Core Insights - The number and proportion of passive index funds being launched by fund companies are significantly higher than other types of funds as the year-end approaches, indicating a strategic shift in the market [1][2] - Despite strong performance, the share of actively managed equity funds is decreasing, leading to increased net redemption pressure on existing funds [1][2] Group 1: Fund Issuance Trends - As of November 5, 2023, a total of 1,333 new funds have been launched this year, surpassing previous years and nearing the 2022 total of 1,546 [2] - Equity and mixed funds account for over 50% of the new fund issuance, with equity funds making up 37.69%, the highest since 2020 [2] - The proportion of bond funds has sharply decreased from over 65% in the past three years to 41.13%, highlighting a "strong equity, weak bond" trend [2] Group 2: Performance of Passive Index Funds - In Q3, 361 new equity funds were established, with a total scale of 203.608 billion yuan, of which 258 were index equity funds, accounting for over 70% of the total issuance [2] - The total share of actively managed equity and mixed funds decreased by 230.961 billion yuan in Q3, indicating a shift in investor preference towards passive products [2] Group 3: Strategic Focus of Fund Companies - Fund companies are increasingly focusing on passive index products, with 44 new products awaiting issuance, half of which are passive index funds [3] - These new products include enhanced versions of major indices and thematic funds in popular sectors such as technology and renewable energy [3] - Market analysts suggest that while there may be profit-taking at year-end, the dividend strategy could benefit from lower competition and better valuation compared to the technology sector [3]

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - In 2025Q3, the performance of major asset classes showed a "strong stocks, weak bonds" characteristic. Equity and convertible bond funds led the market, while pure bond funds and first - and second - tier bond funds underperformed. The scale of "fixed income +" funds rebounded, and the convertible bond strategy was advantageous. Convertible bond - enhanced funds performed brightly, but with relatively high volatility [11][23][42]. 3. Summary According to the Table of Contents 3.1 2025Q3, How Did "Fixed Income +" Funds Perform? 3.1.1 Stock - Strong, Bond - Weak, Equity Funds Led the Market - In 2025Q3, major asset classes showed a "strong stocks, weak bonds" characteristic. The equity market rose from July to August and entered a shock - adjustment period in September, while the bond market oscillated and corrected. The Wande All A, ChiNext Index, and Science and Technology Composite Index rose by 19.46%, 50.40%, and 39.61% respectively. The CSI Convertible Bond Index rose by about 9.43%. Equity and convertible bond funds led the market, with median returns of stock - type and partial - stock hybrid funds generally over 20% and that of convertible bond funds reaching 13%. Pure bond funds and first - and second - tier bond funds underperformed. Passive index - type stock funds and second - tier bond funds saw an increase in net asset value and shares, while pure bond funds were redeemed [11]. 3.1.2 "Fixed Income +" Scale Rebounded, Convertible Bond Strategy was Advantageous - After re - defining "fixed income +" funds based on post - event asset allocation, 1424 funds were selected for analysis. As of 2025Q3, the total share of these funds was 151.5461 billion, a 32.22% increase from the end of Q2, and the total net asset value was 2.0363 trillion yuan, a 36.5% increase. The convertible bond positions of "fixed income +" funds generally decreased at the end of Q3. Over 93% of "fixed income +" funds had positive returns in 2025Q3, and convertible bond - enhanced funds performed brightly but with relatively high volatility [23][24][31]. 3.2 Which High - Performing "Fixed Income +" Funds Led the Market? 3.2.1 Performance Review of Existing "Fixed Income +" Funds - Among the top 30 "fixed income +" funds with the highest returns in 2025Q3, convertible bond - enhanced funds dominated. Southern Changyuan Convertible Bond, Huashang Shuangyi, etc. had nearly 29% positive returns, and Huashang Shuangyi had a maximum drawdown within 4%. In the top 30 stock - enhanced funds, Huaxia Fund had multiple products on the list. The top 30 ordinary "fixed income +" funds were more scattered [47][52]. 3.2.2 Performance Review of Newly - Issued "Fixed Income +" Funds - Among the potential "fixed income +" funds newly established since 2024, Shangzheng Zhengtai Balanced Allocation and Quanguo Research Selection had over 11% positive returns in 2025Q3 and a maximum drawdown of about 2%. The remaining top 30 were mostly second - tier bond funds, with over 80% bond positions and about 10% equity positions, and their Q2 returns were mostly within 5% and the maximum drawdowns were mostly within 2% [56]. 3.3 What Were the Characteristics of the Holdings of High - Performing "Fixed Income +" Funds? 3.3.1 History: Which Directions Did High - Performing Funds Invest in? - At the end of 2025Q2, top "fixed income +" funds and convertible bond - enhanced funds significantly over - allocated manufacturing - chain convertible bonds and under - allocated financial convertible bonds. They also over - allocated partial - stock and high - price convertible bonds and under - allocated high - rated convertible bonds. In terms of stock industry allocation, they over - allocated metals, steel, power equipment, electronics, and computers [4]. 3.3.2 Present: Which Directions Are High - Performing Funds Investing in? - High - performing "fixed income +" funds continued to significantly over - allocate convertible bonds in metals, mid - stream manufacturing, and TMT sectors and under - allocate bank convertible bonds. They over - allocated high - price convertible bonds above 130 yuan and partial - stock convertible bonds and under - allocated medium - price convertible bonds between 110 - 130 yuan. They also over - allocated stocks in metals and electronics and under - allocated cyclical and financial stocks. Seventeen convertible bonds such as Haoyuan Convertible Bond were held by over 15 top "fixed income +" funds, and 17 convertible bonds such as Yunji Convertible Bond and Daotong Convertible Bond were held by over 20% of top "fixed income +" funds [4].

Group 1: Macro Economic Overview - The report indicates that the 30-year government bonds are expected to stabilize and rebound within one quarter, but will continue to decline in the long term, targeting the low point from September 30, 2024 [3][17]. - The A-share market has seen the Shanghai Composite Index reach 4000 points for the first time in ten years, providing a solid foundation for future highs, with any pullback seen as a buying opportunity [4][19]. - The technology sector has shown significant gains, with many leading tech stocks reaching new highs, while sectors like coal, banking, and military remain undervalued, suggesting a strategy of buying in less popular areas [4][19]. Group 2: Stock Market Insights - The report highlights that the military equipment sector has led the market with gains exceeding 2%, while precious metals have underperformed [4][19]. - The technology sector's absorption rate remains high, above 35%, indicating limited room for a pullback, and suggests that lower volatility sectors may yield better returns in the fourth quarter [4][19]. - The report advises against chasing high-volatility tech stocks at elevated levels and recommends focusing on traditional sectors for potential excess returns [4][19]. Group 3: Foreign Market Analysis - The U.S. stock market is expected to perform strongly due to anticipated agreements on trade at the APEC meeting and positive earnings reports, although it may experience low volatility leading up to key meetings [5][24]. - The report notes that the U.S. dollar is likely to maintain its strength, with the euro expected to weaken against the dollar, while the Chinese yuan is projected to remain stable against the dollar [6][28]. - The report emphasizes that the market's perception of the U.S. economy may shift positively in the fourth quarter, correcting overly pessimistic expectations [7][28]. Group 4: Commodity Market Trends - The report indicates a slight decline in the Wenhua Commodity Index, with steel and construction materials leading gains, while precious metals are advised to be approached with caution due to recent volatility [8][32]. - Oil prices have surged due to sanctions on Russian oil, although the overall trend remains weak, suggesting a potential for stabilization in the short term [8][32]. - The report highlights that various commodities, including copper, aluminum, and lithium carbonate, are showing strength, with several domestic products indicating signs of recovery [8][32]. Group 5: Policy and Regulatory Developments - The report outlines key domestic policies, including the release of the 15th Five-Year Plan, which aims to improve income distribution and increase the proportion of labor income in national income [9][35]. - The report also mentions the 11th batch of national drug procurement, which includes 55 commonly used drugs, aiming to stabilize clinical needs and ensure quality [9][35]. - The 28th China-ASEAN Leaders' Meeting is noted, emphasizing cooperation and unity as essential for mutual benefits [9][36].

Core Viewpoint - The "fixed income +" products have shown diverse net value curves in the context of a strong stock market and weak bond market, with some products achieving outstanding performance through high elasticity allocations in stocks and convertible bonds, while others focusing on long-duration bonds performed relatively poorly [1][2]. Group 1: Performance of "Fixed Income +" Products - The average increase of "fixed income +" products this year is approximately 4.8%, with top performers like Huazhong Zhili rising by 47.77% and Huashang Shuangyi by 44.4% [4]. - The leading products have significant allocations in equity assets, with over 40% of assets in stocks for top performers, benefiting from high-elasticity technology stocks [4]. - The performance of other high-ranking products, such as Fuguo Jiuli and Minsheng Jiayin, also shows a strong focus on convertible bonds, with allocations exceeding 70% [4]. Group 2: Risk Level Adjustments - Several public funds and distribution channels have raised the risk levels of their "fixed income +" products, with many being upgraded from R2 (medium-low risk) to R3 (medium risk) [8]. - The adjustments in risk levels are influenced by regulatory requirements, market conditions, and changes in target customer profiles [8][9]. Group 3: Market Outlook - The bond market is expected to maintain a stable operation, while the equity market is anticipated to continue with structural trends, leading to a consensus on seeking higher risk-return ratios through "fixed income +" products [2][12]. - The overall scale of "fixed income +" funds reached 1.48 trillion yuan by the end of the second quarter, with a significant increase of over 100 billion yuan in a single quarter [11]. - The current economic indicators suggest a weak recovery, providing a stable foundation for the bond market, while also presenting new challenges [12].

Core Insights - The bond fund products are experiencing significant redemptions, with at least 81 bond products facing large redemptions since the second half of 2025, particularly in October [1][2] - The shift in market preference has led to a decline in bond fund performance, while "fixed income+" and mixed products are gaining popularity [2][7] - The overall bond market is under pressure due to increased risk appetite for equities, resulting in a "strong stock, weak bond" market dynamic [1][3] Bond Market Performance - As of October 27, 2025, the average total return for short-term pure bond funds was only 0.03% for the past week and 0.20% for the past month, indicating poor performance [6] - The issuance of bond funds has significantly decreased, with only 19.52 billion units issued in October compared to 599.54 billion units in September [6][7] - The 10-year government bond yield fluctuated, with a recent drop to 1.8%, reflecting a volatile market environment [3][6] Market Dynamics - The bond market is facing a lack of clear direction, with trading logic rapidly changing and overall profitability weaker than in the equity market [2][3] - The new public fund fee regulations are impacting the market, leading to increased competition among fund managers, particularly affecting smaller public funds [2][8] - The anticipated changes in redemption rules and performance benchmarks are expected to reshape the investment landscape for bond funds [9]

Core Viewpoint - The financial market experienced a balanced and slightly loose liquidity environment, with the stock market continuing to strengthen, as the Shanghai Composite Index reached a new high in over ten years. The bond market saw an overall pullback, with the 10-year government bond yield rising by 2.4 basis points to 1.85% [1] Market Overview - The bond market saw fluctuations in yields across various maturities, with the 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, 30-year, and 50-year government bond yields changing by 2.82 BP, -0.17 BP, 1.54 BP, 2.75 BP, 3.72 BP, 2.4 BP, 1.24 BP, and 3.5 BP respectively from October 17 to October 24, 2025 [2] - The 10-year government bond yield experienced a notable increase, particularly on October 20, where it rose by 2.05 BP to 1.768% due to poor auction results [2][3] Monetary Policy - The central bank announced that it would continue to inject liquidity into the market, maintaining a supportive monetary policy stance, with the MLF (Medium-term Lending Facility) being increased for the eighth consecutive month [1][11] - The central bank's operations included a total of 867.2 billion yuan in 7-day reverse repos, indicating ongoing efforts to manage liquidity [11] Economic Indicators - The third quarter GDP growth was reported at 5.2%, with the primary, secondary, and tertiary industries showing growth rates of 3.8%, 4.9%, and 5.4% respectively [13] - The total balance of RMB loans by financial institutions reached 270.39 trillion yuan, reflecting a year-on-year growth of 6.6% [14] International Market - The U.S. Treasury yields exhibited a V-shaped trend, with the 10-year yield stabilizing at 4.01% after a decline earlier in the week [8] - The U.S. federal government debt surpassed 38 trillion dollars, highlighting ongoing fiscal challenges [10] Institutional Insights - Analysts suggest that the bond market may continue to experience a range-bound trading pattern due to uncertainties surrounding U.S.-China trade negotiations and monetary policy adjustments [15][16] - There is a growing interest in credit bonds, which are perceived to offer some protection against interest rate fluctuations, although institutional investors remain cautious due to market conditions [17]

Report Summary 1. Report Industry Investment Rating The document does not provide the industry investment rating. 2. Core Viewpoints - Short - term equity markets are expected to adjust due to Sino - US relations, but the long - term trend of stronger stocks and weaker bonds may not reverse. The adjustment of the equity market will determine the subsequent trend of convertible bonds, which are likely to show resilience. [1][2][11] - Structural opportunities in convertible bonds are better than overall market conditions. Low - premium varieties are more resilient, and mid - and low - priced convertible bonds have strong gaming value. Investors can select varieties with "double - low" (low price + low premium) or "low price + high elasticity" potential. [2][11] - Convertible bonds in a high - valuation state show stagnation and vulnerability. However, there are positive signals on the supply side, and the market may improve marginally in 2026. The recent tariff issue is likely to be a one - time shock rather than a trend - setting impact. [4][9][10] 3. Summary by Directory 3.1 1. Convertible Bond Weekly Thinking - High - valuation convertible bonds show stagnation and vulnerability. ETF and "fixed - income +" funds have small net outflows, but the pace has slowed. [9] - There are positive signals on the supply side, with an increase in issuance plans and faster regulatory approvals, which may alleviate the "few bonds and high prices" situation. [4][10] - The recent tariff issue is more of a threat than an actual operation, and the market may view it as a one - time shock. [4][10] - Short - term equity market adjustment is expected, but convertible bonds are likely to be resilient. Structural opportunities are better, and specific convertible bonds are recommended for October. [11][12] 3.2 2. Convertible Bond Market Tracking - **2.1 Convertible Bond Market Conditions**: The document provides the performance of various convertible bond indices in different time periods, such as the WanDe Convertible Bond Energy Index, WanDe Convertible Bond Materials Index, etc. [17] - **2.2 Convertible Bond Individual Securities**: The document does not provide specific summarized content for this part. - **2.3 Convertible Bond Valuation**: The document shows the valuation trends of different types of convertible bonds, including bond - type, balanced, and stock - type convertible bonds. [21][23][25] - **2.4 Convertible Bond Price**: The document presents the proportion trend of high - price bonds and the median price trend of convertible bonds. [32][34]

Group 1 - The bond market risks have not been resolved, and there is still room for adjustment within the year, with an upper limit potentially exceeding 1.8% [1] - Market expectations regarding monetary policy provide some support at key levels, but these expectations can eventually lead to either a positive or negative outcome [1] - The trend of "strong stocks and weak bonds" remains unchanged despite overseas interest rate cuts [1] Group 2 - The equity market is currently in a phase of risk appetite increase, and overseas interest rate cuts may provide emotional support [1] - Institutional reallocation between equity and bond assets continues, making it easier for bond rates to rise but harder for them to fall [1] - Recent rebounds in domestic commodities driven by policy expectation speculation may face a phase of correction [1]

Group 1: Macro Asset Tracking - The bond market showed a low opening and high closing trend, with a slight increase. The expectation is that the bond market will hit a new low for the year, targeting the low point around September 30, 2024, when the policy shifted last year [1][11] - The A-share market is maintaining a bullish trend, with a significant increase in trading volume and volatility after breaking the high point from October 8 last year. The outlook suggests that the stock market will continue to outperform the bond market [1][11] - The overall market is experiencing a V-shaped reversal, with the ChiNext index leading the gains among the three major indices. The total trading volume reached 2.36 trillion, with over 3,500 stocks rising, indicating a strong market consolidation at high levels [2][14] Group 2: A-Share Market Insights - The current Equity Risk Premium (ERP) for the A-share market is at 4.02%, which is significantly lower than historical lows observed in 2008, 2015, and 2021, indicating potential for further declines [2][14] - The ratio of total A-share market capitalization to GDP is currently at 0.75, which is 77% and 43% lower than the historical peaks in January 2008 and June 2015, respectively, suggesting room for growth in market capitalization relative to the economy [2][14] - The ratio of household deposits to A-share market capitalization is at 1.7, indicating that the process of reallocating household funds into the stock market may still be ongoing [2][14] Group 3: U.S. Market Overview - The U.S. stock market saw all three major indices rise, with the Nasdaq increasing by 0.94%, the Dow Jones by 0.11%, and the S&P 500 by 0.47%. The weak employment data has set the stage for a rate cut in September, although the market's pricing of a 50 basis point cut may be overly optimistic [3][17] - The U.S. economy remains robust, with second-quarter GDP growth revised upward, supporting a stable employment market. The labor market's slowdown provides a basis for the Federal Reserve's dovish stance [3][17] Group 4: Currency Market Analysis - The onshore RMB against the USD was reported at 7.1151, down 83 basis points from the previous close. The weak non-farm data has led to a decline in the dollar, while the offshore RMB has returned to an upward trend [4][23] - The recommendation is to short the dollar with a stop loss at the 99 level, while also suggesting that investing in A-shares, Hong Kong stocks, or precious metals like gold and silver may be better options compared to shorting the dollar [4][23] Group 5: Commodity Market Trends - The Wenhua Commodity Index rose by 0.66%, with coal and construction materials leading the gains, while corn and live pig sectors lagged. The index is supported at the intersection of the 60-day and half-year moving averages [5][26] - Despite the potential for a breakdown below support levels, the strong stock market and weak bond market combination suggests a bullish outlook for commodities, with a focus on long positions while managing risk [5][26] Group 6: Important Policies and News - The Ministry of Commerce and nine other departments released measures to expand service consumption, proposing 19 initiatives to stimulate consumer activity [6][29] - The People's Bank of China emphasized the need for global financial governance reform in response to new challenges in the financial stability framework [6][29] - Guangdong province is promoting AI integration in the toy industry, exploring new market opportunities through the combination of AI, toys, and robotics [6][29]

Group 1: Summary of the Core View - The current economic readings are rather dull, with the overall production growth slowing down in August. The single - month economic data is prone to fluctuations, but the internal economic momentum continues to recover [4][5][7] - The contradiction in current asset pricing does not lie in the fundamentals. The "stock - strong, bond - weak" situation is the result of institutional re - allocation of stock and bond assets, and single - month data fluctuations will not change the current risk - preference environment or the expected direction of institutional asset re - allocation [6] - When dealing with the bond market, one should adopt a trading - based approach, focus on the opportunities of structural term spreads and variety spreads, as the bond market remains a "weak asset" and single - month economic data is unlikely to change the trend [9] Group 2: Industry Data Analysis Industrial Industry - In the upstream of the industrial industry, the production of non - ferrous metal processing, non - metallic products, and chemical raw material products has accelerated year - on - year. In the mid - and downstream equipment and consumer goods manufacturing, the output growth of the pharmaceutical and special equipment production has accelerated. The growth rate of industrial added value in other industries has declined compared with last month [4] - In August, the industrial added value increased by 5.2% year - on - year, with a growth rate 0.5 percentage points lower than that of last month. Among the three major sectors, the production growth rate of the mining industry has rebounded, while the year - on - year growth rates of the manufacturing and the production and supply of electricity, heat, gas, and water have declined [7] Service Industry - The growth rate of service industry production has slowed down. In August, the service industry production index increased by 5.6% year - on - year, with a growth rate 0.2 percentage points lower than that of last month. The prosperity of producer services such as information technology, finance, and leasing is higher than the overall service industry [4] Investment - The growth rate of fixed - asset investment has slowed down. In August, the completed amount of fixed - asset investment decreased by 7.15% year - on - year, 1.81 percentage points lower than that of last month. Among them, real estate, infrastructure, and manufacturing investments decreased by 19.5%, 6.4%, and 1.3% year - on - year respectively [8] - Real estate sales and investment continue to bottom out, with the decline in sales prices narrowing. In August, the sales volume and sales area of commercial housing decreased by 14% and 10.6% year - on - year respectively. The real estate new construction area and completion area decreased by 20.3% and 21.4% year - on - year respectively [8] Consumption - In terms of consumption, catering consumption is recovering, while commodity consumption has slowed down, which may be affected by the "national subsidy" rhythm adjustment in some provinces. In August, the total retail sales of consumer goods increased by 3.4% year - on - year, with a growth rate 0.3 percentage points lower than that of last month [8] - Among commodity consumption, the year - on - year growth rates of gold and silver jewelry, household appliances, and communication equipment have changed significantly compared with last month. The sales volume of gold and silver jewelry may be related to the rapid rise in precious metal prices, while the slowdown of household appliances and communication equipment may be affected by the "national subsidy" rhythm adjustment after the "618" promotion [8] Group 3: Impact of Economic Data - After the release of economic data, bond yields first declined and then rose. The bond market has experienced an oversold rebound recently. After the release of economic data, the long - term bond yields rebounded, but then rose again [7] - Single - month economic data is affected by policy rhythm changes and structural transformation, and its fluctuations are unlikely to change the overall trend. Although the overall economic data in August is not outstanding, the internal economic momentum continues to recover [5][6]