1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Viewpoints of the Report - The scale of passive index funds remained stable in Q3 2025, with the proportion of ETFs increasing. The scale of non - monetary index funds reached 6.72 trillion yuan, an increase of 1.11 trillion yuan from the previous quarter [1]. - The gap between the top two index fund managers narrowed. The top ten managers accounted for 69.65% of the index fund scale, with a slight increase in concentration compared to the previous quarter [1]. - The institutional holding ratio of industry - themed products in ETFs increased, while that of Smart Beta decreased. The institutional holding ratio of all ETFs in China after penetrating the linked funds was 62.47% as of mid - 2025, an increase from the end of 2024 [1]. - The number and scale of newly - issued index funds increased in Q3 2025. A total of 292 index funds were newly established, raising 242.407 billion yuan, with an increase in both the number and scale compared to Q2 [1]. - The application for industry - themed products was stable. In Q3 2025, 222 index funds were approved, slightly more than the previous quarter, and industry - themed index funds were the most approved type [1]. - ETFs that performed well in Q3 were mainly concentrated in growth - related products, and Hong Kong - themed products had high trading activity [1]. 3. Summary According to the Table of Contents 3.1 2025 Q3 Index Fund Market Scale Changes - The total asset scale of 2,823 non - monetary index funds reached 6.72 trillion yuan, an increase of 1.11 trillion yuan from the previous quarter. The scale of ETFs increased by about 1.24 trillion yuan, and the proportion of ETFs increased by more than 6 percentage points [1][4]. - The proportion of domestic stock broad - based in ETFs declined to 47%, while the proportion of industry - themed products rebounded to about 20% [7]. - The top ten target indexes with the largest index fund scale accounted for 41.34% of the total scale, slightly lower than the previous quarter. The top three target indexes were the CSI 300 Index, CSI A500, and SSE 50 Index [14]. - The top ten index fund managers accounted for 69.65% of the index fund scale, with a slight increase in concentration. The top three were Huaxia Fund, E Fund, and Huatai - Peregrine Fund, and the gap between E Fund and Huaxia Fund narrowed to less than 20 billion yuan [15]. - The top ten index funds in scale were all ETFs, mostly broad - based. Among industry - themed products, Cathay Securities ETF ranked first, and the scale of Fuling CSI Hong Kong Stock Connect Internet ETF nearly doubled [17][19]. 3.2 ETF Holder Changes - As of mid - 2025, the institutional holding ratio of all ETFs in China after penetrating the linked funds was 62.47%, an increase from the end of 2024. The institutional holding ratio of industry - themed and cross - border products increased significantly, while that of Smart Beta decreased [24]. - By index, the institutional holding ratio of broad - based indexes increased, the institutional holding ratio of the Sci - tech Innovation 50 Index increased to 34%, and the institutional holding ratio of the securities company index increased significantly, while that of dividend - related products decreased significantly [28]. - According to the top ten holders of ETFs in the 2025 semi - annual report, Central Huijin's holding amount continued to rise, and insurance funds maintained a high position. China Life's holding ratio of industry - themed products in stock ETFs continued to increase, while that of Smart Beta decreased [30][33]. 3.3 Q3 Index Fund Raising and Application Situation - In Q3 2025, 292 index funds were newly established, raising 242.407 billion yuan, an increase in both the number and scale compared to Q2. The main source was domestic stock index funds [36]. - Among stock index funds, the fund with the largest raising scale was Huaxia SSE Sci - tech Innovation Artificial Intelligence ETF Linked A, with a combined raising scale of 3.957 billion yuan. The number of enhanced index funds increased, with 54 funds established, raising 36.996 billion yuan [39]. - For bond index funds, 31 funds raised 96.191 billion yuan, a significant increase from the previous quarter. The newly established bond index funds mainly tracked the AAA sci - tech innovation bond index [39]. - In terms of product form, ETFs raised 117 funds, with a total scale of 119.657 billion yuan; ordinary index funds had 103 funds, raising 89.175 billion yuan; and ETF linkages raised 72 funds, with a scale of 33.576 billion yuan [41]. - By target index type, industry - themed funds, bonds, and Smart Beta were the three product types with the fastest - growing issuance numbers this quarter, and the raising scales of industry - themed and bond products increased rapidly [41]. 3.4 Q3 ETF Market Performance - In domestic stock broad - based ETFs, the top five products in terms of Q3 yield all tracked the Sci - tech Innovation and Entrepreneurship 50 Index. In cross - border broad - based ETFs, the best - performing product was E Fund Hang Seng Hong Kong Stock Connect New Economy ETF, with a quarterly yield of 22.39%. In industry - themed ETFs, the product with the highest quarterly yield was Cathay CSI All - Share Communication Equipment ETF, with an interval yield of 84.04%. In Smart Beta ETFs, the products with top - ranked quarterly yields were mainly related to ChiNext growth and Sci - tech Innovation Board growth [46]. - In terms of daily average trading volume in Q3, among domestic broad - based index funds, the top five were Huaxia SSE Sci - tech Innovation 50 ETF, Huaxia CSI A500 ETF, E Fund ChiNext ETF, Huatai - Peregrine CSI 300 ETF, and Southern CSI A500 ETF, with daily average trading volumes all above 3 billion yuan. Among cross - border broad - based ETFs, the ones with high daily average trading volumes were mainly NASDAQ ETFs. Among industry - themed ETFs, the top five in daily average trading volume were all Hong Kong - themed products, and the product with the largest daily average trading volume was E Fund CSI Hong Kong Securities Investment Theme ETF, with a trading volume of over 17 billion yuan. Among Smart Beta ETFs, 3 of the top 5 products in daily average trading volume were dividend - strategy ETFs, and 2 were free - cash - flow ETFs [48][49].