Group 1 - The first batch of equity funds has entered the second quarter report disclosure period, with three funds from Tongtai Fund leading the way [1] - Tongtai Yuanjian focuses on the North Exchange market and ranks high among similar funds, while Tongtai Financial Selection maintains a focus on the financial sector [1][4] - The North Exchange market has seen a significant rebound, with the North Zheng 50 Index up 35.9% year-to-date as of July 9 [3] Group 2 - Tongtai Yuanjian's net value increased by 47.06% year-to-date, indicating strong performance in a volatile market [3] - Tongtai Industry Upgrade shifted its focus from bank stocks to the humanoid robot industry, reflecting a strategic adjustment due to market conditions [4] - The financial sector remains a key focus for Tongtai Financial Selection, which emphasizes the low valuation of brokerage and fintech stocks [4] Group 3 - The overall market is still leaning towards technology growth sectors, particularly small-cap stocks, with Tongtai Industry Upgrade showing a year-to-date net value increase of 17.32% [4] - As of the end of the second quarter, Tongtai Yuanjian's scale decreased to 237 million, while Tongtai Industry Upgrade's scale increased significantly to 145 million [4] - The second half of the year is expected to see continued focus on technology and finance, with potential growth in fintech and robotics sectors [6][7]

Core Viewpoint - The North Exchange (北交所) themed funds have shown strong performance in 2023, with all funds achieving over 18% positive returns, and 25 funds exceeding 30% growth, driven by supportive policies, diversified institutional investments, improved market liquidity, and enhanced fundamentals [2][4][5]. Group 1: Performance of North Exchange Themed Funds - North Exchange themed funds have become one of the strongest performing themes in the market, alongside robotics and Hong Kong technology funds, with all funds achieving positive returns this year [4]. - There are over 30 North Exchange themed funds, with 22 being index or enhanced index funds and the remaining being actively managed funds [4]. - The actively managed funds include two open subscription funds, focusing on growth investments and identifying "specialized, refined, unique, and innovative" enterprises [4][6]. Group 2: Factors Driving Market Strength - The rebound in the North Exchange market is attributed to multiple favorable factors, including continuous policy support, diversified institutional investments, improved liquidity, and better fundamentals [6][7]. - Policies such as the "Deep Reform 19 Articles" and "Merger and Acquisition Six Articles" have optimized listing and liquidity mechanisms, enhancing market attractiveness [6][7]. - Over 80% of North Exchange companies reported profit growth, driven by technological innovation and demand recovery, leading to improved gross margins and revenue [7][8]. Group 3: Future Market Outlook - The North Exchange's strong performance is a result of the synergy between policies, capital, and asset quality, with a focus on identifying reasonably valued targets for short-term investments [9]. - The market is expected to see more "small giant" enterprises listed, increasing the scarcity of investment targets and further driving the market [7][9]. - Institutional participation in the North Exchange is gradually increasing, with public funds steadily investing and private equity becoming a major player [8][10].