Core Insights - The report emphasizes the construction of a strategy portfolio based on industry and thematic ETFs, leveraging quantitative analysis of industry style continuation and switching perspectives [2]. - The strategy update indicates adjustments in holdings, with specific ETFs being added or maintained based on their performance and market signals [3][12]. ETF Holdings and Performance - The report lists various ETFs along with their market values and sector weights, highlighting significant holdings such as the Shipbuilding ETF with 41.57% in marine equipment and the Wine ETF with 84.12% in liquor [3]. - The strategy's cumulative net return from March 23 to March 27, 2026, was approximately -1.33%, with an excess return of about 0.15% compared to the CSI 300 ETF [3][11]. - Since October 14, 2024, the strategy has achieved a cumulative return of approximately 27.53%, outperforming the CSI 300 ETF by about 8.23% [3]. Recommended Sectors and Products - For the upcoming week, the report recommends focusing on sectors such as marine equipment, liquor, and securities, with specific ETFs like the Shipbuilding ETF and Securities Insurance ETF being highlighted for addition to the portfolio [12]. - The report also notes that some ETFs and indices have provided daily or weekly risk signals, indicating potential market volatility [12].

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core Viewpoints of the Report - The Financial Street Securities Research Institute constructs a strategy portfolio based on industry and thematic ETFs, and the model recommends allocating sectors such as marine equipment, liquor, and securities in the week of March 30, 2026 [2][12] - The strategy will newly hold products like the Ship ETF Fuguo, Securities and Insurance ETF E Fund, and Aerospace ETF Huatai-PineBridge, and continue to hold products like the Liquor ETF Penghua and Building Materials ETF Guotai in the next week [12] - As of last weekend, the trading timing signals of some ETFs and underlying indexes gave daily or weekly risk warnings [12] Group 3: Summary by Relevant Catalogs Strategy Portfolio Construction - The Financial Street Securities Research Institute constructs a strategy portfolio based on industry and thematic ETFs, referring to the strategy reports "Strategy Portfolio Report under Industry Rotation: Quantitative Analysis from the Perspective of Industry Style Continuity and Switching" (20241007) and "Research on the Overview and Allocation Methods of the Stock ETF Market: Taking the ETF Portfolio Based on the Industry Rotation Strategy as an Example" (20241013) [2] ETF Portfolio Information - The ETF portfolio includes multiple products such as the Ship ETF Fuguo, Liquor ETF Penghua, and Securities and Insurance ETF E Fund, with details on their market values, holding situations, heavy - held Shenwan industries and their weights, as well as weekly and daily timing signals [3] Performance Tracking - From March 23 to March 27, 2026, the cumulative net return of the strategy was approximately - 1.33%, and the excess return relative to the CSI 300 ETF was approximately 0.15% [3] - From October 14, 2024, to March 27, 2026, the out - of - sample cumulative return of the strategy was approximately 27.53%, and the cumulative excess return relative to the CSI 300 ETF was approximately 8.23% [3] ETF Portfolio Changes - In the week of March 23 - 29, 2026, some ETFs such as the Film and Television ETF Yin Hua, Telecommunications ETF E Fund were调出, while the Liquor ETF Penghua and Building Materials ETF Guotai were continued to be held. The average return of the ETF portfolio was - 1.33%, and the excess return relative to the CSI 300 ETF was 0.15% [11]

Core Viewpoint - The article highlights the trading activities in the Shanghai and Shenzhen stock markets, focusing on the top traded stocks and sectors, as well as the performance of ETFs and significant capital flows in various sectors [1][3][6]. Group 1: Stock Market Trading - The total trading volume of the Shanghai and Shenzhen Stock Connect reached 246.27 billion, with Zijin Mining and CATL leading in trading volume for the Shanghai and Shenzhen markets respectively [1]. - The top ten stocks traded on the Shanghai Stock Connect included Zijin Mining (19.26 billion), China Aluminum (16.76 billion), and Zhaoyi Innovation (16.23 billion) [4]. - The top ten stocks traded on the Shenzhen Stock Connect included CATL (32.20 billion), Xinyi Technology (25.48 billion), and Zhongji Xuchuang (20.45 billion) [5]. Group 2: Sector Performance - The communication sector saw the highest net inflow of capital, amounting to 30.80 billion, with a net inflow rate of 2.63% [7]. - Other sectors with significant net inflows included agriculture and defense, while sectors like electric power and photovoltaic experienced notable outflows [6][8]. Group 3: ETF Trading - The top traded ETF was the Gold ETF from Huaan, with a trading volume of 10.05 billion, reflecting a 42.05% increase from the previous trading day [13]. - The ETF with the highest increase in trading volume compared to the previous day was the S&P Biotechnology ETF from Jiashi, which saw a 196.37% increase [14]. - The chemical ETF (159870) experienced a significant reduction in shares, decreasing by 8.965 billion shares last week, contributing to a total reduction of over 80 billion shares in the past five weeks [16]. Group 4: Institutional and Retail Activity - Institutional activity was noted with significant purchases in stocks like Shenjian Co. and Guanglian Aviation, with purchases of 1.35 billion and 1.28 billion respectively [17][18]. - Retail investors showed high activity, particularly in Pingtan Development, which saw substantial buying from multiple retail funds [19].

Market Pricing Status - The market trading activity has slightly decreased, with the profitability effect diminishing. The average daily trading volume for the entire A-share market has dropped to 22.11 trillion yuan, and the proportion of stocks rising has decreased to 10.6% [8][9] - The trading concentration in primary industries has decreased, while it has increased in secondary industries. The turnover rate for the petroleum and petrochemical industry is above 99% [8][16] A-Share Liquidity Tracking - Financing funds, foreign capital, and ETF funds have all seen slight outflows. The new issuance scale of equity funds has decreased to 24.54 billion yuan [8][27] - Foreign capital has flowed out of the A-share market by 5.32 million USD, with the northbound capital transaction proportion rising to 39.5% [8][44] A-Share Industry Allocation Tracking - Financing funds and ETF funds have both flowed out of the non-ferrous metals sector. The electronic and power equipment sectors have seen significant outflows of foreign capital [8][19] - The banking and non-bank financial sectors have experienced net inflows, while non-ferrous metals and basic chemicals have seen net outflows in ETF funds [8][19] Hong Kong and Global Liquidity Tracking - There has been a significant outflow of southbound funds, with global foreign capital marginally flowing into the US and Japanese markets. The Nasdaq index has decreased by 2.1% [8][22] - The net outflow of southbound funds has risen to 6.329 billion yuan, marking a significant level since 2022 [8][22]

Core Viewpoint - The article highlights the trading activities in the Shanghai and Shenzhen stock markets, focusing on the top traded stocks, sector performances, and ETF transactions, indicating potential investment opportunities and trends in the market [1][2][3][4]. Trading Activities - The total trading volume of the Shanghai and Shenzhen Stock Connect today reached 352.34 billion, with Zijin Mining and CATL leading in trading volume for the Shanghai and Shenzhen markets respectively [1]. - The top ten stocks traded on the Shanghai Stock Connect included Zijin Mining (3.76 billion), China Ping An (1.77 billion), and Longi Green Energy (1.41 billion) [3]. - For the Shenzhen Stock Connect, CATL topped the list with 6.70 billion, followed by New Yisheng (5.06 billion) and Zhongji Xuchuang (4.74 billion) [4]. Sector Performance - The automotive sector saw the highest net inflow of main funds at 1.24 billion, followed by coal mining with 0.89 billion [6]. - The electronic sector experienced the largest net outflow of main funds at -28.67 billion, indicating a significant withdrawal of investment [7][8]. ETF Transactions - The top traded ETF was the Gold ETF from Huaan, with a transaction amount of 18.23 billion, followed by the Energy Chemical ETF from Jianxin at 8.57 billion [13]. - The Gold ETF saw a week-on-week increase of 53.49%, while the Energy Chemical ETF increased by 87.48% [13]. - The Chemical ETF experienced a significant reduction in shares, with a decrease of 4.86 billion last week and over 7 billion in the past four weeks [16]. Market Activity - The article notes that the trading activity of institutional investors has decreased, with significant purchases in stocks like Meili Cloud and Tuojin New Energy [17]. - Retail investors showed moderate activity, particularly in the space photovoltaic concept, with Tuojin New Energy seeing a strong surge and significant purchases from retail investors [18]. - Quantitative funds also showed reduced activity, with notable purchases in Tuojin New Energy [19].

Core Viewpoint - The article discusses the varying performance of chemical ETFs in 2023, highlighting that despite all being labeled as "chemical," their returns differ significantly due to underlying factors such as the indices they track and market conditions [4][6]. Group 1: ETF Performance - The best-performing chemical ETF has nearly achieved a 35% return this year, while others have returned less than 5% [4]. - The leading ETF, the Energy Chemical ETF by Jianxin (159981.SZ), has shown a significant increase in performance, attributed to its tracking of a commodity futures index rather than a traditional stock index [7][11]. - The majority of chemical ETFs are equity-based, tracking the performance of chemical companies, which can be influenced by broader market sentiments [14][13]. Group 2: Index Tracking Differences - Jianxin's ETF tracks the Yisheng Energy Chemical A index, which is linked to commodity prices like thermal coal and PTA, making it more sensitive to commodity market fluctuations [11][13]. - Other mainstream chemical ETFs follow a segmented chemical index, which includes top-performing companies in the chemical sector, such as Wanhua Chemical and Salt Lake Potash [15][17]. - The largest ETF by assets is the Penghua Chemical ETF (159870.SZ), with a combined scale exceeding 28 billion [19]. Group 3: Full Return Index vs. Price Index - The Guotai Chemical ETF (516220.SH) tracks a "full return" index, which includes dividends in its calculations, potentially leading to higher long-term returns compared to standard price indices [24][25]. - The full return index captures the benefits of reinvested dividends, which can enhance returns over time, especially in a cyclical industry like chemicals [25]. Group 4: Investment Strategies - For traders focused on short-term trends in commodities like PTA and methanol, the Energy Chemical ETF by Jianxin is more suitable due to its futures-based nature [26]. - For long-term investors interested in core chemical assets and industry leaders, ETFs tracking stocks of leading companies in the chemical sector may be more appropriate [26].

Core Viewpoint - The article discusses the significant impact of overseas uncertainties on the A-share technology sector, highlighting the correlation between institutional fund redemption trends and geopolitical risks [1][9]. Group 1: Market Reactions and Fund Flows - The fixed income + funds, which are sensitive to market fluctuations, experienced substantial net redemptions, marking the second-largest single-day sell-off since the onset of the current conflict [1]. - In January, fixed income + funds saw record inflows, driven by a bullish equity market, leading to increased participation from both retail and institutional investors [1]. - As market uncertainties arise, risk-averse funds, particularly those with lower stability in liabilities, are the first to withdraw, leading to a chain reaction of selling pressure on public funds [2][3]. Group 2: Performance of Convertible Bonds and ETFs - The convertible bond market has shown extreme volatility, with the high-priced convertible bond index experiencing a maximum drawdown of 15.54%, significantly higher than the drawdowns of small-cap stocks [3][4]. - The largest convertible bond ETF saw a net outflow of 1.26 billion, indicating a strong trend of institutional selling, which reflects broader market sentiment [4][6]. - The chemical ETF, which grew from under 2 billion to over 37 billion, also faced significant net outflows recently, suggesting that institutional selling is impacting market performance [6]. Group 3: Geopolitical and Economic Implications - The ongoing geopolitical tensions, particularly in the Middle East, are creating a complex environment that affects global oil supply and economic growth, with a significant oil shortfall projected [12][18]. - High oil prices are expected to influence inflation and interest rate expectations, potentially limiting the room for central banks to lower rates, which could suppress stock market valuations [26][27]. - The article emphasizes the need for caution in investment strategies, particularly in light of the current geopolitical landscape and its potential economic repercussions [32][35].

1. Report Industry Investment Rating - Not provided in the report 2. Core View of the Report - As of the market conditions on March 13, combining the "Gain - Crowding" quadrant chart and ETF fund flow, the agricultural sector is worthy of continuous attention. The agricultural sector is steadily increasing in holdings, possibly due to capital betting on the price - rising logic. The breeding sector shows a net inflow of funds, and its upward space depends on policy strength. The coal and battery sectors have a net outflow of funds and may experience short - term fluctuations. The chemical sector has a high participation difficulty [1][23]. 3. Summary According to the Directory 3.1 Market Review - From March 9 - 13, the market fluctuated and declined. As of March 13, 2026, the closing price of the Wind All - A Index was 6750.45, a 0.48% decrease from March 6 [6]. - The ChiNext performed better. From March 9 - 13, most major stock indexes pulled back. The ChiNext Index and the Shenzhen Component Index rose by 2.51% and 0.76% respectively, while the Science and Technology Innovation 50 and the CSI 500 fell by 2.88% and 1.44% respectively [9]. - Stock - type ETFs maintained a net outflow. From March 9 - 12, stock - type ETFs had a net outflow of 20.904 billion yuan, with a larger outflow scale compared to March 2 - 5. Among them, broad - based index ETFs had a net outflow of 28.299 billion yuan, industry - index ETFs had a net outflow of 1.364 billion yuan, and theme - index ETFs had a net inflow of 4.807 billion yuan [11][12]. - At the industry level, batteries and coal led the gains. The battery index rose by 8.40%, and its crowding - degree quantile since 2020 rose to 68.6%, an increase of 37.4 percentage points. The coal index rose by 6.60%, and its crowding - degree quantile since 2020 rose 7.50 percentage points to 59.70%. Aerospace and military industry and non - ferrous metals fell significantly, and their crowding degrees declined from high levels. The agricultural and livestock sector rose moderately, with little change in crowding degree. The chemical industry index fell slightly, but its crowding degree increased significantly [15][16]. 3.2 Follow - up Attention - The agricultural sector is steadily increasing in holdings and is a direction for capital to bet on the price - rising logic. The agricultural ETF rose 2.68% this week, with a net inflow of 717 million yuan. It has had a net inflow for 9 consecutive days, with a cumulative 1.095 billion yuan, accounting for 29.48% of its fund scale [23]. - The breeding sector also shows a net inflow of funds, and its upward space depends on policy strength. The breeding ETF rose 1.54% this week, with a net inflow of 447 million yuan. If the policy implementation intensity increases, the price of live pigs may recover, and the sector still has upward space [23]. - The chemical sector has a high participation difficulty. From March 9 - 12, the chemical ETF fell 0.42%, with a net outflow of 557 million yuan. After the Spring Festival, the cashing pressure in the sector increased, and from February 24 to March 13, there was a cumulative net outflow of 1.39 billion yuan. The index crowding degree has risen to a relatively high level since 2020 [24]. - The coal and battery sectors have a net outflow of funds and may experience short - term fluctuations. The battery ETF and the coal ETF rose 8.49% and 6.63% respectively this week, with net outflows of 309 million yuan and 795 million yuan respectively. The battery sector may adjust in the short term, and the subsequent market of the coal sector is greatly affected by the situation in the Middle East [24].

Core Viewpoint - The article discusses the strong performance of A-shares and H-shares in the Chinese stock market compared to other Asia-Pacific markets, highlighting the potential for foreign capital to increase its allocation to China amid geopolitical tensions [1][3][15]. Group 1: Market Performance - A-shares and H-shares have shown resilience, with a decline of around 1% compared to 5-6% in Japan and South Korea, indicating a "China asset" outperformance [3][4]. - The Hang Seng Index and Wind All A Index have experienced declines of -8.47% and -4.31% respectively, while the Nikkei 225 and Korean Composite Index have seen larger declines [6]. Group 2: Foreign Capital Inflow - There are indications of foreign capital increasing its allocation to A-shares, as evidenced by record high securities investment surpluses in January [15]. - In the Hong Kong market, passive index products have consistently seen inflows, suggesting a trend of foreign investment [16][18]. Group 3: Geopolitical Context - The Hong Kong Financial Secretary noted that ongoing tensions in the Middle East are driving U.S. funds into Hong Kong, as nearly 60% of listed companies are mainland enterprises, providing stability [20][24]. - The diversification of energy imports and proactive energy transition in China are highlighted as strengths in the current geopolitical climate [10][12]. Group 4: Investment Strategy - The article emphasizes that foreign capital is not merely increasing allocations but is also correcting under-allocated positions in China, as evidenced by the low representation of China in global indices [26][30]. - The current low interest rate environment is identified as a significant factor driving investment decisions, with A-shares being viewed as a valuable asset class [35][39]. Group 5: Market Trends and Recommendations - The article suggests that investors should focus on long-term capital and appropriate risk matching, especially in the context of potential market volatility [53]. - It advocates for a diversified investment approach, particularly in high-quality equity investments, as a favorable strategy for ordinary investors [53].

Summary of Conference Call Notes Industry Overview - The notes reflect the current state of the U.S. stock market, particularly focusing on the impact of geopolitical tensions and regulatory considerations on technology and energy sectors [1][2][3][4][5][6][7][8]. Key Points and Arguments 1. **U.S. Stock Market Volatility**: The U.S. stock market experienced fluctuations due to rumors of new regulations requiring global approval for AI chip purchases, leading to a significant drop in chip stocks [1]. 2. **Geopolitical Tensions**: Ongoing tensions in the Middle East have created uncertainty, with fluctuating oil prices impacting market sentiment. Initial spikes in oil prices were followed by a recovery after news of potential U.S. measures to stabilize the market [2][3][5][6]. 3. **Government Policy Response**: The recent government work report from the two sessions was largely in line with expectations, lacking new initiatives to alleviate geopolitical concerns. This resulted in a significant outflow of capital from the market, indicating a cautious investor sentiment [7]. 4. **Market Dynamics**: The A-share market followed global trends with moderate performance, suggesting limited buying interest. The market is expected to take 2-3 weeks to digest recent volatility, with no immediate expectations for a rebound [7]. 5. **Sector Rotation**: The market is experiencing a rotation between cyclical and technology stocks, with a focus on computing power and related sectors. Recent performance in mechanical and electrical equipment, as well as public utility ETFs, has been positive [7][8]. 6. **Investment Strategies**: There is a potential shift in investor focus towards mid-term asset impacts, with interest in oil and agricultural ETFs. The notes suggest that recent volatility has allowed for speculative sentiment to be digested, creating opportunities in certain sectors [8]. 7. **Technology Sector Outlook**: The technology sector is expected to see increased investment, particularly in ETFs that have experienced significant declines. Recommendations include the Science and Technology Innovation 100 ETF and others that have shown potential for recovery [8]. Additional Important Content - The notes highlight the importance of monitoring geopolitical developments and their potential impact on market dynamics, particularly in the energy and technology sectors [2][3][4][5][6][7][8]. - The mention of specific ETFs indicates a strategic approach to investment, focusing on sectors that may benefit from current market conditions and investor sentiment [8].