Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese equity market**, specifically the **A-share market** and foreign fund flows into Chinese equities. Core Insights and Arguments - **Foreign Inflows**: In September 2025, foreign inflows into Chinese equities rebounded to **US$4.6 billion**, the highest level since November 2024, driven by **US$5.2 billion** inflows from passive funds and **US$0.6 billion** outflows from active funds [11][12][34] - **Year-to-Date Performance**: As of September 30, 2025, cumulative foreign passive inflows reached **US$18 billion**, significantly exceeding the **US$7 billion** recorded in 2024. Cumulative foreign active outflows were **US$12 billion**, a decrease from **US$24 billion** in 2024 [11][12] - **Market Liquidity**: Retail participation in the A-share market improved, with onshore mutual funds showing strong growth in assets under management (AUM). However, private fund growth moderated after a sharp increase in July [12][21] - **Sector Performance**: Active fund managers increased their positions in **Capital Goods** and **Semiconductors**, while reducing exposure in **Insurance** and **Consumer Durables & Apparels** [11][12] - **Company-Specific Changes**: Notable increases in holdings were observed for **Alibaba**, **CATL**, and **JD**, while **Tencent**, **Ping An Insurance**, and **Popmart** saw reductions in positions [11][12][62] Additional Important Insights - **Retail Investor Activity**: The daily average net inflow of small A-share orders reached **Rmb34 billion** in August, comparable to early 2025 levels but still below the peak of **Rmb48 billion** in October 2024. The current rebound is more selective, focusing on sectors like **Tech**, **AI**, **Materials**, and **Biotech** [17][21] - **Private Fund AUM**: Onshore private funds experienced a sharp increase of **Rmb325 billion** in July, but growth normalized in August, indicating a return to typical investment patterns among high-net-worth individuals [21][24] - **Foreign Passive Fund Flows**: Flows from foreign passive funds tracking the **CSI 300** remained largely unchanged in September, suggesting limited participation from foreign investors in the A-share market during that month [31][34] This summary encapsulates the key points from the conference call, highlighting the dynamics of the Chinese equity market, fund flows, and sector-specific trends.