Core Viewpoint - Several ETFs tracking the Nikkei 225 index, including the Huazhong Mitsubishi UFJ Nikkei 225 ETF and the E Fund Tomorrow Nikkei 225 ETF, have issued premium risk alerts, advising investors to be cautious of premium risks in secondary market trading [1] Group 1 - The ETFs have highlighted the potential for significant losses if investors purchase at high premiums [1]

Core Insights - The recent surge in cross-border ETFs has led to significant premium risks, with 33 products issuing over 500 premium risk alerts since the fourth quarter began, particularly in US and Japan-themed products [2][4] - The Invesco Great Wall Nasdaq Technology Market Cap Weighted ETF has seen its IOPV premium rate exceed 10% for 25 consecutive trading days, indicating a persistent high premium status [2][5] - The overall scale of cross-border ETFs has increased by nearly 117% year-to-date, significantly outpacing the growth of A-share ETFs, which grew by approximately 28% in the same period [6][7] Premium Risk Alerts - As of November 18, 20 cross-border ETFs issued premium alerts, with the previous trading day seeing 22 alerts, highlighting a trend of frequent premium warnings [3][4] - The frequency of premium alerts has become normalized, with 11 products issuing over 20 alerts each since the start of the fourth quarter [4][5] - The premium situation is not isolated, as multiple products tracking popular indices like Nasdaq 100 and Nikkei 225 are experiencing similar high premium rates [3][4] Market Dynamics - The premium phenomenon reflects a mismatch between QDII quotas and investor demand, alongside factors like index scarcity and foreign exchange volatility, contributing to supply-demand imbalances [6][7] - The cross-border ETF market has seen explosive growth, with the total scale reaching approximately 920.29 billion yuan as of November 17, compared to 424.22 billion yuan at the end of the previous year [6][7] - The number of products exceeding 10 billion yuan in scale has doubled, indicating a strong demand for cross-border investment options [7] Institutional Innovations - Recent regulatory changes have expanded the cross-border investment channels, with six new ETF products included in the "Southbound ETF Connect" list, marking a significant development in the market [8][9] AI Market Sentiment - The discussion around whether the AI sector is experiencing a bubble or genuine growth has intensified, with market volatility increasing due to geopolitical tensions and economic factors [10][11] - Despite short-term fluctuations, many institutions maintain a cautiously optimistic outlook on the US stock market, suggesting that the underlying trends in technology and AI remain strong [11][12]

Core Viewpoint - The recent surge in cross-border ETFs has raised concerns about potential price bubbles, particularly in the context of AI investments, as evidenced by frequent premium warnings and market volatility [1][7]. Group 1: Cross-Border ETF Premiums - A total of 33 cross-border ETF products have issued over 500 premium risk warnings since the beginning of the fourth quarter, with 11 products issuing more than 20 warnings each [2][3]. - The Invesco Great Wall Nasdaq Technology Weighted ETF has maintained an IOPV premium rate above 10% for 25 consecutive trading days, with a premium of 14.82% reported recently [2][3]. - The phenomenon of high premiums is not isolated, as 20 cross-border ETFs issued premium warnings on November 18, indicating a trend of "high-frequency warnings" across the market [2][3]. Group 2: Market Dynamics and Growth - The total scale of cross-border ETFs reached 920.29 billion yuan, reflecting a nearly 117% increase from the previous year, significantly outpacing the 28% growth of A-share ETFs during the same period [5][6]. - The number of products with over 10 billion yuan in assets has doubled from 11 to 22, indicating a strong demand for cross-border investment products [5][6]. - The market has seen a diversification of investment targets, with new ETFs tracking indices from various global markets, including Brazil and Europe, being launched [6]. Group 3: AI Investment Debate - The discussion around whether AI represents a bubble or a genuine growth opportunity has intensified, with some analysts suggesting that the current tech rally is concentrated in high-quality large-cap stocks [7][8]. - Concerns about market volatility have been exacerbated by geopolitical tensions, yet many institutions remain cautiously optimistic about the long-term prospects of the tech sector [9]. - Analysts emphasize the need for AI to demonstrate broader and deeper practical value to avoid a potential bubble, with a critical verification period expected in the next 2 to 3 years [8][9].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the recent week, 3 products were listed, 24 products were established, and 2 Brazilian market investment products are about to be established. In the coming week, 11 index products will end their fundraising, and 15 products will start fundraising. A total of 20 index products were declared in the recent week, with a high enthusiasm for science - innovation board products [1][6][9][13] - In the recent week (2025/10/27 - 2025/10/31), most of the major broad - based A - share ETFs declined, while some US - stock ETFs and commodity ETFs rose. Among A - share industry ETFs, those in the advanced manufacturing sector, especially photovoltaic, battery, and new energy vehicle ETFs, showed significant increases, while some technology - related ETFs had significant declines. In the cross - border ETF market, the Nikkei 225 had the highest increase, and related ETFs also led in gains [3][16][19][22] - As of October 31, 2025, the total scale of the entire market's 1346 ETFs increased by 10.375 billion yuan compared to the previous week. Among non - currency ETFs, ETFs targeting AAA science - innovation bonds had the largest net inflow of funds, while those targeting SGE Gold 9999 had the largest net outflow [3][29][31] 3. Summary According to the Table of Contents 3.1 Index Product Establishment, Fundraising, and Declaration - **Product Establishment and Listing**: In the recent week, 3 products including Huaxia Shanghai Stock Exchange 180ETF were listed, and 24 products including Guoshou Anbao CSI A500 Dividend Low - Volatility ETF were established. Two Brazilian market investment products, Huaxia Bradesco Brazil IBOVESPA ETF and E Fund Itaú Brazil IBOVESPA ETF, have completed fundraising and are about to be established [1][6][7] - **Product Issuance Information**: In the coming week, 11 index products such as Huaxia Shanghai Stock Exchange 180ETF Linked A will end their fundraising, and 15 products such as Boshi CSI Bank ETF will start fundraising [9][10][11] - **Product Declaration Information**: A total of 20 index products were declared in the recent week. Among them, 9 were theme - based products related to the science - innovation board, and only 1 was a broad - based product, the Yongying Shanghai Stock Exchange Science and Technology Innovation Board 200 Index Securities Investment Fund [13][14][15] 3.2 ETF Market Review - **Asset - Type Classification**: Classify ETFs into four categories according to the Merrill Lynch Investment Clock theory: stocks, commodities, cash, and bonds. In the recent week, most major broad - based A - share ETFs declined, some US - stock ETFs rose, and commodity ETFs showed mixed performance. Among A - share industry ETFs, advanced manufacturing sector ETFs rose significantly, while some technology - related ETFs declined [3][16][19] - **Cross - Border ETFs**: In the recent week, the cross - border market's major broad - based indices showed mixed trends. The Nikkei 225 had the highest increase of 6.31%. Among the corresponding broad - based ETFs, Huatai - PineBridge CSI KRX Korea Semiconductor ETF and ICBC Credit Suisse Daiwa Nikkei 225 ETF led in gains. Among non - currency ETFs, Huaan Mitsubishi UFJ Nikkei 225 ETF led in gains with a return of 10.23%, while Guolianan Science and Technology Innovation Chip Design ETF lagged with a return of - 5.40% [22][26] 3.3 ETF Fund Flows - **Overall Scale**: As of October 31, 2025, the entire market had 1346 ETFs, with a total scale of 570.383 billion yuan, an increase of 10.375 billion yuan compared to the previous week. A - share and cross - border ETFs ranked in the top two in terms of scale [29] - **Fund Inflow and Outflow**: Among non - currency ETFs, ETFs targeting AAA science - innovation bonds had the largest net inflow of 7.237 billion yuan, while those targeting SGE Gold 9999 had the largest net outflow of 4.41 billion yuan. Huatai - PineBridge CSI 300 ETF and Tianhong CSI AAA Science and Technology Innovation Corporate Bond ETF had relatively high fund inflows, and Haifutong CSI Short - Term Financing ETF and E Fund CSI Hong Kong Securities Investment Theme ETF had relatively high liquidity [3][31][35]

Market Performance - The Nikkei 225 index closed at a record high of 49,316.06 points on October 21, 2025, with an intraday high of 49,945.95 points, marking a year-to-date increase of 23.62% [2] - Several ETFs tracking the Nikkei 225 index showed significant premiums, with the Huaxia Nomura Nikkei 225 ETF having a premium rate of 5.28% as of October 21 [2] - Trading activity for related ETFs was robust, with the Huaxia Nomura Nikkei 225 ETF achieving a turnover rate of 161.05% and a trading volume of 2.391 billion [2] Political Developments - Fumio Kishida, the president of the Liberal Democratic Party, won 237 votes in the first round of the House of Representatives' prime ministerial election, securing the position of Japan's 104th prime minister [2] ETF Market Dynamics - The five ETFs related to Japanese stocks reached a total scale of 7.119 billion, reflecting a growth of over 60% from 4.382 billion at the beginning of the year [5] - Recent trading price premiums for the Huaxia Nomura Nikkei 225 ETF and others have prompted risk warnings regarding their market prices exceeding net asset values [4][5] Economic Outlook - Analysts expect that Kishida's macroeconomic policies may positively influence nominal GDP growth, which could benefit the Japanese stock market [5] - The outlook for the Japanese market remains optimistic, driven by factors such as corporate profit growth, improved corporate governance, and increased participation from foreign investors [6] - Sectors like finance, construction, and utilities are benefiting from digital transformation and infrastructure demand, presenting attractive investment opportunities [6]

Group 1 - The core viewpoint of the report indicates that the construction materials and coal industries performed well during the period, with the Shanghai Composite Index rising by 1.67% and the Shenzhen Component Index increasing by 2.33% [2][9] - In the recent 12 periods, the comprehensive and pharmaceutical industries showed strong performance, suggesting potential investment opportunities in these sectors [9] - Active equity funds focusing on electronics and coal industries also demonstrated superior performance during this period [14] Group 2 - Among various fund types, actively managed stock funds increased by 1.55%, while mixed funds rose by 1.63%, and bond funds saw a slight decline of 0.16% [2] - The average return of convertible bond funds was notably high at 12.46% year-to-date, indicating a strong performance in this category [17] - QDII funds, particularly those focused on Asia-Pacific and emerging markets, led the performance with an increase of 2.56% during the period [19][21]