Group 1 - The core viewpoint of the report emphasizes the selection of converging constituent stocks for ETF allocation based on data as of July 31, 2025, with a focus on tracking the effectiveness of the allocation strategy [2][9]. - The best converging stock for the Sci-Tech Innovation Board Artificial Intelligence ETF (588930.SH) is identified as Hongsoft Technology (688088), which has a bottom valuation of 14 times PS based on its 2023 revenue [2][9]. - The report indicates that Hongsoft Technology's stock price has mostly fluctuated below the expected fundamental value for 2027, which is calculated as the consensus expected revenue for 2027 multiplied by 14 times PS [2][9]. Group 2 - The report provides a robust profit forecast for Hongsoft Technology in 2025, with the closing price on August 27 being close to the expected fundamental value per share for 2027 [2][9]. - The average closing position from July 31 to August 27 was 23.78%, with a closing position of 10.7% on August 27 [2][9]. - From August 1 to August 27, 2025, the dynamic allocation strategy based on Hongsoft Technology yielded a Sharpe ratio slightly better than a buy-and-hold strategy, achieving a terminal return of 6.44% with a maximum drawdown of 0.71% [3][10].

Core Viewpoint - The FOF funds managed by companies like Changjiang Asset Management, ICBC Credit Suisse, Guotai Fund, and Huashang Fund have demonstrated strong performance in the market, leading the industry in returns [1][12]. Group 1: Performance of FOF Funds - As of July 28, the top-performing FOF funds over the past year include Changjiang Securities with a return of 29.09%, Guotai Fund at 25.29%, and ICBC Credit Suisse at 23.32% [1][13]. - The top two FOF funds are ICBC Rui Zhi Jin Qu Stock (FOF-LOF) A with a return of 49.17% and Guotai You Xuan Ling Hang One-Year Holding Period Mixed (FOF) at 49.16% [2][3]. Group 2: Investment Strategies - The investment strategy of ICBC Rui Zhi Jin Qu Stock (FOF-LOF) A includes a concentrated portfolio with the top ten holdings accounting for 67.20%, indicating a focused approach [5][7]. - The fund employs a barbell strategy, balancing aggressive investments in high-growth sectors like innovative pharmaceuticals with defensive positions in gold ETFs [7][10]. Group 3: Market Insights and Adjustments - The FOF funds have shown a keen ability to adapt to market changes, such as reducing exposure to US stocks while increasing holdings in Hong Kong and A-shares [8][11]. - The funds are focusing on sectors with high growth potential, including rare earths and innovative pharmaceuticals, which are expected to benefit from supply-side reforms and policy support [11][12]. Group 4: Future Outlook - The outlook for the FOF funds suggests a continued focus on sectors with strong fundamentals and potential for recovery, particularly in the context of policy shifts and market dynamics [12][16]. - The emphasis on dynamic asset allocation and ETF integration is expected to enhance the strategic value of FOF funds in capturing growth opportunities [12][17].

Investment Rating - The report maintains an "Increase" rating for the financial products sector [1]. Core Insights - The report emphasizes the importance of structural changes in the market, indicating that a turning point in market trends may be approaching [5][17]. - The overall market performance for the week of July 7 to July 11, 2025, showed positive returns across most indices, but rapid rotation among stocks suggests a preference for holding rather than chasing hot stocks [17][20]. - The macro model for July scored -5, indicating a potential dominance of large-cap value stocks, while the overall market may experience adjustments [24]. - The technical timing model indicates a high risk level for the market, suggesting that while the trend remains positive, the relative position may be too high [17][21]. Summary by Sections A-share Market Overview (July 7 - July 11, 2025) - Major broad indices showed varied performance, with the top three being the Wind Micro-Pan Daily Equal Weight Index (2.99%), CSI 1000 (2.36%), and the ChiNext Index (2.36%) [10]. - Style indices also varied, with small-cap value (2.71%) and small-cap growth (2.31%) leading, while large-cap value (-0.18%) lagged [11]. - Among the Shenwan first-level industry indices, real estate (6.12%), steel (4.41%), and non-bank financials (3.96%) performed best, while coal (-1.08%) and banks (-1.00%) underperformed [15]. A-share Market Outlook (July 14 - July 18, 2025) - The report suggests a focus on structural changes, with a potential turning point in market trends [17]. - The macro model indicates that the market may experience adjustments, with a focus on performance post-earnings announcements [17][24]. - The report recommends a balanced ETF allocation strategy, anticipating a relatively volatile market with ongoing structural opportunities [65][66]. Fund Allocation Recommendations - The report advocates for a balanced ETF allocation strategy, emphasizing the importance of selecting funds with a minimum one-year establishment and a fund size exceeding 100 million [65][66].

Core Viewpoint - The article discusses the fluctuations in the China Securities Major Consumer Index and highlights the impact of recent "alcohol bans" on the liquor industry, suggesting a potential transformation and upgrade in the sector due to new regulations [1]. Group 1: Market Performance - As of June 17, 2025, the China Securities Major Consumer Index experienced mixed performance among its constituent stocks, with Shanxi Fenjiu leading with a 1.79% increase, while XinNuoWei saw a decline of 3.06% [1]. - The Major Consumer ETF (159672) rose by 0.13%, with a latest price of 0.75 yuan [1]. Group 2: Regulatory Impact - Since May 2025, multiple regions have actively implemented "alcohol bans," leading to increased market concerns regarding the liquor sector [1]. - The new regulations are expected to drive the liquor industry towards transformation and upgrade, focusing on quality innovation to meet diverse consumer demands [1]. Group 3: Industry Valuation - The liquor sector is currently experiencing a downturn, with valuations at the bottom range and low fundamental expectations, making it more attractive for investment after a rapid decline [1]. - The competition within the liquor industry is intensifying, with a trend towards concentration, where leading companies are expanding their market share through brand barriers and strategic upgrades [1]. Group 4: ETF Performance Metrics - As of June 16, 2025, the Major Consumer ETF has recorded a maximum monthly return of 24.35% since its inception, with an average monthly return of 4.87% [2]. - The ETF's management fee is 0.50%, and the custody fee is 0.10%, which are among the lowest in comparable funds [2]. - The latest price-to-earnings ratio (PE-TTM) for the index tracked by the ETF is 18.78, indicating a valuation lower than 99.6% of the time over the past year, suggesting historical low valuations [2]. Group 5: Top Holdings - As of May 30, 2025, the top ten weighted stocks in the China Securities Major Consumer Index account for 67.15% of the index, with notable companies including Yili Group, Kweichow Moutai, and Wuliangye [3].

Group 1 - The event focused on investment opportunities in the Sci-Tech Innovation Board and ETF allocation strategies, aiming to provide professional insights for investors [1][2] - The Sci-Tech Innovation Board has achieved significant results in institutional innovation and market ecology optimization over the past six years, providing strong support for technology innovation enterprises [2][3] - The event attracted numerous institutional and individual investors, fostering a lively atmosphere for exchange [2][3] Group 2 - The Shanghai Stock Exchange presented a comprehensive overview of the development of the Sci-Tech Innovation Board and the latest trends in the ETF market, highlighting over 20 newly released indices that support key areas of technology innovation [3] - Huazhang Fund's Chief Index Investment Officer discussed the unique investment value of the Sci-Tech Innovation Board in the "hard technology" sector and shared strategies for capturing investment opportunities through related ETF products [3] - Southwest Securities' Chief Analyst emphasized the core role of ETFs in optimizing asset allocation, providing practical investment strategies tailored to different risk preferences [6] Group 3 - The event was part of the Shanghai Stock Exchange's "Sci-Tech Leadership" theme month, showcasing the collaboration of the three institutions to enhance investor understanding of the Sci-Tech Innovation Board and Shanghai ETFs [6][8] - Huazhang Fund committed to enhancing investor services and providing efficient index investment tools, aligning with regulatory initiatives for high-quality development in public funds [8]

Core Viewpoint - BYD's market value has surpassed CATL for the first time in nearly seven years, reclaiming the title of the highest market value stock in the Shenzhen market, attracting more investment funds [1][3][4]. Group 1: Market Position and Fund Allocation - As of the latest data, BYD's market value stands at 1.07 trillion yuan, slightly ahead of CATL, which is significantly higher than the third and fourth ranked companies, Midea Group and Wuliangye, with market values of 558 billion yuan and 512 billion yuan respectively [4]. - In the recently disclosed public fund annual reports, CATL has become the top holding stock, surpassing Kweichow Moutai, while BYD's fund holdings are only half of CATL's, with a total market value of less than a quarter of CATL's [2][5]. - A total of 2,861 funds have allocated positions in CATL, with a combined holding market value of 178.575 billion yuan, accounting for 17.2% of CATL's circulating shares, while BYD's market value held by public funds ranks only 17th, at 43.084 billion yuan [5][6]. Group 2: Investment Preferences and Trends - Public fund managers prefer CATL due to its leading position in the power battery sector and stable annual performance, while BYD's performance is more affected by competition in the vehicle market and policy fluctuations [7][8]. - The growth of ETFs has significantly influenced the pricing power of CATL and BYD, with CATL benefiting from its high weight in broad-based indices, attracting more passive fund investments [8][9]. - CATL is the second-largest weighted stock in the CSI 300 index, with a weight of approximately 3.22%, while BYD is the seventh with a weight of about 1.62% [9]. Group 3: Changing Investment Aesthetics - Public funds have faced criticism for their traditional reliance on financial metrics like P/E and P/B ratios, favoring companies with stable profits and predictable cash flows, which makes it difficult for high-growth companies like BYD to fit into traditional screening models [10][12]. - The investment aesthetic is shifting towards industry leaders, moving away from traditional metrics of low valuation and high growth, indicating a potential for greater consensus on industry leaders in the market [12].