Fund Overview - The fund is named "Huaxia MSCI China A50 Interconnection ETF" and was established on November 1, 2021, with a total fund share of 3,699,588,073.00 shares as of the report date [1][2] - The fund aims to closely track the MSCI China A50 Interconnection Index, targeting an absolute tracking deviation of no more than 0.2% on a daily basis and an annual tracking error of no more than 2% [1][2] - The fund employs various investment strategies, including full replication, alternative strategies, and investment in derivatives [1][2] Financial Performance - The fund achieved a realized income of 126,423,995.03 RMB and a profit of 25,269,600.18 RMB during the reporting period from January 1, 2025, to June 30, 2025 [2][3] - The net asset value at the end of the reporting period was 3,100,756,949.39 RMB, with a net asset value per share of 0.8381 RMB [2][3] - The fund's cumulative net value growth rate since inception is -16.19%, with a net value growth rate of 0.87% for the reporting period [2][3] Market Context - The macroeconomic environment showed a GDP growth of 5.3% year-on-year, with fluctuations in PMI and low inflation levels [11] - The fund's investment strategy is influenced by market conditions, including the impact of trade wars and the performance of various sectors such as artificial intelligence and new consumption [11][12] - The fund's tracking deviation was +1.11%, primarily due to dividend distributions, operational expenses, and adjustments in index composition [12] Management and Operations - The fund is managed by Huaxia Fund Management Co., Ltd., which has extensive experience in managing ETF products and a wide range of investment strategies [3][4] - The fund's liquidity service providers include several major securities firms, ensuring market liquidity and stability [11] - The fund management adheres to strict compliance with regulations and maintains a commitment to fair trading practices [9][10] Future Outlook - The fund anticipates a favorable investment environment due to the potential return of capital to A-shares and H-shares, driven by a weaker dollar and expectations of interest rate cuts by the Federal Reserve [12] - The focus will be on closely tracking the index while adapting to market changes and investor needs [12][13]