Market Performance - The Sci-Tech 50 Index increased by 1.72% and the ChiNext Index rose by 2.74% over the last five trading days, while the large-cap value index fell by 1.21% and the large-cap growth index increased by 0.86% [1] - The static PE of the CSI All Share Index minus the yield of 10-year government bonds indicates a risk premium of 2.82% as of December 12, 2025, with a two-standard deviation boundary at 4.71% [1] Valuation Levels - As of December 12, 2025, the CSI All Share Index's PETTM percentile is at 79%, with the Shanghai Stock Exchange 50 and CSI 300 at 73% and 71% respectively, while the ChiNext Index is close to 55% [1] ETF and Fund Flows - In the last five trading days, ETF inflows amounted to 18.6 billion yuan, and the margin trading balance increased by approximately 23.5 billion yuan, with an average daily trading volume of 193.37 billion yuan across the two markets [2] Thematic Indexes - The latest thematic allocations include communication, artificial intelligence, and momentum growth in the ChiNext, specifically focusing on the CSI Communication Equipment Theme Index, ChiNext Artificial Intelligence Index, CSI 5G Communication Theme Index, and ChiNext Momentum Growth Index [2][3] Neural Network Analysis - A convolutional neural network (CNN) is utilized to model price and volume data, mapping learned features to industry thematic sectors, indicating a focus on AI and communication sectors [11]

Core Viewpoint - The China Securities 5G Communication Theme Index has shown significant growth, reflecting the overall performance of listed companies related to 5G construction and applications [1][2] Group 1: Index Performance - The China Securities 5G Communication Theme Index rose by 3.17% to 1183.97 points, with a trading volume of 97.544 billion yuan [1] - Over the past month, the index has increased by 16.83%, by 38.04% over the last three months, and by 18.11% year-to-date [1] Group 2: Index Composition - The index includes companies involved in 5G infrastructure, terminal devices, and application scenarios, with a base date of December 31, 2015, set at 1000.0 points [1] - The top ten weighted companies in the index are: - Xinye Technology (9.61%) - Zhongji Xuchuang (9.35%) - Luxshare Precision (9.2%) - Industrial Fulian (6.21%) - ZTE Corporation (5.66%) - Zhaoyi Innovation (4.0%) - Hushan Electronics (3.72%) - Dongshan Precision (3.69%) - GoerTek (2.89%) - Huagong Technology (2.59%) [1] Group 3: Market Distribution - The Shenzhen Stock Exchange accounts for 76.20% of the index holdings, while the Shanghai Stock Exchange accounts for 23.80% [1] Group 4: Industry Breakdown - The industry composition of the index holdings is as follows: - Information Technology: 53.19% - Communication Services: 42.60% - Industry: 2.73% - Consumer Discretionary: 1.49% [2] Group 5: Index Adjustment and Fund Tracking - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Public funds tracking the 5G communication theme include: - Huaxia CSI 5G Communication Theme ETF Connect A - Huaxia CSI 5G Communication Theme ETF Connect C - Yinhua CSI 5G Communication Theme ETF Connect A - Yinhua CSI 5G Communication Theme ETF Connect C - Yinhua CSI 5G Communication Theme ETF - Huaxia CSI 5G Communication Theme ETF [2]

Core Viewpoint - The China Securities 5G Communication Theme Index has shown significant growth, reflecting the performance of companies involved in 5G construction and applications [2] Group 1: Index Performance - The China Securities 5G Communication Theme Index increased by 0.15% to 1032.14 points, with a trading volume of 69.059 billion yuan [1] - Over the past month, the index has risen by 12.92%, 34.48% over the last three months, and 6.07% year-to-date [2] Group 2: Index Composition - The index includes companies related to 5G infrastructure, terminal devices, and application scenarios, with a base date of December 31, 2015, set at 1000.0 points [2] - The top ten weighted companies in the index are: Luxshare Precision (9.91%), Newyea (7.73%), Zhongji Xuchuang (7.42%), ZTE Corporation (6.09%), Hon Hai Precision (6.07%), Zhaoyi Innovation (4.56%), Huitian Technology (3.7%), Dongshan Precision (3.42%), GoerTek (3.17%), and AVIC Optoelectronics (2.88%) [2] - The index's holdings are primarily listed on the Shenzhen Stock Exchange (75.16%) and the Shanghai Stock Exchange (24.84%) [2] Group 3: Sector Allocation - The sector allocation of the index holdings includes: Information Technology (54.67%), Communication Services (40.56%), Industry (3.14%), and Consumer Discretionary (1.63%) [2] Group 4: Index Adjustment and Fund Tracking - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December [3] - Public funds tracking the 5G communication index include: Huaxia CSI 5G Communication Theme ETF Link A, Huaxia CSI 5G Communication Theme ETF Link C, Yinhua CSI 5G Communication Theme ETF Link A, Yinhua CSI 5G Communication Theme ETF Link C, Yinhua CSI 5G Communication Theme ETF, and Huaxia CSI 5G Communication Theme ETF [3]

Core Viewpoint - The China Securities 5G Communication Theme Index has shown a decline in performance over the past three months and year-to-date, despite a slight increase in the past month [2]. Group 1: Index Performance - The China Securities 5G Communication Theme Index decreased by 1.75% to 849.03 points, with a trading volume of 30.387 billion yuan [1]. - Over the past month, the index has increased by 2.63%, but it has decreased by 19.80% over the past three months and 11.06% year-to-date [2]. Group 2: Index Composition - The index includes companies related to 5G construction and applications, reflecting the overall performance of listed companies in the 5G communication theme [2]. - The top ten weighted companies in the index are: Luxshare Precision (8.42%), ZTE Corporation (7.19%), Zhongji Xuchuang (5.82%), Xinyi Technology (5.72%), Zhaoyi Innovation (5.4%), Industrial Fulian (5.28%), Unisplendour (3.95%), GoerTek (3.67%), AVIC Optoelectronics (3.55%), and Sanan Optoelectronics (3.18%) [2]. Group 3: Market and Sector Breakdown - The index's holdings are primarily listed on the Shenzhen Stock Exchange (73.70%) and the Shanghai Stock Exchange (26.30%) [2]. - In terms of industry composition, Information Technology accounts for 54.49%, Communication Services for 39.59%, Industry for 3.86%, and Consumer Discretionary for 2.07% [2]. Group 4: Index Adjustment and Fund Tracking - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December [3]. - Public funds tracking the 5G communication theme include: Huaxia CSI 5G Communication Theme ETF Connect A, Huaxia CSI 5G Communication Theme ETF Connect C, Yinhua CSI 5G Communication Theme ETF Connect A, Yinhua CSI 5G Communication Theme ETF Connect C, Yinhua CSI 5G Communication Theme ETF, and Huaxia CSI 5G Communication Theme ETF [3].