Report Overview - Report date: October 27, 2025 [5] - Analyst: Ma Yaoshi [5] - Qualification certificate: S1330524050001 [5] - Contact email: mayst@hxzb.cn [5] - Contact phone: 15201282186 [5] Market Overview - A-share market: The Shanghai Composite Index rose 0.71% to 3,950.31 points, the Shenzhen Component Index rose 2.02% to 13,289.18 points, and the ChiNext Index rose 3.57% to 3,171.57 points. The total trading volume of A-shares in the two markets was 1.9918 trillion yuan [2][6] - Leading gainers: Communications (4.73%), electronics (4.72%), and national defense and military industry (2.34%) [2][6] - Leading losers: Petroleum and petrochemicals (-1.36%), coal (-1.29%), and food and beverages (-1.18%) [2][6] Stock ETF - Top trading volume: The top three were the Harvest Shanghai - Science and Technology Innovation Board Chip ETF (up 5.40% with a discount rate of 5.47%), the ChinaAMC Shanghai - Science and Technology Innovation Board 50 ETF (up 4.21% with a discount rate of 4.31%), and the ChinaAMC CSI A500 ETF (up 1.38% with a discount rate of 1.49%) [3][7] Bond ETF - Top trading volume: The top three were the Haitong Fortune CSI Short - Term Financing Bond ETF (up 0.01% with a discount rate of 0.01%), the Bosera CSI Convertible and Exchangeable Bond ETF (up 0.43% with a discount rate of 0.54%), and the ChinaAMC Shanghai Benchmark Market - Making Treasury Bond ETF (down 0.02% with a discount rate of - 0.02%) [4][9] Gold ETF - Gold prices: AU9999 fell 0.60%, and Shanghai Gold fell 0.49% [12] - Top trading volume: The top three were the Huaan Gold ETF (down 0.49% with a discount rate of - 0.60%), the E Fund Gold ETF (down 0.50% with a discount rate of - 0.58%), and the Bosera Gold ETF (down 0.51% with a discount rate of - 0.63%) [12][13] Commodity Futures ETF - Performance: The Dacheng Non - Ferrous Metals Futures ETF rose 1.22% with a discount rate of 1.67%, the CCB Yisheng Zhengzhou Commodity Exchange Energy and Chemical Futures ETF fell 0.40% with a discount rate of - 0.03%, and the ChinaAMC Feed Soybean Meal Futures ETF fell 0.26% with a discount rate of 4.36% [13][14] Cross - Border ETF - Overseas indices: The Dow Jones Industrial Average rose 0.31%, the Nasdaq Composite rose 0.89%, the S&P 500 rose 0.58%, and the German DAX rose 0.23% the previous day. The Hang Seng Index rose 0.74%, and the Hang Seng China Enterprises Index rose 0.68% today [15] - Top trading volume: The top three were the E Fund CSI Hong Kong Securities Investment Theme ETF (up 1.28% with a discount rate of 1.65%), the Huatai - Peregrine CSI Korea Exchange Sino - Korean Semiconductor ETF (up 4.36% with a discount rate of 4.36%), and the Huatai - Peregrine Hang Seng Technology ETF (up 1.01% with a discount rate of 2.05%) [15][16] Money ETF - Top trading volume: The top three were the Yin Hua Day - to - Day Profit ETF, the Hua Bao Add - Benefit ETF, and the CCB Add - Benefit Money ETF [17][19]

Group 1 - The event on October 22, 2025, marked the release of the "Shaanxi Fund Yearbook (2025)" and a conference on the high-quality development of government investment funds, attended by over 200 representatives from government departments, industry institutions, and academia [1] - The conference was organized by the Shaanxi Securities Investment Fund Association and received guidance from various governmental bodies, including the Shaanxi Provincial Financial Committee and the China Securities Regulatory Commission Shaanxi Bureau [1] Group 2 - A keynote report by Wang Shuang, Secretary-General of the China International Technology Promotion Association's Fund of Funds Branch, discussed the new framework for high-quality development of government investment funds, based on the recently released "Guiding Opinions on Promoting the High-Quality Development of Government Investment Funds" [3] - The 2025 State Council document fills regulatory gaps in top-level design and provides a solid foundation for the standardization and professional operation of government investment funds, with measures such as relaxed contribution ratios and return investment requirements, removal of registration restrictions, optimized exit mechanisms, and the establishment of error tolerance mechanisms [3]

Report Industry Investment Rating - The operation rating for CITIC Five Styles - Finance is ★☆☆, indicating a bullish bias but with limited operability in the market [3][4]. Core Viewpoints - As of the week ending October 24, 2025, the weekly returns of Tonglian All A (Shanghai, Shenzhen, Beijing), ChinaBond Composite Bond, and Nanhua Commodity Index were 3.42%, -0.03%, and 0.94% respectively. In the public - fund market, enhanced index strategies led the gains with a weekly return of 3.89%. Neutral strategies had more gains than losses. Among commodities, precious - metal ETFs pulled back, while soybean - meal and non - ferrous - metal ETFs had a slight rebound, and energy - chemical ETFs stabilized [4]. - All CITIC five styles closed up last Friday, with the growth style leading in returns. The style rotation chart showed that the cyclical and consumer styles weakened compared to the previous period, and the growth style had a significant increase in the indicator momentum. In the public - fund pool, financial and cyclical style funds had better excess performance in the past week. The deviation of products from the consumer style increased marginally, and the overall market congestion indicator continued to rise this week, with the growth and financial styles in a historically high - congestion range [4]. - In the neutral strategy, the stock - index basis showed a marginal recovery trend during the week. The IC contract recovered to around 0.5 times the standard deviation above the three - month average. The average premium rates of the spot - index ETFs corresponding to IC and IM were relatively high, in the top 80% quantile range of the past three months [4]. - Among Barra factors, the medium - and long - term momentum factor had a better return performance this week, with a weekly excess return of 1.70%. The residual volatility and ALPHA factors retreated, and the winning rates of the dividend and leverage factors improved. The cross - section rotation speed of factors continued to increase this week, currently in the top 80% quantile range of the past year [4]. - According to the latest scoring results of the style timing model, the growth and financial styles recovered marginally this week, while the cyclical and stable styles declined. The current signal favors the financial style. The return of the style timing strategy last week was 1.45%, and the excess return compared to the benchmark balanced allocation was - 0.98% [4]. Summary by Related Catalogs Fund Market Review Recent Market Returns - The weekly, monthly, quarterly, and semi - annual returns of Tonglian All A (Shanghai, Shenzhen, Beijing), ChinaBond Composite Bond (net), and Nanhua Commodity are presented in a chart [6]. - The maximum drawdowns of the main public - fund strategy indices in the past three months and their weekly returns are also shown in charts [6]. CITIC Style Index - The net - value trends of CITIC style indices (finance, cycle, consumption, growth, stability) from September 24 to October 23, 2025, are presented in a chart [8][9]. - The relative rotation chart of CITIC style indices shows the relative strength and relative - strength momentum of different styles in different time periods (recent week, last week, recent month, recent three months, recent six months, recent year) [10][11]. - The excess - return performance of fund style indices in different time periods is provided in a table [12]. - The fund - style congestion chart shows the congestion levels of cycle, growth, consumption, and finance styles from September 28 to October 26, 2025 [13]. Barra Factors - The style preference of Barra single factors is within the range of 0 - 1, with a higher value indicating a stronger preference. The excess - return performance of Barra single - factor style strategies and the net - value trends of Barra single - factor style excess since this year are presented in charts [14][16][18].

Core Viewpoint - The article discusses the recent "mouse warehouse" incident involving a fund manager at Hai Fu Tong, highlighting compliance issues and the need for regulatory oversight in the public fund industry [1][5]. Group 1: Incident Overview - Fund manager Yang Ningjia was fined 500,000 yuan for using non-public information to facilitate trading activities for another individual, Chen Chongdong, during his tenure [1][3]. - Yang's performance as a fund manager was poor, with three funds under his management showing significant negative returns, including -19.69% and -37.79% [3]. Group 2: Regulatory Environment - The article emphasizes that in the current big data era, regulatory bodies monitor fund transactions and manager behaviors closely, making it increasingly difficult to engage in unethical practices without detection [4]. - The incident serves as a warning for Hai Fu Tong, which is undergoing significant restructuring and must address compliance shortcomings [5]. Group 3: Company Background and Restructuring - Hai Fu Tong, established in 2003, is a Sino-foreign joint venture with a registered capital of 300 million yuan, and is currently undergoing a merger with Guotai Junan Securities [5][6]. - The management structure of Hai Fu Tong is changing, with recent leadership shifts indicating a potential merger with Huashan Fund, as both companies are now under the control of Guotai Junan [6]. Group 4: Fund Management Performance - As of the second quarter of this year, Hai Fu Tong managed 243.39 billion yuan in public funds, while Huashan Fund managed over 740 billion yuan, indicating a significant disparity in asset management scale [6]. - Despite the lower management scale, Hai Fu Tong holds valuable licenses for managing enterprise annuities and social security funds, which are attractive to industry peers [6][8]. Group 5: Future Implications - The merger of Hai Fu Tong and Huashan Fund is likely to retain the "Hai Fu Tong" brand due to regulatory requirements, suggesting a strategic direction for the combined entity [7]. - However, Hai Fu Tong's performance in managing enterprise annuities has been subpar, ranking last among peers in terms of returns, which could impact its reputation post-merger [8].

Core Viewpoint - The recent rebound in A-shares has led to a withdrawal of funds from the bond market, resulting in an increase in bond yields, while pure bond funds have underperformed compared to bond funds with rights [1][2]. Group 1: Market Performance - A-shares experienced a strong performance in the latter half of last week, supported by favorable news, which caused a shift in funds away from the bond market, leading to an increase in bond yields [2]. - The yield on the 10-year government bond rose from 1.82% to 1.85%, while the yield on the 5-year AAA corporate bond decreased slightly from 2.1% to 2.08% [2]. - The average performance of medium to long-term pure bond funds was only 0.02%, a decline from the previous week, while short-term bond funds averaged 0.04% [2]. Group 2: Fund Performance - Some bond funds with rights achieved significant weekly returns, with the Jin Ying Yuan Feng A fund recording a return of 6.01% and 16 secondary bond funds exceeding 2% in returns [2][6]. - The performance of pure bond funds was disappointing, with many yielding less than those with rights, highlighting a divergence in fund performance [2]. Group 3: Market Outlook - The market is currently experiencing a "stock-bond seesaw" effect, with expectations of policy changes influencing bond market dynamics, particularly regarding the anticipated "double reduction" policy [1][4]. - Analysts express caution regarding the bond market, suggesting that the potential for further interest rate cuts is limited, and the necessity for aggressive monetary policy is reduced due to existing fiscal tools [4]. - The overall economic environment is expected to remain under pressure in the fourth quarter, with a likelihood of continued adjustments in the bond market [3][4].

Core Insights - The Chairman of the China Securities Regulatory Commission, Wu Qing, emphasized the importance of long-term funds as a "ballast" and "stabilizer" in the financial market [1] - The focus is on advancing public fund reforms and ensuring the implementation of long-term assessments for corporate annuities and insurance funds [1] - There is a push to enrich products and risk management tools that are suitable for long-term investments, aiming to improve the market ecosystem for "long money and long investment" [1]

Core Viewpoint - Huatai Fuhua Fund, once known for its "stable investment" approach, is currently facing significant challenges as its bond funds have underperformed, leading to a loss of investor confidence [3][9]. Group 1: Fund Performance - Huatai Fuhua's bond fund, Huatai Fuhua Pure Bond A, has experienced a drawdown of over 7% in the last three months and a loss of 5.4% in the last six months, ranking it among the bottom in the market [5][10]. - The fund's performance has shattered the perception that "pure bond funds equal stability," placing Huatai Fuhua under scrutiny as a leading fixed-income fund company [9][10]. - The overall bond market has seen a shift in investment logic, leading to a "double kill" scenario for both stocks and bonds, with Huatai Fuhua's fund being particularly affected [12][17]. Group 2: Market Conditions - A fundamental shift in macro policy expectations has occurred, with strong stimulus signals leading to increased inflation expectations and potential upward pressure on interest rates, negatively impacting the bond market [13][16]. - The "see-saw" effect between stocks and bonds has become evident, with capital flowing from the bond market to the equity market due to lower deposit rates and a strong stock market performance [16][17]. Group 3: Management Issues - The significant losses in Huatai Fuhua Pure Bond A are attributed not only to market conditions but also to internal management decisions, including a sudden change in fund management during a turbulent market period [19][20]. - The previous fund manager, He Min, had a solid track record, while the new manager, Peng Weinan, lacks sufficient experience in managing long-term pure bond funds, leading to a mismatch in capability and asset complexity [23][25]. - The departure of experienced managers has created a talent gap within the firm, exacerbating the challenges faced by the fixed-income team [30][31]. Group 4: Governance and Trust Issues - The issues faced by Huatai Fuhua are indicative of deeper governance flaws and a crisis of trust within the company, as evidenced by a significant drop in the scale of new fund issuances from 200 billion in 2020 to 25.9 billion in 2024 [26][27]. - The internal pressure on research and investment talent has led to a situation where fund managers are overextended, making it difficult to conduct thorough due diligence on each bond [28][30]. - The lack of effective risk control and communication with investors has further intensified the trust crisis, as the fund's significant drawdown went unaddressed by the internal risk management system [32].

Core Viewpoint - The market sentiment has improved due to news regarding Sino-U.S. trade negotiations, leading to a rebound in the A-share market and a decline in gold prices [1] Group 1: Market Performance - The three major indices in the A-share market rose by over 1% [1] - COMEX gold futures prices fell below $4100 per ounce [1] - The performance of gold-related ETFs was mixed, with Huaxia Gold ETF (518850) down 0.47%, Gold Stock ETF (159562) up 2.03%, and Nonferrous Metals ETF (516650) up 2.58% [1] Group 2: Gold Price Trends - Spot gold prices have been fluctuating around the $4090 per ounce range, having retreated approximately 6% to 7% from the historical high in mid-October [1] - The current environment is characterized by geopolitical tensions easing, ongoing trade negotiations, profit-taking from safe-haven assets, and a strengthening U.S. dollar, all contributing to the gold price pullback [1] Group 3: Future Outlook on Gold - According to Shenwan Hongyuan analysis, the driving factors for gold prices are weakening, indicating a potential for high-level fluctuations and adjustments in the short term [1] - However, in the broader context, the ongoing deterioration of the U.S. fiscal deficit and debt situation, increasing global confrontations, and rising distrust in the current financial system are leading central banks to continue accumulating gold [1] - There is a growing recognition among investors of gold as a safe-haven asset and a store of value, reinforcing the narrative that gold is becoming the ultimate safe asset [1]

Group 1 - The market is entering a new and more vibrant phase, with the Shanghai Composite Index approaching 4000 points, indicating a potential for a sustained upward trend, contingent on solid economic fundamentals and improved corporate earnings [2] - Huabao Fund has launched three major broad-based ETFs tracking the CSI A50, A100, and A500 indices, providing investors with diverse options to invest in China's market [2] - The A50 ETF focuses on the top 50 leading companies, while the A100 ETF encompasses the top 100 industry leaders, and the A500 ETF targets the top 500 companies in the A-share market [2] Group 2 - The total trading volume in the two markets reached 2.34 trillion yuan, an increase of 365.9 billion yuan from the previous day, indicating heightened market activity [1] - The number of stocks that rose and fell in the market was 3361, with 217 stocks increasing and 1862 stocks decreasing, reflecting a mixed market sentiment [1] - The top three industries with net capital inflow were electronics, non-ferrous metals, and another unspecified sector, with inflows of 58.69 billion yuan, 139.46 billion yuan, and 62.80 billion yuan respectively [2]

ETF Market Overview - As of October 24, the performance of ETF products varied, with the Shanghai 50 index showing the highest increase among major broad-based ETFs, while the dividend-themed ETFs had the largest gains among industry and thematic products [2][9] - In the past two weeks, major broad-based ETFs such as the CSI A50, CSI 2000, and Shanghai 50 saw net inflows, while the CSI A500 ETF experienced the largest net outflow [2][9] - The recent trend indicates a shift in fund flows, with the New Energy ETF moving from net inflow to net outflow, while the Pharmaceutical ETF transitioned from net outflow to net inflow [16] ETF Fund Flow Analysis - The cumulative fund flow for major broad-based ETFs has shown a trend of outflows turning into inflows and then back to outflows since the beginning of 2025, with significant inflows into the CSI 300 ETF in April, followed by continued outflows in subsequent months [10][12] - Recent data indicates that, apart from the Shanghai 50 ETF, which shifted from net outflow to net inflow, other major broad-based ETFs have transitioned from net inflows to net outflows in the past two weeks [10][12] Thematic ETF Tracking - For technology-themed ETFs, those tracking the Hang Seng Technology index saw significant net inflows, while products tracking the CS Artificial Intelligence index experienced net outflows [32] - Dividend-themed ETFs tracking the low-volatility dividend index had the highest net inflows, whereas those tracking the dividend index saw net outflows [35] New ETF Products and Market Growth - In the past two weeks, a total of 8 new ETFs were launched, with a combined issuance of 2.997 billion shares, all of which were stock ETFs [26] - Compared to the end of 2024, the scale of various ETFs has increased significantly, with bond ETFs, commodity ETFs, industry + dividend ETFs, QDII ETFs, and broad-based ETFs growing by 293.33%, 197.82%, 112.34%, 52.18%, and 13.97% respectively [26] Fund Management Scale Distribution - As of October 24, Huaxia Fund has the largest ETF scale at 912.812 billion, with E Fund's ETF management scale expanding by over 250 billion compared to the previous year [27][28]