Market Strategy - The recent market rebound aligns with previous predictions of a "layout window emerging," but the market has not shown a simultaneous increase in volume and price, indicating that the rebound does not change the overall oscillating pattern [6] - The current tension in Sino-Japanese relations is a major factor restraining risk appetite, suggesting a cautious approach to technology growth sectors, which are more sensitive to risk preferences [6] - The real estate market has been in a downward trend since the policy release last September, with recent price increases in the sector driven by changes in policy expectations and capital inflows, but further confirmation of policy effectiveness is needed to sustain this momentum [6] Sector Strategy - In the technology sector, a cautious approach is recommended due to the difficulty in further upward adjustments in expectations amid declining risk appetite [6] - The cyclical consumer manufacturing sector, characterized by medium risk, is expected to gain market consensus as conditions evolve [6] - The real estate sector requires significant fiscal policy measures, such as mortgage interest subsidies, to boost market confidence and reverse negative expectations [6] Defense Industry - Recent U.S. arms sales to Japan, totaling approximately $82 million, may accelerate China's equipment development in response to increasing uncertainties in the Asia-Pacific region [6] - The geopolitical climate, influenced by Japan's military expansion and U.S. support, is likely to drive growth in China's defense capabilities [6]

Core Viewpoint - The military industry is experiencing a significant surge, driven by recent advancements and developments in China's military capabilities, including the commissioning of new naval vessels and the introduction of advanced combat systems [3][6][7]. Group 1: Market Performance - Military stocks have seen substantial gains, with several companies reaching their daily limit up or increasing by over 10%, including Jianglong Shipbuilding, Yaguang Technology, and Tianhai Defense [4][5]. - As of the latest reports, the defense and military state-owned enterprises have shown a revenue growth of 21.19% year-on-year and a net profit increase of 8.93% for the first three quarters of 2025, indicating strong financial performance [4][6]. Group 2: Industry Dynamics - The Chinese military industry is transitioning from a reliance on domestic demand to a new development model characterized by three driving forces: domestic demand foundation, foreign trade expansion, and civil-military integration [6][8]. - The industry is shifting from "cyclical growth" to "comprehensive growth," reflecting a more sustainable and diversified growth momentum [6]. Group 3: Investment Focus - Investment strategies in the military sector are focusing on four high-certainty directions: 1. Main battle equipment supply chain from a military trade perspective, targeting core enterprises with assembly capabilities and overseas delivery experience [8]. 2. Advanced combat fields such as underwater offense and defense, unmanned clusters, and electromagnetic countermeasures, with related companies moving towards large-scale deployment [8]. 3. Technology-driven sectors under civil-military integration, including commercial aerospace and high-energy lasers, which combine defense support with emerging industry attributes [8]. 4. Reform and asset securitization, involving local state-owned enterprises acquiring quality military assets and accelerating the securitization of unlisted military assets [8].

Core Viewpoint - The article discusses the launch of the "Institutional Express" ETF investment tool by Ping An Securities and Tianhong Fund, aimed at helping ordinary investors navigate the fast-changing A-share market and capitalize on investment opportunities driven by institutional investors [1][4]. Group 1: Product Overview - "Institutional Express" is designed to track institutional fund flows and preferences, identifying potential industries of interest for investors [4]. - The tool utilizes a strategy model developed by Tianhong Fund, focusing on four key institutional factors: sell-side analyst expectations, buy-side institutional research, ETF fund flows, and large orders of index constituent stocks [4]. - The model processes data through normalization to create a unified scoring system, generating "strong indices" and "rotation signals" for investment decisions [4]. Group 2: Performance Metrics - The backtesting results from October 17, 2024, to October 23, 2025, show that "Institutional Express" achieved a return of 47.40%, significantly outperforming the CSI 300 index, which returned 16.39% during the same period [8]. - The maximum drawdown for "Institutional Express" was 19.42%, compared to 13.42% for the CSI 300 index, indicating a higher risk profile [8]. Group 3: User Accessibility - The tool is designed to be user-friendly, allowing investors to easily access top industry signals and corresponding ETF products through the Ping An Securities APP [11]. - Since the launch of the ETF section in 2022, the platform has served over ten million users, continuously updating its features based on market sentiment and user feedback [11].

Report Overview - The report is a weekly strategy report on sector rotation ETFs from November 3, 2025, to November 9, 2025 [2] Core Views - The strategy is based on two research reports and constructs a strategy portfolio of sector and thematic ETFs [2] - For the week of November 10, 2025, the model recommends allocating to sectors such as communication equipment, software development, and consumer electronics [2] - The strategy will add holdings of Cloud Computing ETF, Battery ETF, Industrial Non - Ferrous Metals ETF, etc., and continue to hold Communication ETF, VR ETF, etc. Some ETFs and target index trading timing signals gave daily or weekly risk warnings as of last weekend [2] Performance Tracking - From November 3 to November 7, 2025, the cumulative net return of the strategy was approximately - 0.76%, and the excess return relative to the CSI 300 ETF was approximately - 1.58% [2] - Since October 14, 2024, the cumulative out - of - sample return of the strategy was about 25.60%, and the cumulative excess return relative to the CSI 300 ETF was about 2.13% [2] Recommended Portfolio for the Next Week (20251110 - 20251114) | Fund Code | ETF Name | ETF Market Cap (Billion Yuan) | Holding Status | Coincident Shenwan Sector and Weight | Weekly Timing Signal | Daily Timing Signal | | --- | --- | --- | --- | --- | --- | --- | | 515880 | Communication ETF | 117.77 | Continue to hold | Communication Equipment (75.3%) | 1 | 0 | | 516510 | Cloud Computing ETF | 19.86 | Add | Software Development (30.54%) | 0 | 0 | | 159786 | VR ETF | 2.10 | Continue to hold | Consumer Electronics (28.46%) | 1 | - 1 | | 159755 | Battery ETF | 165.64 | Add | Battery (62.54%) | 1 | 1 | | 560860 | Industrial Non - Ferrous Metals ETF | 56.84 | Add | Industrial Metals (57.65%) | 1 | 1 | | 512220 | TMT ETF | 5.48 | Continue to hold | Semiconductor (37.25%) | 1 | 0 | | 512660 | Military Industry ETF | 142.21 | Add | Aviation Equipment (35.02%) | 0 | - 1 | | 159870 | Chemical Industry ETF | 172.55 | Add | Chemical Products (25.73%) | 1 | 1 | | 159667 | Industrial Mother Machine ETF | 6.04 | Add | Automation Equipment (47.2%) | 1 | - 1 | | 588830 | Science and Innovation New Energy ETF | 10.06 | Add | Photovoltaic Equipment (46.08%) | 1 | 1 | [2] Holdings and Performance in the Past Week (20251103 - 20251107) | Fund Code | ETF Name | ETF Market Cap (Billion Yuan) | Recent 1 - week Return (%) | Holding Status | | --- | --- | --- | --- | --- | | 515880 | Communication ETF | 117.77 | 0.40 | Continue to hold | | 159768 | Real Estate ETF | 5.88 | - 0.66 | Remove | | 159869 | Game ETF | 113.12 | - 0.49 | Remove | | 562050 | Pharmaceutical ETF | 1.06 | - 3.04 | Remove | | 512800 | Bank ETF | 205.57 | 2.71 | Remove | | 159766 | Tourism ETF | 35.92 | 2.32 | Remove | | 512220 | TMT ETF | 5.48 | - 0.47 | Continue to hold | | 159786 | VR ETF | 2.10 | - 2.04 | Continue to hold | | 516560 | Pension ETF | 1.33 | - 1.25 | Remove | | 588700 | Science and Innovation Pharmaceutical ETF (Harvest) | 3.16 | - 5.10 | Remove | | | ETF Portfolio Average Return | | - 0.76 | | | 510300 | CSI 300 ETF | 4277.20 | 0.82 | | | | ETF Portfolio Excess Return | | - 1.58 | | [11]

Core Viewpoint - Military stocks are experiencing a significant rise, with the military ETF (512660) increasing by over 1.5%. The ETF has seen a net inflow of over 360 million yuan in the last 10 trading days, bringing its total size to over 15 billion yuan, making it the largest in its category [1]. Group 1: Market Performance - The military ETF (512660) has attracted substantial investment, with a net inflow of over 360 million yuan in the past 10 trading days [1]. - The current scale of the military ETF exceeds 15 billion yuan, positioning it as the leader among similar funds [1]. Group 2: Industry Outlook - The growth in military expenditure is expected to continue, with positive procurement expectations for the "14th Five-Year Plan" and potential order increases anticipated to start in late Q4 [1]. - The focus on the 100th anniversary of the military in 2027 is expected to accelerate the delivery of new main battle equipment and elevate the demand for new combat capabilities, indicating sustained high industry prosperity [1]. Group 3: Structural Changes - There is an expectation for reforms that could enhance the asset securitization rate and industry chain collaboration within military groups, leading to improved asset injection expectations and significantly enhanced management capabilities [1]. Group 4: Global Market Position - The military trade sector is anticipated to enter a "Deepseek" moment, with a rapid increase in global market share, which will drive both the quantity and price of equipment demand [1]. - The expansion of civilian capabilities into strategic emerging fields such as low-altitude economy, commercial aerospace, and deep-sea technology is also expected [1]. Group 5: ETF Characteristics - The military ETF (512660) tracks the CSI Military Index, which comprehensively covers opportunities across various sectors including land, sea, air, and space [1]. - The index has demonstrated strong defensive qualities, showing the smallest decline during weak market conditions in 2018, 2022, and 2023, with particularly notable performance in 2023 [1]. - In 2024, the CSI Military Index is projected to rank first in terms of returns among similar indices, and it has shown significant gains during bull markets in 2019 and 2020, closely following military leaders and the CSI National Defense Index [1].

Core Viewpoint - The military industry ETF (512660) experienced a net sell-off in financing on October 22, 2025, indicating a potential shift in investor sentiment towards the sector [1]. Financing Summary - On October 22, 2025, the financing buy-in amounted to 31.82 million yuan, while financing repayments totaled 38.89 million yuan, resulting in a net sell-off of 7.07 million yuan and a financing balance of 303 million yuan [1]. - The financing balance decreased by 2.2% from the previous day, reflecting a downward trend in market sentiment [4]. Margin Trading Summary - On the same day, the margin trading saw a sell-off of 416,700 shares, with repayments of 303,900 shares, leading to a net sell-off of 112,800 shares and a remaining margin balance of 10.88 million shares [2]. - Over the past three trading days, there has been a cumulative net sell-off of 4.2 million shares, with 11 out of the last 20 trading days showing net sell-offs in margin trading [2]. Overall Margin Balance - The total margin balance stood at 316 million yuan on October 22, 2025, down by 7.09 million yuan from the previous day [4].

Group 1 - The military industry ETF (512660.SH) experienced a decline of 1.17% on October 22, 2025 [1] - The net outflow of main funds (transactions over 1 million yuan) amounted to 28.2194 million yuan, ranking first among comparable funds [1] - The latest trading volume for the fund was 311 million shares, with a trading amount falling below 370 million yuan, marking a three-month low in trading volume [1]

Core Viewpoint - The article discusses various ETFs that are positioned to benefit from specific economic trends and government policies, highlighting their potential for investment returns. Group 1: Saudi ETF (159329.SZ) - Saudi Arabia's "Vision 2030" aims to diversify its economy away from oil dependency, targeting a non-oil GDP export share increase from 16% to at least 50% [3] - The ETF's holdings reflect this diversification, with over 40% in the financial sector and more than 20% in consumer and technology sectors, while traditional fossil fuels account for only about 10% [3] - A proposed amendment by the Saudi Capital Market Authority could allow foreign ownership in listed companies to exceed 50%, potentially attracting more foreign investment [4] Group 2: Bank ETF (512800.SH) - A policy initiative encourages large state-owned insurance companies to increase their investments in A-shares, which may lead to a sustained inflow of long-term capital [6] - The ETF tracks the CSI 800 Bank Index, which had a dividend yield of 4.40% as of September 30, 2025, significantly higher than the market average and the yield on ten-year government bonds [7] Group 3: Military Industry ETF (515660.SH) - China's defense budget for 2025 is set at 1.81 trillion yuan, a 7.2% increase, but still below 1.3% of GDP, compared to 3.5% for the U.S. and 6.3% for Russia [10] - The ETF tracks the CSI Defense Index, focusing on core areas such as aviation equipment, missiles, and new materials, which are expected to benefit from improvements in the defense sector's fundamentals [10]

Group 1 - The military industry ETF (512660.SH) experienced a decline of 1.28% on October 14, 2025, with a trading volume of 1.072 billion yuan [1] - The ETF saw a short selling of 4.033 million yuan and a repayment of 378,400 yuan, resulting in a net short selling of 3.6546 million yuan, ranking first among comparable funds [1] - Over the past two days, leveraged funds have accelerated their selling, totaling 4.7412 million yuan, also ranking first among comparable funds [1]

Group 1 - The "Second Golden Kylin Best Investment Advisor Selection" event is currently ongoing, with over 3,000 professional investment advisors participating in simulated trading competitions [1] - The event aims to provide a platform for investment advisors to showcase their capabilities, expand services, and enhance skills, thereby promoting the healthy development of China's wealth management industry [1] Group 2 - The top ten ETFs by buy frequency as of September 29 include the Hong Kong Securities ETF, Hong Kong Bank LOF, and multiple battery ETFs [2] - The top ten ETFs by buy amount include the Hong Kong Securities ETF, battery ETFs, and a robotics ETF, indicating strong investor interest in these sectors [3] - The data for the top buy stocks/ETFs is based on the aggregated buy counts and amounts from all participating advisors, reflecting current market trends [4]