Core Insights - The Federal Reserve's recent decision to cut interest rates by 25 basis points marks the first reduction since December 2024, impacting the A-share market which experienced a pullback after an initial rise [1][2] - The likelihood of two more rate cuts by the Federal Reserve this year has increased, diminishing the attractiveness of cash returns and potentially creating capital gain opportunities in long-term government bonds [3] Market Performance - During the week of September 15 to 21, the A-share market faced a pullback, with the Shanghai Composite Index declining by 1.30%, while the Shenzhen Component Index and the ChiNext Index saw increases of 1.14% and 2.34%, respectively [2] - Publicly offered Fund of Funds (FOF) experienced significant withdrawals, with many products seeing declines exceeding 1%. Notably, the Guotai Industry Rotation A fund dropped over 3%, and the Qianhai Kaiyuan Yuyuan fund fell by more than 2.59% [2] Fund Performance - Among the best-performing funds, the Huaxia Preferred Allocation A recorded a return of 0.18%, while the Caitong Asset Management Bo Hong Active 6-Month Holding A achieved a return of 2.25%. The best performer in the pension-targeted FOF category was the ICBC Pension 2050 Five-Year Holding A, with a weekly performance of 2.76% [2] QDII-FOF Opportunities - The QDII (Qualified Domestic Institutional Investor) funds, which invest in overseas markets, are showing strong performance, particularly in equity markets. The potential for these funds to capture investment opportunities and diversify risks is noteworthy [4] - As of mid-2025, the total number of QDII funds reached 307, with a total scale of approximately 678.27 billion RMB, marking a historical high. The growth rate compared to the end of 2024 was 11.3% [5] Investment Trends - The analysis indicates that the QDII fund structure is primarily composed of individual investors, although the proportion of institutional investors has increased to an average of 26%. This suggests a growing space for FOF funds to invest in related QDII funds, enhancing asset allocation possibilities [5]

Group 1 - The Federal Reserve lowered interest rates by 25 basis points during its September meeting, marking the first rate cut since December of the previous year, which led to a pullback in the A-share market [1][3] - The A-share market experienced a mixed performance, with the Shanghai Composite Index down by 1.30%, while the Shenzhen Component and ChiNext Index saw increases of 1.14% and 2.34%, respectively [3] - Publicly offered Fund of Funds (FOF) experienced significant withdrawals, with many products showing a weekly decline of over 1% [2][3] Group 2 - Morgan Asset Management noted that the likelihood of two more rate cuts by the Federal Reserve this year has increased, reducing the attractiveness of cash returns and potentially creating capital gain opportunities in long-term government bonds [4] - The report from Tianfeng Securities indicated that the bond market is likely to continue oscillating within a range, with ongoing market dynamics and a lack of new narratives limiting the potential for independent market movements [4] Group 3 - The QDII-FOF (Qualified Domestic Institutional Investor Fund of Funds) market is seeing structural differentiation, with strong performance in overseas equity markets, particularly in QDII funds, while commodity funds experienced slight declines due to a pullback in gold prices [7] - As of mid-2025, the total number of QDII funds reached 307, with a total scale of approximately 678.27 billion RMB, marking a historical high [7][8] - The net redemption of QDII funds in the first half of this year was -24.6 billion units, indicating some investors are taking profits from the Hong Kong stock market [8]