real estate demand needed to be boosted, with the prices of second - hand and new houses diverging, and the investment decline continuing to widen [21]. - **Manufacturing PMI**: The month's manufacturing PMI rose 3.1 percentage points to 51.5%, remaining in the expansion range for two consecutive months. There was structural differentiation in sub - indicators, with the new export order index still below the boom - bust line, and the cost pressure on mid - and downstream enterprises remaining [22]. - **Policy**: The central bank maintained the LPR, and the government issued special treasury bonds to support consumer goods replacement and "two - major" construction projects. The Politburo meeting continued the "seeking progress while maintaining stability" tone, emphasizing more active fiscal and moderately loose monetary policies [27]. Market Review - **A - share Performance**: In the month, the A - share market rose unilaterally. The central bank's MLF operation increased market liquidity, driving the major indices up. The technology sector led the rise, and foreign capital showed obvious signs of return. Most industries in the Shenwan primary industry rose, with communication and electronics leading [33][34]. - **Market Style**: In the month, different styles, scales, and performance segments of the A - share market showed differential rises. The growth style index led with a 15.93% increase, and large, medium, and small - cap indices all rose by more than 10%. The market risk preference increased, and the investment concept became more rational [37]. - **Liquidity**: From the specified period, the A - share market's average daily trading volume increased by 34.5% month - on - month, and the newly established equity - oriented fund shares increased by 112.5% month - on - month, indicating increased market activity and institutional capital inflows [45]. - **Market Sentiment**: The month's market trading enthusiasm was significantly high, with daily trading volume often exceeding 1 trillion yuan. The market risk preference recovered, and the turnover rate of major indices increased, especially in the science and technology innovation and ChiNext indices [48]. Private Equity Strategy - **Basis Analysis**: The month's basis showed significant volatility, with convergence in the first half and widening in the second half. This had a significant impact on neutral strategies, both increasing risks and providing potential arbitrage opportunities [54]. - **Private Equity Sub - strategy Performance**: In the month, all private equity strategies achieved positive returns. The long - only strategy and the arbitrage strategy led with single - month returns of 18.2% and 16%, respectively [57]. - **Index - Enhancement Strategy**: In the month, the excess returns of CSI 300, CSI 500, and CSI 1000 index - enhancement strategies showed significant differentiation. In the long - term, small and medium - cap index - enhancement strategies continued to lead [61]. - **Market Neutral Strategy**: The month's market neutral strategy environment improved, with an average return of 1.17% and about 83.87% of products achieving positive returns. The market's differentiated market provided more space for long - short hedging strategies [66].