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]