Core Viewpoint - The active equity funds have shown a remarkable recovery since September 24, 2023, with many products achieving significant returns, reflecting the resilience of the public fund industry [1][2]. Performance Recovery - Over 90% of active equity funds have recorded positive returns this year, with a batch of "doubling funds" emerging [2]. - As of September 18, 2024, 429 mixed equity funds and 112 ordinary stock funds have achieved over 100% returns since September 24, 2023, primarily driven by strong-performing leading public funds [2][5]. Sector Performance - The technology sector, represented by AI, and the pharmaceutical sector, represented by innovative drugs, have shown strong growth, with the CSI Artificial Intelligence Theme Index and the CSI Innovative Drug Industry Index rising by 134.77% and 62.88% respectively since September 24, 2023 [5]. - Many top-performing active equity funds have capitalized on opportunities in the pharmaceutical or technology sectors, with a significant portion of funds focusing on healthcare and technology growth [5]. Fund Manager Performance - A significant number of active equity fund managers have turned around their performance, with over 800 active equity funds reaching historical net asset value highs in the past month [5][6]. - Despite many active equity funds still in the process of recovering from previous losses, their short-term performance has significantly improved, contributing to long-term growth [5]. Comparison of Active and Passive Funds - The average performance of ordinary stock funds, mixed equity funds, and passive index funds has become closely aligned, with ordinary stock funds averaging 59.55%, mixed equity funds at 58.57%, and passive index funds at 60.21% from September 24, 2023, to September 18, 2024 [7][8]. - The challenge for active fund managers to outperform passive funds has intensified, with only 13.4% of active funds beating the average return of passive funds in 2024, a significant drop from the previous year [8]. Long-term Investment Perspective - While active equity funds are influenced by industry cycles, there are still long-term standout products in the market, indicating that active funds are not inherently inferior to passive index funds [9]. - Investors are encouraged to focus on long-term performance rather than short-term results when selecting funds that align with their investment needs [9].

Core Insights - The public REITs market is experiencing a recovery, highlighting its long-term investment value [1] Group 1 - The resurgence of public REITs indicates a positive trend in the market, attracting investor interest [1] - Long-term allocation in public REITs is becoming increasingly attractive due to their stable returns and growth potential [1] - The recovery is supported by favorable economic conditions and a growing demand for real estate investments [1]

Core Viewpoint - The public REITs market has shown signs of recovery after a period of decline, with several funds experiencing significant gains, indicating a potential stabilization in the market [1][2]. Market Performance - On September 4, the CSI REITs All Return Index rose by 0.42%, with multiple public REITs gaining over 2%, including a 3.1% increase in the China Merchants Fund Shekou Rental Housing REIT [1][2]. - The previous week (August 25-29), the index recorded a 1.06% increase, closing at 1073.33 points [2]. - There is a noticeable differentiation within public REITs, with property-type REITs increasing by 1.55% and franchise-type REITs by 0.87% [2]. Year-to-Date Performance - As of September 4, 54 out of 58 listed REITs have achieved positive returns this year, with the Jia Shi Wu Mei Consumption REIT exceeding a 50% increase [3]. - Other notable performers include the Huaxia Dayuecheng Commercial REIT and the Bosera Tian Kai Industrial Park REIT, both with gains over 40% [3]. Market Challenges - The REITs market is currently under short-term pressure due to a high sentiment in the equity market, leading to reduced liquidity and significant index corrections [4]. - Among 47 public REITs, many have reported negative returns over the past 60 trading days, with four REITs experiencing declines exceeding 10% [4]. Financial Performance - For the first half of 2025, the overall revenue of REITs showed a slight increase of 0.6% year-on-year, while net profit decreased by 7.5% [6]. - The average cash distribution rate fell to 2.36%, a decline of 50 basis points year-on-year, and the average dividend rate dropped to 2.26%, down 146 basis points [6]. Long-term Investment Perspective - The current market conditions may present good long-term investment opportunities in public REITs, particularly in resilient sectors such as affordable housing and consumption [8][9]. - Investors are encouraged to adopt a long-term holding strategy to achieve better returns through reasonable asset allocation [9].