Core Viewpoint - The A-share market experienced a strong rebound in Q3, with major indices showing significant gains, indicating a recovery in market confidence and accelerated capital inflow [1][2]. Fund Positioning - As of the end of Q3, the average equity positions of stock and mixed funds were 90.14% and 82.15%, respectively, reflecting an increase from Q2 [2][4]. - Notable funds such as Penghua Innovation Growth and Dongfanghong Domestic Demand Growth significantly increased their equity positions by 13.06 and 15.28 percentage points, respectively [2][3]. Top Holdings - Ningde Times became the top holding for public funds, surpassing Tencent Holdings, with new AI-related stocks like Xinyi and Zhongji Xuchuang entering the top ranks [4][6]. - The top 50 holdings are primarily in the information technology, consumer goods, and pharmaceutical sectors, with 19 stocks in the information technology sector alone [4][5]. AI Sector Focus - Fund managers expressed a strong focus on the AI sector, with many maintaining high equity positions and increasing allocations to AI-related companies [7][8]. - The AI industry is seen as a key area for growth, with significant investment opportunities anticipated in the coming quarters [9]. Market Outlook - Fund managers are optimistic about the growth potential in the technology sector, particularly in AI, energy storage, and new energy vehicles, viewing the current market as a pivotal point for the next industrial revolution [9][10].

Group 1 - The core focus of the market will be on sectors related to information technology and telecommunications, healthcare and pharmaceuticals, as well as retail, consumer goods, and services [1][3] Group 2 - The Hong Kong IPO market has significantly rebounded in the first half of the year, raising HKD 107.1 billion, a sevenfold increase compared to the same period last year, surpassing the total fundraising amount for the entire year of 2024 [2] - In the first half of the year, 44 new stocks were listed in Hong Kong, with 42 on the main board, primarily in retail, consumer goods, and services, which accounted for 34% of the listings [2] - PwC anticipates that the positive market sentiment will continue into the second half of the year, with over 200 companies having submitted applications to list in Hong Kong, covering traditional industries as well as new economy sectors like biotechnology, healthcare, and artificial intelligence [2][3] Group 3 - By the end of December 2024, there are 3 specialized technology companies under Chapter 18C and 67 biotechnology companies under Chapter 18A on the Hong Kong Stock Exchange [3] - Following the launch of the "Special Line for Science and Technology Enterprises" in May 2025, the number of biotechnology companies listed is expected to increase to 73 by June 2025 [3] - PwC predicts that 90 to 100 companies will be listed in Hong Kong in 2025, with fundraising expected to exceed HKD 200 billion, focusing on information technology and telecommunications, healthcare and pharmaceuticals, and retail, consumer goods, and services sectors [3]