Core Viewpoint - The A-share market has shown a strong upward trend since July, with the Shanghai Composite Index surpassing 3600 points for the fourth time since 2007, 2015, and 2021, indicating a robust market recovery and investor sentiment improvement [1] Group 1: Market Performance - Since September 2024, A-shares and Hong Kong stocks have experienced a multi-sector rotation upward, with sectors like dividends, artificial intelligence, banking, and innovative pharmaceuticals showing active performance [1] - As of August 6, 2023, 80 actively managed equity funds have seen gains exceeding 60% this year, primarily from leading fund managers such as E Fund, Huitianfu, and GF Fund [2] - The AI and innovative pharmaceutical sectors have shown strong growth, with the CSI Artificial Intelligence Theme Index and the CSI Innovative Pharmaceutical Industry Index rising over 60% and 40% respectively in the past year [2] Group 2: Fund Performance - There are 43 equity funds that have doubled in value over the past year, with E Fund leading with four "doubling funds" [2][3] - As of August 6, 2023, 90 actively managed equity funds have achieved an annualized return of over 15% over the past three years, with E Fund having the highest number of such funds at seven [4][5] - The overall annualized return of the Wind All A Index is 3.19%, while the representative Wind Mixed Equity Fund Index has a return of -1.99% over the same period [6] Group 3: Sector Insights - The innovative pharmaceutical sector has seen a strong rebound after four years of stagnation, with several stocks doubling or tripling in value this year [7] - Fund managers believe the current market conditions for the innovative pharmaceutical sector are sustainable, with a focus on globally competitive pharma and biotech companies [7] - The technology sector, particularly cloud computing, is viewed as having long-term potential, although some fund managers anticipate adjustments due to prior gains [8]

Core Viewpoint - The A-share market has shown a significant recovery since July, with the Shanghai Composite Index surpassing 3600 points for the fourth time since 2007, 2015, and 2021, leading to a notable rebound in active equity fund performance [1] Group 1: Market Performance - The Shanghai Composite Index has reached new highs, with over 90% of active equity funds achieving positive returns this year, averaging nearly 14% [1] - As of August 6, 43 active equity funds have seen gains exceeding 100% over the past year, with 37 fund managers having 80 funds rising over 60% [1] - The market has experienced a rotation in sectors, with strong performances in dividends, artificial intelligence, banking, and innovative pharmaceuticals [1] Group 2: Sector Analysis - The AI and innovative pharmaceutical sectors have shown strong growth, with the CSI Artificial Intelligence Theme Index and CSI Innovative Pharmaceutical Industry Index rising over 60% and 40% respectively in the past year [2] - A significant portion of the active equity funds that performed well this year have focused on the medical and technology sectors, with over half of the funds that gained over 60% being healthcare-related [2] - Fund managers express confidence in the sustainability of the innovative pharmaceutical sector's growth, citing historical development opportunities and strong industry trends [2][3] Group 3: Fund Performance - There are 43 "doubling funds" in the past year, with 9 being two-year fixed open products from the Beijing Stock Exchange, which has seen a significant rise, with the BSE 50 Index increasing over 110% [4] - Despite the recovery in fund performance, rebuilding trust in active equity funds will take time due to previous volatility and losses [5] - As of August 6, 90 active equity funds have achieved an annualized return of over 15% over the past three years, with a notable concentration of successful funds from leading managers like E Fund and Huatai [5]

Core Viewpoint - The active equity fund managed by CITIC Construction Investment's North Exchange has achieved the highest performance in the first half of the year, with a return of 82.45% as of June 30 [1] Fund Performance Summary - The top-performing fund is the CITIC Construction Investment North Exchange Selected Two-Year Open Fund, led by Leng Wenpeng, with a return of 82.45% [1] - Other notable funds include: - Huaxia North Exchange Innovation Small and Medium Enterprises Selected Two-Year Open Fund with a return of 72.16% [1] - Wanji North Exchange Intelligent Selection Two-Year Open Fund with a return of 60.36% [1] - The second-ranked fund, Changcheng Pharmaceutical Industry Selected Fund, achieved a return of 75.18% [1] - More than half of the top ten funds have significant investments in the pharmaceutical sector, including: - Bank of China Hong Kong Stock Connect Pharmaceutical Fund with a return of 70.08% [1] - Yongying Pharmaceutical Innovation Intelligent Selection Fund with a return of 69.39% [1] - Huashan Pharmaceutical Biotechnology Fund with a return of 66.44% [1] - Ping An Core Advantage Fund with a return of 63.76% [1] - Nuon Selected Value Fund with a return of 61.88% [1] - The growth-oriented fund managed by Wu Yuanyi, Guangfa Growth Navigation One-Year Holding, ranked sixth with a return of 68.29% [1]

Group 1 - The Beijing Stock Exchange (BSE) has become a focal point in the capital market in 2025, driven by policy support and influx of funds, with the BSE 50 Index reaching a historical high of 1500.31 points on May 21 [1] - As of May 21, the average annual return of 36 BSE funds reached 38.05%, with 31 funds achieving historical net asset value highs, led by Huaxia BSE Innovation Small and Medium Enterprises Fund with an 80.79% annual return [3] - The strong performance of BSE funds is attributed to multiple favorable factors, including optimized institutional design, lower listing thresholds for companies, and solid financial performance, with 165 out of 265 listed companies reporting revenue growth in Q1 2025 [3] Group 2 - Despite the overall strong performance of BSE thematic funds, some products have underperformed their benchmarks, such as the Guotai BSE 50 Index Fund, which exceeded 20% annual return but lagged behind its benchmark by 12 percentage points [4] - BSE thematic funds are primarily divided into actively managed products and passive index funds, with tracking errors often amplified due to factors like construction pace and component stock adjustments [4] - Some actively managed funds have shown significant strategy deviations, with certain funds exceeding benchmark returns by over 40%, while others have underperformed [4]

Group 1: Core Insights - The public fund market in Q1 2025 performed well, driven by AI and robotics, with robotics-themed funds, North Exchange funds, and Hong Kong stock funds leading the performance rankings [1][5] - The top-performing fund, Penghua Carbon Neutrality Theme A, achieved a return of 60.26%, making it the champion of Q1 performance [1][2] - Active equity funds showed a significant recovery, outperforming passive products due to their flexible market strategies and early positioning in high-performing stocks [1][5] Group 2: Robotics-Themed Funds - Robotics-themed funds stood out in Q1 2025, with Penghua Carbon Neutrality Theme A heavily invested in stocks like Beite Technology and Hechuan Technology, achieving a 60.26% return [2] - Notable stocks contributing to the fund's success included Shuanglin Co., which saw a year-to-date increase of 118.16% [2] - Fund managers expressed optimism about the robotics sector, highlighting investment opportunities in areas such as electronic skin and laser radar [2] Group 3: North Exchange Funds - North Exchange funds also performed well, with returns of 38.98%, 37.45%, and 34.26% for specific funds, driven by investments in stocks like Kelaite, which increased by 136.01% [3] - The North Exchange market is viewed as having reasonable valuations, with potential for growth due to the continuous inclusion of innovative companies [3] Group 4: Hong Kong Stock Funds - Hong Kong stock funds experienced a resurgence, with returns of 38.9%, 32.25%, and 31.4%, primarily driven by strong performances in the internet technology and pharmaceutical sectors [4] - Key stocks included Hansoh Pharmaceutical and Kelong Biotechnology, which saw significant price increases of 78.08% and 64.58%, respectively [4] - Fund managers anticipate continued growth in the pharmaceutical sector due to improved R&D efficiency and increasing transaction shares from overseas pharmaceutical companies [4] Group 5: Active Equity Funds - Active equity funds demonstrated strong performance, with an average net value growth rate of 3.47%, significantly outperforming mainstream indices [5] - Ordinary stock funds and mixed equity funds reported average net value growth rates of 4.57% and 4.53%, respectively, showcasing the strong capabilities of public funds in equity investment [5] - The overall market in Q1 2025 exhibited structural characteristics, with robotics-themed funds leading the way and active equity funds marking a recognition of fund managers' stock-picking abilities [5]