Core Viewpoint - The article discusses the opportunities and risks faced by Chinese enterprises as they expand into emerging markets, particularly in the context of the Belt and Road Initiative and the changing global trade environment [1][3]. Group 1: Trade Environment and Market Trends - In the first three quarters of 2025, China's imports and exports to Belt and Road countries reached 17.37 trillion yuan, an increase of 6.2%, accounting for 51.7% of total trade value, up by 1.1 percentage points [1]. - The growth in trade with ASEAN, Latin America, Africa, and Central Asia was 9.6%, 3.9%, 19.5%, and 16.7% respectively, indicating a diversification of China's export markets [1]. - The overall credit risk for small and medium-sized foreign trade enterprises has been on the rise, with an average annual increase of 7.2% in the risk index over the past three years [3][4]. Group 2: Risks in Emerging Markets - The global trade environment is increasingly influenced by protectionism and resource nationalism, leading to heightened uncertainty and risk in international trade [4]. - Labor-intensive industries like textiles and light manufacturing face challenges from trade barriers and raw material cost fluctuations, while technology-intensive sectors like electronics and new energy vehicles encounter rising compliance costs and intense competition [4]. - Emerging market currencies are often volatile, with examples like the Turkish lira experiencing daily fluctuations exceeding 10% [8]. Group 3: Compliance and Legal Risks - Companies expanding into Southeast Asia must be aware of environmental compliance and ESG requirements, as neglecting these can lead to significant penalties and operational disruptions [9]. - Intellectual property risks, such as trademark squatting and technology leakage, are prevalent in Southeast Asia, necessitating proactive measures from companies [9]. Group 4: Strategies for Risk Management - Companies are advised to conduct compliance planning before entering new markets, ensuring that tax compliance is integrated into business strategy [11]. - For managing currency risks, companies can use hedging strategies involving direct transactions with the renminbi or through a two-step process involving the US dollar [11]. - Establishing a knowledge property defense matrix is recommended, including simultaneous IP registration in target countries and monitoring mechanisms to track trademark registrations [13].

Market Overview - The Shanghai Composite Index fell by 0.07% on October 22, with nine industries experiencing gains, led by the oil and petrochemical sector, which rose by 1.58% [1] - The light industry manufacturing sector saw a slight increase of 0.06% [1] - The sectors with the largest declines were non-ferrous metals and electrical equipment, which fell by 1.36% and 1.29%, respectively [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 44.231 billion yuan, with only four industries seeing net inflows [1] - The oil and petrochemical industry had the highest net inflow of 558 million yuan, followed by the home appliance sector with a net inflow of 479 million yuan [1] - The electronic industry experienced the largest net outflow, totaling 8.021 billion yuan, followed by the electrical equipment sector with a net outflow of 6.284 billion yuan [1] Light Industry Manufacturing Sector - The light industry manufacturing sector had a net inflow of 320 million yuan, with 85 out of 158 stocks rising [2] - The top stock in terms of net inflow was C Marco, with an inflow of 436 million yuan, followed by Sea Owl Home and Pearl River Piano with inflows of 131 million yuan and 69.946 million yuan, respectively [2] - The sector also had 15 stocks with net outflows exceeding 10 million yuan, with the largest outflows from Jingxing Paper and Yuma Technology, at 75.173 million yuan and 29.970 million yuan, respectively [2][4] Light Industry Manufacturing Capital Inflow and Outflow - The top inflow stocks in the light industry manufacturing sector included: - C Marco: +128.80%, turnover rate 77.36%, inflow 435.507 million yuan - Sea Owl Home: +10.11%, turnover rate 26.82%, inflow 130.994 million yuan - Pearl River Piano: +9.96%, turnover rate 2.88%, inflow 69.947 million yuan [2] - The top outflow stocks included: - Jingxing Paper: -0.29%, turnover rate 21.69%, outflow -75.173 million yuan - Yuma Technology: -4.92%, turnover rate 5.80%, outflow -29.970 million yuan - Dongfeng Group: +2.49%, turnover rate 6.12%, outflow -28.599 million yuan [4]

Consumption - Post-holiday consumption has shown a slight decline, with retail and wholesale automobile sales significantly dropping compared to the previous week, indicating a temporary "vacuum" in market demand after pre-holiday promotions[6] - The wholesale price index for agricultural products increased by 0.4% month-on-month, while the price of Moutai liquor has significantly decreased, reflecting a broader trend of price adjustments in consumer goods[6] - Service consumption has returned to normal levels, with a notable decline in movie attendance and tourism prices, indicating the end of the holiday "pulse" effect[7] Investment - Infrastructure investment has seen a cumulative issuance of special bonds amounting to CNY 3.81 trillion as of October 18, with an additional CNY 133.88 billion issued in October, suggesting a supportive funding environment for infrastructure projects[17] - Real estate transactions in 30 cities have shown a seasonal rebound, with first-tier and third-tier cities experiencing a narrowing of year-on-year declines, while second-tier cities have turned positive[17] Trade and Export - Domestic export prices have decreased by 4.1% month-on-month, while import prices fell by 2.2%, indicating weak demand in non-mainline shipping routes[23] - The Shanghai and Ningbo export container price indices increased by 12.9% and 16.8% respectively, reflecting a recovery in demand for mainline shipping routes post-holiday[23] Production - Most production sectors have shown improvement post-holiday, with coal consumption in coastal provinces increasing, although steel production has seen a mixed performance with some declines in output[26] - The operating rate for asphalt has slightly increased, indicating a gradual recovery in construction activities following the holiday[17] Inventory and Prices - Coal inventories at ports have significantly decreased, while cement inventory ratios have slightly increased, reflecting varying demand across sectors[36] - Consumer prices have shown a slight overall increase, while industrial prices have generally declined, with the PPI for industrial products decreasing by 1.1% month-on-month[38] Liquidity - The central bank has conducted a net withdrawal of CNY 231.9 billion to maintain liquidity stability, with the dollar index declining by 27 basis points, indicating a stable overall liquidity environment[42]

Investment Rating - The investment rating for the light industry manufacturing sector is "Positive" [2] Core Insights - The report emphasizes the importance of valuation shifts in Hong Kong's new consumption sector while advocating for a stable investment in traditional leading companies [2] - The paper discusses various segments within the light industry, including paper manufacturing, exports, new tobacco products, smart glasses, gold and jewelry, two-wheeled vehicles, cross-border e-commerce, pet products, IP retail, and maternal and child products, highlighting growth opportunities and market dynamics [2][3][4][5] Summary by Relevant Sections Paper Manufacturing - UPM announced a two-week maintenance shutdown at its Fray Bentos pulp mill, which is expected to lead to a slight increase in pulp prices in Q4. The report anticipates a moderate recovery in cultural paper prices due to limited new capacity and upcoming publishing tenders [2][3] Exports - The report notes that Yi Yi plans to increase its stake in the "Gao Ye Jia" brand, which is expected to contribute significantly to profits by 2026. Additionally, a recent anti-dumping investigation in Canada may benefit compliant leading companies [2][3] New Tobacco Products - Smoore International reported Q3 revenue of 4.196 billion yuan, reflecting a 27.5% quarter-on-quarter increase. The company is expanding its presence in Europe with its HILO brand [2][3] Smart Glasses - Yingmu launched its first multi-SKU smart glasses, addressing user pain points with innovative designs and improved comfort [3] Gold and Jewelry - Lao Pu Gold and Chow Tai Fook are actively engaging in promotional activities, with Lao Pu announcing a price adjustment on October 26. The report expects a boost in sales due to seasonal demand and rising gold prices [3][4] Two-Wheeled Vehicles - Dahon's sales channels are performing well, with significant growth in both offline and online sales. The company is expanding its product range and enhancing its supply chain [3][4] Cross-Border E-Commerce - Karote is adjusting its strategy to mitigate the impact of US-China tariffs, focusing on product diversification and market expansion in the US and Japan [3][4] Pet Products - Zhongchong reported a 15.9% year-on-year increase in revenue for Q3, driven by strong performance in its self-owned brands and overseas business [4] IP Retail - Pop Mart is deepening its long-term IP strategy, while Miniso is accelerating its fashion crossover initiatives to enhance brand value [4][5] Maternal and Child Products - The report highlights the growth of the toy segment within maternal and child retail, driven by innovative store models and IP collaborations [5]

Core Viewpoint - The A-share market experienced a decline today, with the Shanghai Composite Index dropping by 1.39% and trading volume decreasing by 4.76% compared to the previous trading day [1] Industry Performance Summary - **Coal**: Slight increase of 0.12% with a transaction amount of 165.48 billion yuan, led by Antai Group which rose by 10.00% [1] - **Banking**: Minor decrease of 0.04% with a transaction amount of 302.99 billion yuan, led by Shanghai Bank which fell by 0.83% [1] - **Steel**: Decrease of 0.09% with a transaction amount of 133.07 billion yuan, led by Wujin Stainless Steel which dropped by 7.73% [1] - **Transportation**: Decrease of 0.11% with a transaction amount of 258.60 billion yuan, led by Pulutong which fell by 3.36% [1] - **Textiles and Apparel**: Decrease of 0.25% with a transaction amount of 119.79 billion yuan, led by Yingfeng Shares which dropped by 9.99% [1] - **Oil and Petrochemicals**: Decrease of 0.29% with a transaction amount of 83.04 billion yuan, led by Compton which fell by 3.19% [1] - **Agriculture, Forestry, Animal Husbandry, and Fishery**: Decrease of 0.45% with a transaction amount of 139.82 billion yuan, led by Aonong Biological which dropped by 4.66% [1] - **Real Estate**: Decrease of 0.52% with a transaction amount of 213.60 billion yuan, led by Wolong New Energy which fell by 7.80% [1] - **Utilities**: Decrease of 0.52% with a transaction amount of 302.04 billion yuan, led by *ST Lingda which dropped by 13.20% [1] - **Construction and Decoration**: Decrease of 0.75% with a transaction amount of 278.81 billion yuan, led by Kexin Development which fell by 8.15% [1] - **Home Appliances**: Decrease of 0.79% with a transaction amount of 217.37 billion yuan, led by Greer which dropped by 6.72% [1] - **Food and Beverage**: Decrease of 0.86% with a transaction amount of 194.67 billion yuan, led by Huaiqi Mountain which fell by 6.44% [1] - **Environmental Protection**: Decrease of 0.92% with a transaction amount of 140.79 billion yuan, led by Science which dropped by 6.68% [1] - **Retail**: Decrease of 0.97% with a transaction amount of 173.43 billion yuan, led by Ruoyu Chen which fell by 9.98% [1] - **Social Services**: Decrease of 1.07% with a transaction amount of 89.87 billion yuan, led by Chuangye Heima which dropped by 5.28% [1] - **Light Industry Manufacturing**: Decrease of 1.12% with a transaction amount of 135.66 billion yuan, led by Songyang Resources which fell by 10.02% [1] - **Pharmaceuticals and Biology**: Decrease of 1.16% with a transaction amount of 845.22 billion yuan, led by Warner Pharmaceuticals which dropped by 7.67% [1] - **Basic Chemicals**: Decrease of 1.21% with a transaction amount of 618.91 billion yuan, led by Xinong Shares which fell by 8.88% [1] - **Non-ferrous Metals**: Decrease of 1.24% with a transaction amount of 1149.11 billion yuan, led by Galaxy Magnetics which dropped by 7.14% [1] - **Telecommunications**: Decrease of 1.28% with a transaction amount of 806.90 billion yuan, led by Shijia Photon which fell by 17.59% [1] - **Non-bank Financials**: Decrease of 1.39% with a transaction amount of 491.74 billion yuan, led by Hainan Huatie which dropped by 6.17% [1] - **Building Materials**: Decrease of 1.66% with a transaction amount of 94.02 billion yuan, led by Yaopi Glass which fell by 7.82% [1] - **Media**: Decrease of 1.68% with a transaction amount of 263.96 billion yuan, led by Vision China which dropped by 9.93% [1] - **Beauty and Personal Care**: Decrease of 1.76% with a transaction amount of 33.94 billion yuan, led by Baiya Shares which fell by 4.98% [1] - **Computers**: Decrease of 2.38% with a transaction amount of 1005.18 billion yuan, led by Kaipu Cloud which dropped by 11.94% [1] - **Comprehensive**: Decrease of 2.42% with a transaction amount of 27.84 billion yuan, led by Dongyangguang which fell by 4.70% [1] - **Defense and Military Industry**: Decrease of 2.55% with a transaction amount of 387.73 billion yuan, led by Hangyu Technology which dropped by 8.38% [1] - **Machinery and Equipment**: Decrease of 2.68% with a transaction amount of 940.87 billion yuan, led by Yingweike which fell by 10.00% [1] - **Automobiles**: Decrease of 2.69% with a transaction amount of 775.95 billion yuan, led by Tianpu Shares which dropped by 10.00% [1] - **Electronics**: Decrease of 3.19% with a transaction amount of 2631.19 billion yuan, led by Nanya New Materials which fell by 16.26% [1] - **Electric Power Equipment**: Decrease of 3.79% with a transaction amount of 1881.52 billion yuan, led by Shenghong Shares which dropped by 11.80% [1]

Market Overview - On Thursday, the Shanghai Composite Index rose by 0.1%, the CSI 300 increased by 0.3%, the STAR Market 50 fell by 0.9%, the CSI 1000 decreased by 1.1%, the ChiNext Index rose by 0.4%, and the Hang Seng Index declined by 0.1% [4] - The best-performing sectors on Thursday were coal (+2.4%), banking (+1.4%), food and beverage (+1.0%), communication (+0.7%), and pharmaceutical biology (+0.2%). The worst-performing sectors were steel (-2.1%), non-ferrous metals (-2.1%), building materials (-1.9%), basic chemicals (-1.8%), and agriculture, forestry, animal husbandry, and fishery (-1.6%) [4] - The total trading volume of the Shanghai and Shenzhen markets on Thursday was 19,311 billion yuan, with a net inflow of 15.82 billion Hong Kong dollars from southbound funds [4] Important Insights Macroeconomic Research - In September, the Consumer Price Index (CPI) decreased by 0.3% year-on-year (previous value: -0.4%), which was lower than market expectations and prior forecasts (Wind consensus expectation: -0.1%). The month-on-month growth rate was 0.1% (previous value: 0%) [5] - The market anticipates that the Producer Price Index (PPI) year-on-year growth rate is likely to turn positive quickly [5] - The M1-M2 gap is narrowing, indicating a slowdown in the migration of household deposits. In September, fiscal spending exceeded revenue, leading to an increase in both household and corporate deposits [6] - The forecast for excess household savings from 2020 to September 2025 is expected to decrease to 2.89 trillion yuan (previous value: 3.01 trillion yuan), with a notable slowdown in the decline of excess savings in September [6] Light Industry Strategy Report - For Q4 2025, the report emphasizes three main lines: 1) The new consumption sector continues to thrive, with potential valuation shifts for growth stocks. 2) Quality manufacturing and traditional consumption stocks at the bottom of the cycle are expected to see upward opportunities, along with high dividend value. 3) The overseas market is showing gradual improvement after tariff stabilization [8] - The new consumption sector is expected to maintain strong growth, with significant differentiation among companies. The international tobacco giants are continuing to grow, and the pet industry is anticipated to remain highly competitive during the Double Eleven shopping festival [9] - Quality manufacturing is expected to benefit from price increases in metal cans and favorable conditions in the paper and plastic packaging sectors, with a positive outlook for profitability in Q4 [9]

Company Performance - The stock price of Meizhigao reached a historical high, increasing by 22.81% to 28.00 yuan, with a trading volume of 1.597 million shares and a transaction amount of 41.9683 million yuan, resulting in a turnover rate of 2.83% [2] - The latest total market capitalization of Meizhigao in A-shares is 2.511 billion yuan, with a circulating market capitalization of 1.578 billion yuan [2] - The company reported a revenue of 229 million yuan for the first half of the year, a year-on-year decrease of 3.76%, and a net profit of -1.8234 million yuan, a year-on-year decline of 115.42%, with basic earnings per share at -0.0200 yuan [2] Industry Overview - The light manufacturing industry, to which Meizhigao belongs, has an overall increase of 0.14%, with 48 stocks rising, including Meizhigao, Delixi Co., and Huayuan Holdings, which saw increases of 22.81%, 9.98%, and 5.86% respectively [2] - Conversely, 110 stocks in the industry experienced declines, with the largest drops from Haiou Zhugong, Yinglian Co., and Yuma Technology, which fell by 4.40%, 2.96%, and 2.96% respectively [2] Margin Trading Data - As of October 15, the latest margin trading balance for Meizhigao is 3.347 million yuan, with a financing balance of 3.347 million yuan, reflecting a decrease of 380,400 yuan over the past 10 days, representing a 10.20% decline [2]

Core Insights - The light industry in China has shown continuous growth during the 14th Five-Year Plan, with strengthened market advantages and significantly improved brand competitiveness [1] Group 1: Industry Growth - The number of large-scale light industry enterprises in China has increased from 108,700 in 2020 to 140,000, with an average annual growth rate of 6.4% [3] - The average annual growth rate of enterprise operating income in the light industry is 4.22% [3] - The total export volume of the entire industry has maintained the highest share of national exports for five consecutive years [3] Group 2: Structural Optimization - The proportion of smart home appliances in the light industry has risen from 38% to 62% during the 14th Five-Year Plan [5] - The number of "lighthouse factories" in the light industry has reached 28, and there are 1,321 national-level green factories [5] Group 3: Innovation Capability - Over the past five years, the light industry has established 25 national key laboratories, 44 national engineering research centers, and 214 national-level enterprise technology centers, creating a multi-level innovation platform system [7]

Core Viewpoint - The A-share market experienced a significant rebound on October 15, with the S&P A-Share Dividend Index leading the mainstream dividend indices, rising by 0.92% and accumulating a nearly 3% increase for the month as of October 15, 2025 [1] Group 1: Market Performance - The S&P A-Share Dividend ETF (562060) also performed strongly, surging by 1.2% to a new high, closing at 0.592 yuan, with frequent premiums during trading [1] - In the past five trading days, the S&P Dividend ETF attracted over 40 million yuan, becoming a favored tool for investment in a slow bull market [1] Group 2: Sector Performance - All top ten sectors of the S&P A-Share Dividend Index recorded gains on October 15, with the pharmaceutical and automotive sectors rising over 2%, while machinery, light manufacturing, and home appliance sectors also increased by over 1% [2] - The top ten sectors and their respective weightings and performance on October 15 are as follows: - Banking: 16.58%, +0.61% - Machinery: 11.02%, +1.88% - Light Manufacturing: 8.68%, +1.25% - Home Appliances: 7.20%, +1.44% - Basic Chemicals: 6.28%, +0.83% - Textiles and Apparel: 5.55%, +1.70% - Pharmaceuticals: 4.76%, +2.05% - Automotive: 3.96%, +2.32% - Power and Utilities: 3.94%, +0.45% - Construction: 3.87%, +1.12% [2] Group 3: Stock Performance - Nearly 80% of the constituent stocks recorded positive returns, with Mercury Home Textiles leading with a 9.41% increase, followed by Kesi Co. at 7.38%, and Hailong Cold Chain at 6.83% [2][4] - The top-performing stocks on October 15 include: - Mercury Home Textiles: +9.41% - Kesi Co.: +7.38% - Hailong Cold Chain: +6.83% - Shenhuo Co.: +5.90% - Jinbei Electric: +3.57% - Siwei Liekong: +3.42% - Tianshan Aluminum: +3.21% - Zhongchuang Zhiling: +3.19% - Gujia Home: +2.86% - Yutong Bus: +2.80% [4] Group 4: Investment Insights - According to CITIC Securities, the fourth quarter of 2025 may be a key time for bottom-fishing in dividend stocks to achieve excess returns, as pessimistic expectations may have been fully reflected [5] - The S&P A-Share Dividend Index has shown superior performance in both yield and dividend rate, with a one-year return of 24.56% and a latest dividend yield of 5.27% [5] - The index emphasizes dividend stability and sustainable profitability, with a strict 3% individual stock weight limit, leading to a more balanced market capitalization distribution [5]

Quantitative Models and Construction Methods 1. Model Name: Industry Relative Strength (RSI) Model - **Model Construction Idea**: This model identifies leading industries by calculating their relative strength (RS) based on historical price performance over different time windows [10] - **Model Construction Process**: 1. Use 29 first-level industry indices as the configuration targets [10] 2. Calculate the price change rates for the past 20, 40, and 60 trading days for each industry index [10] 3. Rank the industries based on their price change rates for each time window and normalize the rankings to obtain RS_20, RS_40, and RS_60 [10] 4. Calculate the average of the three rankings to derive the final RS value: $ RS = \frac{RS_{20} + RS_{40} + RS_{60}}{3} $ [10] 5. Industries with RS > 90% by the end of April are identified as potential leading industries for the year [10] - **Model Evaluation**: The model successfully identified key annual industry trends, such as high dividend, resource products, exports, and AI, which were validated by market performance throughout the year [10][12] 2. Model Name: Industry Sentiment-Trend-Crowding Framework - **Model Construction Idea**: This framework provides two industry rotation strategies based on market conditions: 1. High sentiment + strong trend, avoiding high crowding (aggressive strategy) 2. Strong trend + low crowding, avoiding low sentiment (conservative strategy) [6][14] - **Model Construction Process**: 1. Evaluate industries based on three dimensions: sentiment, trend, and crowding [6][14] 2. Use sentiment as the core metric for the aggressive strategy, with crowding as a risk control factor [14] 3. Use trend as the core metric for the conservative strategy, avoiding low-sentiment industries [14] 4. Allocate weights to industries based on their scores in the three dimensions [6][14] - **Model Evaluation**: The framework is effective in adapting to different market conditions and has shown strong performance in historical backtests [6][14] 3. Model Name: Left-Side Inventory Reversal Model - **Model Construction Idea**: This model identifies industries with potential for recovery by analyzing sectors in distress or those with low inventory pressure and high analyst optimism [24] - **Model Construction Process**: 1. Identify industries currently in distress or recovering from past distress [24] 2. Focus on sectors with low inventory pressure and potential for restocking [24] 3. Incorporate analyst long-term positive outlooks for these industries [24] - **Model Evaluation**: The model effectively captures recovery opportunities in industries undergoing inventory restocking cycles, providing significant absolute and relative returns [24] --- Model Backtesting Results 1. Industry Relative Strength (RSI) Model - **Annualized Return**: Not explicitly mentioned - **Excess Return**: Not explicitly mentioned - **Information Ratio (IR)**: Not explicitly mentioned - **Maximum Drawdown**: Not explicitly mentioned - **Monthly Win Rate**: Not explicitly mentioned - **Performance Highlights**: - Industries with RS > 90% by April 2024 included coal, utilities, home appliances, banking, petrochemicals, communication, non-ferrous metals, agriculture, and automotive [10] - These industries showed strong performance, with key themes being high dividends, resource products, exports, and AI [10][12] 2. Industry Sentiment-Trend-Crowding Framework - **Annualized Return**: 22.1% (long-only portfolio) [14] - **Excess Return**: 13.8% (annualized) [14] - **Information Ratio (IR)**: 1.51 [14] - **Maximum Drawdown**: -8.0% [14] - **Monthly Win Rate**: 68% [14] - **Performance Highlights**: - 2023 excess return: 7.3% [14] - 2024 excess return: 5.7% [14] - 2025 YTD excess return: 2.8% [14] 3. Left-Side Inventory Reversal Model - **Annualized Return**: Not explicitly mentioned - **Excess Return**: - 2023: 17.0% (relative to equal-weighted industry benchmark) [24] - 2024: 15.4% (relative to equal-weighted industry benchmark) [24] - 2025 YTD: 7.8% (relative to equal-weighted industry benchmark) [24] - **Information Ratio (IR)**: Not explicitly mentioned - **Maximum Drawdown**: Not explicitly mentioned - **Monthly Win Rate**: Not explicitly mentioned - **Performance Highlights**: - Absolute return: - 2023: 13.4% [24] - 2024: 26.5% [24] - 2025 YTD: 26.4% [24] --- Quantitative Factors and Construction Methods 1. Factor Name: Sentiment Factor - **Factor Construction Idea**: Measures the overall sentiment of an industry to identify high-growth opportunities [14] - **Factor Construction Process**: 1. Evaluate the sentiment of each industry based on relevant metrics (not explicitly detailed in the report) [14] 2. Rank industries by sentiment scores [14] - **Factor Evaluation**: Sentiment is a core metric in the aggressive strategy of the Industry Sentiment-Trend-Crowding Framework, providing strong signals for high-growth opportunities [14] 2. Factor Name: Trend Factor - **Factor Construction Idea**: Measures the strength of market trends to identify industries with strong momentum [14] - **Factor Construction Process**: 1. Evaluate the trend of each industry based on relevant metrics (not explicitly detailed in the report) [14] 2. Rank industries by trend scores [14] - **Factor Evaluation**: Trend is a core metric in the conservative strategy of the Industry Sentiment-Trend-Crowding Framework, offering a simple and replicable approach to industry allocation [14] 3. Factor Name: Crowding Factor - **Factor Construction Idea**: Measures the level of crowding in an industry to identify overbought or underbought sectors [14] - **Factor Construction Process**: 1. Evaluate the crowding level of each industry based on relevant metrics (not explicitly detailed in the report) [14] 2. Rank industries by crowding scores [14] - **Factor Evaluation**: Crowding is used as a risk control factor in both aggressive and conservative strategies of the Industry Sentiment-Trend-Crowding Framework [14] --- Factor Backtesting Results 1. Sentiment Factor - **Annualized Return**: Not explicitly mentioned - **Excess Return**: Not explicitly mentioned - **Information Ratio (IR)**: Not explicitly mentioned - **Maximum Drawdown**: Not explicitly mentioned - **Monthly Win Rate**: Not explicitly mentioned 2. Trend Factor - **Annualized Return**: Not explicitly mentioned - **Excess Return**: Not explicitly mentioned - **Information Ratio (IR)**: Not explicitly mentioned - **Maximum Drawdown**: Not explicitly mentioned - **Monthly Win Rate**: Not explicitly mentioned 3. Crowding Factor - **Annualized Return**: Not explicitly mentioned - **Excess Return**: Not explicitly mentioned - **Information Ratio (IR)**: Not explicitly mentioned - **Maximum Drawdown**: Not explicitly mentioned - **Monthly Win Rate**: Not explicitly mentioned