Financial Performance - In Q4 2025, the fund reported a realized income of 16.05 million yuan but incurred a loss of 59.38 million yuan, resulting in a quarterly loss of 59.4 million yuan [1] - As of the end of the reporting period, the fund's net asset value was 699.42 million yuan, with a fund share net value of 0.9017 yuan [1] Fund Performance - Over the past three months, the fund's share net value decreased by 7.53%, outperforming the benchmark by 0.18 percentage points, which had a return of -7.71% [2] - In the past year, the fund achieved a net value growth of 21.57%, significantly surpassing the benchmark's growth of 19.26%, resulting in an excess return of 2.31 percentage points [2] Investment Strategy and Operations - The fund follows a passive index replication strategy, primarily tracking the Hang Seng China Enterprises Index, with a daily tracking deviation not exceeding 0.3% and an annual tracking error within 2% [2] Macroeconomic and Market Outlook - The U.S. economy in Q4 2025 exhibited characteristics of "high inflation and weak employment," with the Federal Reserve cutting interest rates by 25 basis points in October and December [3] - The Hong Kong stock market faced liquidity pressure due to reduced expectations of further rate cuts by the Federal Reserve, impacting the performance of the Hang Seng China Enterprises Index [3] Asset Allocation - At the end of the reporting period, the fund's total assets were 711 million yuan, with equity investments accounting for 90.04% (640 million yuan) [4] - The fund's equity investments included 80.55% in Hong Kong stocks through the Stock Connect mechanism, valued at 563 million yuan [4] Sector Allocation - The top three sectors in the fund's equity investments were Consumer Discretionary (23.99%), Financials (23.35%), and Communication Services (17.42%), collectively representing 64.76% of the fund's net asset value [5] Top Holdings - The top three holdings were Tencent Holdings (7.29%), Alibaba Group (6.80%), and China Construction Bank (6.13%), together accounting for 20.22% of the fund's net asset value [6] Share Changes - The fund experienced a net redemption of 61 million shares, resulting in a 7.29% decrease in total shares from 836.7 million to 775.7 million [7]

Core Viewpoint - The article highlights the strong performance of Hong Kong ETFs in 2025, driven by optimistic market sentiment and significant capital inflows, particularly in technology sectors such as robotics and artificial intelligence [2][7]. Group 1: Hong Kong Market Performance - The Hang Seng Index and Hang Seng Tech Index have shown notable increases of 16.1008% and 15.7185% respectively as of May 30, 2025, indicating a robust start to the year [2]. - The overall positive sentiment in the Hong Kong market is attributed to a favorable global monetary policy environment and China's economic resilience, which enhances the attractiveness of Hong Kong stocks compared to A-shares [7]. Group 2: Understanding Hong Kong ETFs - Hong Kong ETFs are funds that track Hong Kong-listed stocks, allowing investors to gain exposure to the market through a single investment, similar to a "one-click package" of quality stocks [3]. - These ETFs are primarily listed on mainland exchanges, enabling domestic investors to trade them in RMB without needing a Hong Kong stock account, thus lowering entry barriers for investors [3][4]. Group 3: Advantages of Hong Kong ETFs - The cross-border nature of Hong Kong ETFs allows for easier access to the Hong Kong market without the need for additional accounts or foreign exchange quotas, making them suitable for first-time investors [4]. - Unlike the T+1 settlement of most A-shares, some Hong Kong ETFs offer T+0 trading, providing greater flexibility for short-term trading strategies [5]. - The trading costs associated with Hong Kong ETFs are generally lower than direct investments in Hong Kong stocks, as they are exempt from certain fees like stamp duty, enhancing their long-term investment value [6]. Group 4: Current ETF Offerings - A list of current Hong Kong ETFs available for margin trading includes various funds such as Huazhang Hang Seng Internet Technology ETF, GF Hang Seng Consumer ETF, and others, providing diverse investment options for investors [9].