Market Overview - The Shanghai Composite Index fell by 0.4% to close at 3931.05 points, with a high of 3967.97 points during the day [1] - The Shenzhen Component Index decreased by 0.76% to 12980.82 points, reaching a peak of 13226.04 points [1] - The ChiNext Index dropped by 1.12% to 3042.34 points, with a maximum of 3137.07 points [1] ETF Market Performance - The median return of stock ETFs was -0.67% [2] - The highest performing scale index ETF was the China Southern Shenzhen 100 ETF with a return of 0.34% [2] - The top industry index ETF was the China Tai Zhongzheng All Index Building Materials ETF, yielding 2.02% [2] - The highest return among strategy index ETFs was the China Tai Baichuan Zhongzheng Dividend Low Volatility ETF at 0.74% [2] - The best performing thematic index ETF was the Yinhua Zhongzheng Mainland Real Estate Theme ETF, with a return of 0.84% [2] ETF Performance Rankings - The top three ETFs by return were: - Guotai Zhongzheng All Index Building Materials ETF (2.02%) [4] - Fuguo Zhongzheng All Index Building Materials ETF (1.56%) [4] - Huabao Zhongzheng 800 Real Estate ETF (1.52%) [4] - The worst performing ETFs included: - Penghua SSE Sci-Tech Innovation Board New Energy ETF (-3.01%) [4] - Yifangda SSE Sci-Tech Innovation Board New Energy ETF (-2.91%) [4] - Fuguo SSE Sci-Tech Innovation Board New Energy ETF (-2.78%) [4] ETF Fund Flows - The top three ETFs by fund inflow were: - Southern Zhongzheng 500 ETF (7.6 billion) [6] - Huaxia SSE Sci-Tech Innovation Board 50 Component ETF (7.59 billion) [6] - Southern Zhongzheng 1000 ETF (4.18 billion) [6] - The largest outflows were from: - Huabao Zhongzheng Bank ETF (4.33 billion) [6] - Huatai Baichuan SSE 300 ETF (4.07 billion) [6] - Huabao Zhongzheng Financial Technology Theme ETF (3.25 billion) [6] ETF Margin Trading Overview - The highest margin buy amounts were: - Huaxia SSE Sci-Tech Innovation Board 50 Component ETF (5.56 billion) [8] - Guotai Zhongzheng All Index Securities Company ETF (4.8 billion) [8] - Yifangda ChiNext ETF (4.78 billion) [8] - The largest margin sell amounts were: - Southern Zhongzheng 500 ETF (37.88 million) [8] - Huatai Baichuan SSE 300 ETF (37.87 million) [8] - Huaxia Zhongzheng A500 ETF (25.01 million) [8] Institutional Insights - Huafu Securities suggests that the building materials capacity cycle may reach an inflection point due to accelerated expectations of "anti-involution" [9] - The combination of declining interest rates and monetary support for housing may stabilize the real estate market, potentially boosting post-cycle demand [9] - Debon Securities highlights that undervalued financial stocks, such as insurance and banks, possess defensive allocation value amid a weak market [10]

1. Report Industry Investment Rating - Not provided in the content 2. Core Views of the Report - For stock index futures, adopt a defensive allocation strategy as the equity market is weak. The inflow of funds into the price - rising chain has slowed, and the market is in an observation period for sector rotation, with risk preference declining [1][7]. - For stock index options, continue to hold covered strategies for defense. The market sentiment has stabilized, but there is no clear capital main - line yet [2][8]. - For treasury bond futures, the market divergence is large. Although the bond market has been weak recently, it is expected to be oscillating with an upward bias towards the end of the year due to potential broad - money policies and strong allocation demand [3][8][9]. 3. Summary by Relevant Catalogs 3.1 Market Views 3.1.1 Stock Index Futures - **Data**: IF, IH, IC, IM's current - month contract basis points are - 4.89, - 2.35, - 6.15, 3.19 respectively, with a change of - 6.30, - 2.93, - 7.93, 5.69 points compared to the previous period. Their current - month and next - month contract spreads are 18.2, 7.0, 61.8, 92.2 points respectively, with a change of 3.6, 1.0, - 11.2, - 1.6 points. The total positions of IF, IH, IC, IM changed by - 6521, - 2454, - 5507, 2119 hands [7]. - **Logic**: The equity market was weak on Wednesday. The All - A index fell 0.3%, with over 4000 stocks declining. Only the price - rising chain and banks were resilient. The inflow of funds into the price - rising chain has slowed, and the market is in a sector rotation observation period, so a short - term cautious allocation is recommended [7]. - **Operation Suggestion**: Hold IM + Dividend [7]. 3.1.2 Stock Index Options - **Data**: The trading volume of each option variety increased slightly by 1.08%, with liquidity rising for 4 consecutive trading days but the increase rate slowing. The sentiment index (PCR of open interest) recovered, and the implied volatility decreased by an average of 1.14% [2][8]. - **Logic**: The equity index was oscillating and differentiated, with the Shanghai Composite Index rising 0.18%. Since there is no clear capital main - line, continue to hold covered strategies for defense [2][8]. - **Operation Suggestion**: Covered strategy [8]. 3.1.3 Treasury Bond Futures - **Data**: The trading volumes of T, TF, TS, TL's current - quarter contracts are 66875, 54572, 28995, 100953 hands respectively, with a 1 - day change of 3202, 2656, - 5728, 11525 hands. Their open interests are 154751, 88573, 42295, 80575 hands respectively, with a 1 - day change of - 22730, - 12266, - 7951, - 16039 hands. Other data such as spreads and basis points are also provided [8]. - **Logic**: Treasury bond futures closed down across the board. The bond market was weak but the decline was not large, mainly due to market divergence on the central bank's broad - money operations. Towards the end of the year, the bond market is expected to be oscillating with an upward bias [3][8][9]. - **Operation Suggestion**: Trend strategy: oscillating with an upward bias; Hedging strategy: pay attention to long - position substitution at high basis points; Basis strategy: pay attention to basis widening; Curve strategy: the curve may remain steep [9]. 3.2 Economic Calendar - It includes data such as the Eurozone's CPI in October (both month - on - month and year - on - year), the US retail sales and CPI in October, and the US unemployment - related data from September to November [10]. 3.3 Important Information and News Tracking - In October, the consumer market maintained a steady growth trend, with the total retail sales of consumer goods reaching 4.63 trillion yuan, a year - on - year increase of 2.9%. From January to October, the total retail sales of consumer goods were 41.2 trillion yuan, a 4.3% increase [11]. - The Ministry of Finance has pre - allocated part of the central - fiscal subsidy funds for urban affordable housing projects in 2026 [11]. 3.4 Derivatives Market Monitoring - **Stock Index Futures Data**: Not detailed in the provided content [12]. - **Stock Index Options Data**: Not detailed in the provided content [16]. - **Treasury Bond Futures Data**: Not detailed in the provided content [28].

Group 1 - The core viewpoint of the article highlights the continuous inflow of funds into the Hong Kong dividend low volatility ETF (520550), which has seen a net inflow for 10 consecutive days and reached a new high of 34 times this year, with the latest scale exceeding 5 billion [1] - The recent performance of the Hong Kong dividend market is attributed to an increase in defensive allocation demand following a relative decrease in risk appetite, as analyzed by Changjiang Securities' Chief of Alternative Strategies, Chen Jiemin [1] - Since the second quarter, the Hong Kong dividend has quickly recovered to pre-tariff impact levels, while the more elastic Hang Seng Technology Index has not yet reached its pre-tariff disruption peak, indicating that the Hong Kong dividend is benefiting from the defensive allocation demand [1] Group 2 - The Hong Kong dividend low volatility ETF (520550) offers the lowest market fee rate (comprehensive fee rate of 0.2%), which reduces holding costs, and its monthly dividend mechanism and T+0 trading characteristics enhance fund efficiency [2] - The ETF's holding structure includes mature industries such as finance and energy, providing a safety cushion, while a 5% weight limit on individual stocks helps achieve risk diversification and avoid "dividend yield traps" [2] - The related off-market fund, the招商恒生港股通高股息低波动联接 (A Class: 024029/C Class: 024030), is currently being issued, offering investors a new option for long-term allocation in quality Hong Kong dividend assets without the need for a securities account [2]