Core Viewpoint - The research on global asset allocation is essential for tracking, measuring, and judging cross-border capital flows, especially in the context of current geopolitical turbulence and frequent macroeconomic narrative shifts. High-frequency capital movements often precede fundamental data, reflecting market expectations and risk preferences. The approach involves both "addition" and "subtraction" to comprehensively cover global asset dynamics while filtering out noise to identify impactful marginal variables [2][4]. Global Capital Flow Tracking Framework - The capital flow tracking framework includes three main components: 1. A panoramic view of global capital flows across major asset classes, utilizing a dual observation model of long-term (monthly) and short-term (weekly) perspectives to provide strategic and tactical insights [4][12]. 2. Tracking capital flows by region, focusing on the dynamics between major economies like the US, Europe, Japan, and China, to assess cross-border capital preferences and risk sentiments [4][12]. 3. Analyzing the structural changes in China's stock market, distinguishing between active and passive funds, as well as domestic and foreign capital, to better understand the micro liquidity environment [4][12]. Global Capital Flow Overview - As of February 2026, the total assets under management of major global funds reached approximately $48.40 trillion, with stock funds at $27.92 trillion (57.7%), money market funds at $10.13 trillion (20.9%), and bond funds at $9.33 trillion (19.3%) [5][20]. - The global fund management scale has shown a long-term upward trend but exhibits significant cyclical volatility, characterized by "quantity and price rising together" during upcycles and "significant retraction" during downturns [5][20]. Historical Series Analysis - In February 2026, global stock funds recorded a net inflow of $128.43 billion, placing it in the 97.8th percentile historically, while bond funds saw a net inflow of $86.45 billion (97.0th percentile), and money market funds experienced a net inflow of $77.60 billion (75.6th percentile) [6][26]. - Recent weekly observations indicate a decline in net inflows for stock and bond funds, with stock funds at $13.22 billion (46.8th percentile) and bond funds at $3.54 billion (6.5th percentile) for the week ending March 5, 2026 [6][31]. Core Market Insights - In the US, stock and bond funds have maintained net inflows, but the scale has significantly decreased in recent months, with stock funds at $253.3 billion (69.2nd percentile) and bond funds at $529.5 billion (89.5th percentile) as of February 2026 [7][33]. - European stock funds have seen continuous net inflows for 14 months, with a net inflow of $324.1 billion (98.5th percentile) in February 2026, while bond funds also maintained inflows at $168.2 billion (97.0th percentile) [7][36]. - Japanese stock funds reached a net inflow of $161.2 billion (97.7th percentile) in February 2026, with bond funds transitioning to net inflows of $6.3 billion (85.0th percentile) [7][43]. China Market Deep Dive - In February 2026, China's stock funds shifted from a significant outflow to a small inflow of $1 billion, while bond funds continued to experience outflows, albeit at a reduced scale of $3.7 billion (25.6th percentile) [8][64]. - The structure of stock fund flows indicates a significant reduction in outflows from domestic and passive funds, with active funds showing a net inflow of $21.3 billion (93.2nd percentile) [8][69]. - Weekly tracking for March 12, 2026, revealed a net outflow of $6.42 billion from Chinese stock funds, with active and passive funds also experiencing outflows [8][73].

Core Viewpoint - The article highlights the transition of public funds from passive shareholders to active governance participants, as evidenced by Wan Jia Fund's disclosure of its voting results for the 2025 fiscal year, marking a significant step in the implementation of governance rules for public companies [1][6][8]. Group 1: Voting Participation and Results - Wan Jia Fund participated in 41 shareholder meetings in 2025, including 15 annual and 26 extraordinary meetings, covering over 552 voting proposals related to profit distribution, guarantee credit, and asset restructuring [3][5]. - Out of the 552 votes cast, Wan Jia Fund voted against 27 proposals, primarily concerning China Merchants Energy's low-price private placement plan, citing concerns over shareholder dilution and insufficient dividends [5][6]. Group 2: Regulatory Framework and Implementation - The disclosure of voting results is part of a broader initiative following the release of the "Rules for Public Fund Managers' Participation in Corporate Governance," which aims to establish a systematic approach for fund managers to engage in governance [7][9]. - The new regulations, effective from 2026, require public funds to disclose their voting results annually, enhancing transparency and encouraging funds to act as active shareholders [8][9]. Group 3: Institutional Environment and Trends - The evolving regulatory environment, including the reduction of shareholder proposal thresholds from 3% to 1%, has lowered the cost of participation for shareholders, facilitating greater involvement in corporate governance [9][10]. - Fund companies are increasingly adopting structured management systems to ensure responsible governance participation, with South Fund establishing a comprehensive process for managing investment responsibilities [9][10].

Group 1 - The article emphasizes the importance of dividend indices as a stock asset, highlighting their higher volatility compared to bond assets, and suggests investing in dividend funds when undervalued [3] - It discusses a cash flow fund combination, such as "monthly salary treasure," which allows for regular cash flow on a weekly or monthly basis, with a composition of 40% stocks and 60% bonds, resulting in lower volatility compared to dividend index funds [4] - The article outlines a balanced stock-bond strategy that automatically triggers rebalancing mechanisms to sell stocks when the market rises and to buy stocks when the market falls, thus achieving a "buy low, sell high" effect without requiring investor intervention [5][6] Group 2 - REITs (Real Estate Investment Trusts) are introduced as a significant asset class distinct from traditional real estate investments, focusing on commercial properties like shopping malls and office buildings, and they distribute about 90% of rental income as dividends to holders [7] - The article suggests identifying cash flow assets that are undervalued and have high cash flow yields for investment, indicating that high cash flow yields often coincide with undervalued asset phases [8] - It recommends using income to purchase assets, which leads to an accumulation of assets and increasing cash flow over time, and suggests utilizing asset cash flow to cover household expenses and reduce family debt [9][10]

Group 1 - The article discusses the increasing popularity of index funds among investors and questions whether this trend will lead to lower returns for these funds [2][8]. - The core principle of index funds is low cost, which is emphasized as a key reason for their growing market share [8][10]. - It is noted that all stocks are owned by shareholders, and the actual returns for investors are their investment returns minus costs, making index funds one of the lowest-cost participants in the market [9][10]. Group 2 - The article presents a hypothetical scenario where an investor, instead of using index funds, creates a portfolio of high-dividend stocks and maintains a patient, low-turnover strategy, which could also lead to superior returns [11][12]. - Despite the advantages of index funds, it is suggested that they will not completely dominate the market due to human behavior, as most investors struggle with patience and discipline [12][14]. - The historical performance of dividend and value index funds in the A-share market is mentioned, indicating that they have outperformed the market over the past 20 years, yet they still represent a small portion of the overall market [13].

Group 1 - The report highlights that the current phase may represent the peak of pressure due to the ongoing stalemate in the US-Iran conflict, which continues to suppress risk appetite and leads to a short-term decline in funds supporting the "first phase of the rally" [1][4][5] - It emphasizes that mid-term uncertainties are underestimated, including the likelihood of increased inflation tolerance by both the US and China, the resilience of the US economy, and the potential for China's energy and supply chain security to become a global alpha [1][4][12] - The report draws parallels between the current situation and past oil crises, indicating that rising oil prices and freight costs could lead to inflation and monetary tightening, confirming a stagflation cycle that may impact stock market fundamentals and valuations [5][11] Group 2 - The A-share market is currently in a "two-phase rally" adjustment phase, with expectations of a rebound following a period of overselling, but the market is likely to remain in a range-bound state with potential for sector rotation [1][12][13] - Short-term investment recommendations focus on "reality-based" structures, particularly in CPO and energy storage sectors, which are expected to benefit from energy diversification and supply resilience trends [1][13][16] - The report suggests that the characteristics of the two-phase rally are consistent with historical patterns, indicating that the adjustment phase is not about switching styles but rather about the diffusion of leading sectors [1][14][16]

1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints of the Report - This week, the external market environment fluctuated sharply. REITs first rose and then fell, similar to the bond market trend. The warehousing sector declined significantly due to short - term negative news. The primary market welcomed the first new product issuance in 2026, and the Dongfanghong Tunnel Expressway REIT released an inquiry announcement. Tianhong Consumer REIT withdrew its application, and Xinghe Commercial Real Estate REIT was accepted. Some high - speed REITs disclosed February operating data, with most showing significant growth in traffic volume [3]. - As of March 20, 2026, 20 REITs have been successfully issued since 2025. This week, 8 first - issue public REITs and 1 expansion - offering REIT made new progress. The current approval process includes 32 first - issue and 4 expansion - offering REITs at different stages [3]. - This week, the CSI REITs Total Return Index closed at 1021.78 points, down 0.13%, outperforming the CSI 300 by 2.05 percentage points and the CSI Dividend by 2.92 percentage points. Property - type REITs fell 0.33%, while franchise - type REITs rose 0.41%. In terms of asset types, the affordable housing, transportation, data center, and environmental protection and water services sectors performed well [3]. - In terms of liquidity, the average daily turnover rates of property - type and franchise - type REITs decreased, and the trading volumes also declined week - on - week. The data center sector was the most active [3]. - In terms of valuation, the yields of property - type and franchise - type REITs from ChinaBond valuation are 4.02% and 4.87% respectively, with the transportation, warehousing and logistics, and park sectors ranking among the top [3]. 3. Summary According to the Directory 3.1 Primary Market: 8 First - Issue Public REITs Made New Progress - Since 2025, 20 REITs have been successfully issued, with a total issuance scale of 40.3 billion yuan. This week, 8 first - issue public REITs made new progress, including the withdrawal of Zhonghang Tianhong Consumer REIT, feedback on several REITs, and the acceptance and registration of others. One expansion - offering REIT, CICC Xiamen Anju REIT, was registered and became effective [3][15][16]. 3.2 Secondary Market: Liquidity Decreased This Week 3.2.1 Market Review: The CSI REITs Total Return Index Fell 0.13% - The CSI REITs Total Return Index closed at 1021.78 points, down 0.13%, outperforming the CSI 300 by 2.05 percentage points and the CSI Dividend by 2.92 percentage points. Property - type REITs fell 0.33%, and franchise - type REITs rose 0.41%. In terms of asset types, the affordable housing (+0.98%), transportation (+0.67%), data center (+0.10%), and environmental protection and water services (-0.05%) sectors performed well [3]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type and franchise - type REITs were 0.31% and 0.28% respectively, down 5.05 and 7.36 basis points from last week. The trading volumes were 333 million and 94 million shares respectively, down 14.15% and 20.81% week - on - week. The data center sector was the most active [3][27]. 3.2.3 Valuation: The Affordable Housing Sector Had a Higher Valuation - The yields of property - type and franchise - type REITs from ChinaBond valuation were 4.02% and 4.87% respectively. The transportation (5.97%), warehousing and logistics (5.72%), and park (4.84%) sectors ranked among the top [3][29]. 3.3 This Week's News and Important Announcements - **News**: During the Two Sessions, a representative proposed to include REITs in the inter - connectivity to activate the Hong Kong REITs market. Guangdong Hongchuan Smart Logistics plans to issue a REIT with its infrastructure assets. Jinan Urban Development Group's rental housing REIT service procurement project is open for bidding. Shaanxi's Huashan Scenic Area REIT is about to be issued [35]. - **Announcements**: Several high - speed REITs disclosed February operating data, including traffic volume and toll revenue. Some REITs also issued解禁 announcements [36].

Core Viewpoint - The article highlights the increasing trend of actively managed investment firms entering the ETF market, indicating a shift towards differentiated development in the ETF landscape, with a total market size of 5.1 trillion yuan as of March 20 [1][8]. Group 1: New ETF Launches - Xingsheng Global Fund has submitted its second ETF product, the Xingsheng National Value 100 ETF, just over two months after launching its first ETF [2][3]. - The National Value 100 Index is constructed by excluding securities with low trading volume and market capitalization, negative net profits, and low ROE, focusing on the top 100 securities based on PE ratio and dividend yield [3]. - The first ETF from Xingsheng, the Xingsheng Hu-Shen 300 Quality ETF, has a current scale of 306 million yuan as of March 20 [3]. Group 2: Market Entry by Other Firms - Dongfanghong Asset Management has also entered the ETF space with the submission of the Dongfanghong CSI Dongfanghong Dividend Low Volatility ETF, focusing on the Smart Beta strategy [5][6]. - This strategy combines high dividend and low volatility attributes, appealing to investors seeking stable returns during market fluctuations [6]. Group 3: Competitive Landscape and Differentiation - The ETF market is becoming increasingly competitive, with a total of 1,456 ETFs and a market size of 5.1 trillion yuan as of March 20, leading to a consensus that "whoever controls ETFs controls the market" [8]. - The challenge for new entrants is to achieve differentiation in a landscape where index products are becoming more homogeneous, necessitating a focus on niche segments [8]. - Industry experts suggest that the key to success lies in identifying promising sub-sectors within established markets to create unique product offerings [8]. Group 4: Future Trends and Innovations - There is significant potential for innovation in ETF product forms and strategies, with suggestions for incorporating options for downside protection and transparent active ETFs [9]. - The diversification trend in product offerings is expected to strengthen, with institutions expanding into index investment and asset allocation services [9]. - Morgan Asset Management predicts that by 2030, the global active ETF market could grow from approximately 1 trillion USD at the end of 2024 to 6 trillion USD, significantly outpacing passive ETFs [10].

Core Viewpoint - The article discusses the formal transition of public funds from passive shareholders to active governance participants, as evidenced by the disclosure of voting results for the 2025 shareholder meetings by Wan Jia Fund, marking a significant step in the governance of public companies in China [1][6]. Group 1: Voting Participation and Results - Wan Jia Fund participated in 41 shareholder meetings in 2025, including 15 annual and 26 extraordinary meetings, covering over 552 voting items related to profit distribution, guarantees, capital increases, and asset restructuring [3][5]. - Out of 552 votes, Wan Jia Fund cast 27 dissenting votes, primarily against China Merchants Energy's capital increase plan, citing concerns over shareholder dilution and insufficient dividends [5][6]. - The fund's voting participation reflects a growing trend among public funds to engage actively in corporate governance, with other funds like Southern Fund also preparing to disclose their voting results [2][5]. Group 2: Regulatory Framework and Governance Actions - The disclosure of voting results is part of the implementation of the "Rules for Public Fund Managers' Participation in Corporate Governance," which aims to enhance the role of public funds as active shareholders [6][7]. - The new regulations, effective from 2026, require public funds to disclose their voting activities annually, promoting transparency and accountability in corporate governance [6][8]. - The revised Company Law, effective July 2024, lowers the threshold for shareholder proposals from 3% to 1%, significantly reducing the cost of participation in governance [8]. Group 3: ESG and Responsible Investment - The article highlights the growing importance of ESG (Environmental, Social, and Governance) investments, with public funds beginning to establish dedicated ESG roles and frameworks to enhance their governance participation [10]. - Despite the increasing focus on ESG, the number of newly established funds explicitly categorized as ESG or environmental protection-themed remains low, indicating potential growth opportunities in this sector [10].

Macro Dynamics - The Central Cyberspace Administration of China is guiding platforms to standardize short video content labeling to prevent misinformation and maintain social order [2] Financial Institutions - Changxin Fund has appointed Xiao Jian as the new chairman, succeeding Liu Yuanrui, who will continue as a board member. This change is part of a normal personnel adjustment and reflects a strategic focus on asset management [6] - Gansu Rural Commercial Bank has officially opened, marking the first provincial-level rural commercial bank established this year, with a registered capital of 44.9 billion yuan. This development is seen as a significant breakthrough in rural credit cooperative reform [7] Market Data - U.S. stock markets experienced a collective decline, with the Dow Jones down 0.96%, the Nasdaq down 2.01%, and the S&P 500 down 1.51%. This marks the longest consecutive weekly decline since February 2023 [8] - Gold prices have dropped significantly, with spot gold falling 3.42% to $4,491.67 per ounce, marking a cumulative decline of approximately 10.49% this week [12] Company Dynamics - Several airlines, including United Airlines, are reducing scheduled flights by 5% in response to rising fuel costs due to geopolitical tensions in the Middle East [11] - WeChat has introduced new features in its desktop version, including voice input, bulk message recall, and video playback speed options, aimed at enhancing user efficiency [10]

Core Viewpoint - The article highlights the increasing trend of actively managed funds entering the ETF market, indicating a shift towards differentiated development in the ETF landscape, with a total market size of 5.1 trillion yuan as of March 20, 2023 [1][4]. Group 1: New ETF Launches - Xingsheng Global Fund has submitted its second ETF product, the Xingsheng National Value 100 ETF, just over two months after launching its first ETF [2]. - The National Value 100 Index is constructed by excluding securities with low trading volume and market capitalization, negative net profits, and low ROE metrics, focusing on the top 100 securities based on PE ratio and dividend yield [2]. - The top ten weighted stocks in this index include Gree Electric Appliances, Midea Group, and China Merchants Bank [2]. Group 2: Market Entry by Other Firms - Dongfanghong Asset Management has also entered the ETF space by submitting the Dongfanghong CSI Dongfanghong Dividend Low Volatility ETF, focusing on a niche segment of "dividend low volatility" [3]. - This strategy combines high dividend yields with low volatility, appealing to investors seeking stable returns during market fluctuations [3]. Group 3: Competitive Landscape and Differentiation - The ETF market is becoming increasingly competitive as more actively managed institutions enter, necessitating differentiation strategies to stand out [4]. - The consensus is forming that "whoever controls ETFs controls the market," making ETFs a crucial driver for public fund growth [4]. - The article emphasizes the need for "latecomer" public funds to address the challenge of achieving differentiation in a market with growing product homogeneity [4]. Group 4: Future Trends and Innovations - Industry experts suggest that the core strategy for developing unique indices is to identify promising niche areas within a mature market [5]. - There is significant potential for product innovation in the ETF space, including strategies like options for downside protection and transparent active ETFs [5]. - The Chinese ETF market is expected to expand into new areas, enhancing the diversity of risk-return profiles available to investors [5]. Group 5: Global Projections - Morgan Asset Management predicts that the global active ETF market could grow from approximately $1 trillion at the end of 2024 to $6 trillion by 2030, significantly outpacing passive ETFs [6]. - The analysis indicates that active ETFs can fill gaps in the fixed income sector, particularly in China's bond market, which is the second largest globally but has low ETF penetration [6].