Strategy Overview - The report recommends a strategy focused on industry and thematic ETFs, particularly in the film, liquor, and telecommunications sectors for the week of March 23, 2026[2] - New holdings include Film ETF, Liquor ETF, Telecom ETF from E Fund, Media ETF from Guangfa, and Communication ETF from Southern[2] Performance Metrics - From March 16 to March 20, 2026, the strategy recorded a cumulative net return of approximately -6.60%[3] - The strategy's excess return relative to the CSI 300 ETF was about -4.44% during the same period[3] - Since October 14, 2024, the cumulative return of the strategy is approximately 29.26%, with an excess return of about 8.24% compared to the CSI 300 ETF[3] Risk Indicators - The timing signals for some ETFs and indices provided daily or weekly risk alerts as of last weekend[2] - The report highlights potential rapid style shifts within a week and abnormal increases in the discount rates of certain ETFs[6] ETF Holdings and Changes - The report lists specific ETFs with their market values and weekly performance, indicating adjustments in holdings based on recent performance trends[11][12] - The average return of the ETF portfolio was -6.60%, while the excess return compared to the CSI 300 ETF was -4.44%[12]

Market Overview - A-shares opened positively in the Year of the Horse, with the Shanghai Composite Index rising by 0.87%, the Shenzhen Component Index increasing by 1.36%, and the ChiNext Index up by 0.99% [1] - The total trading volume in Shanghai, Shenzhen, and Beijing reached 22,184 billion, an increase of 2,193 billion compared to the previous trading day [1] Sector Performance - The oil and gas sector experienced a significant surge, with the S&P Oil & Gas ETF rising nearly 10% in a single day [2] - The top-performing ETFs in the oil and gas category included: - S&P Oil & Gas ETF (213350) up by 9.73% - S&P Oil & Gas ETF by Harvest (159518) up by 9.66% - Oil & Gas ETF by Yinhua (263150) up by 9.53% [2] - The semiconductor sector saw the China-Korea Semiconductor ETF (513310) rise by 6.88%, making it the only technology stock in the top ten gainers [3] Declining Sectors - The film and gaming sectors faced significant adjustments, with multiple ETFs in these categories experiencing declines: - Film ETF (516620) down by 7.80% - Gaming ETF by Huatai (516770) down by 4.80% [4] - The Hong Kong internet sector also faced pressure, with several products dropping over 4% as market risk aversion increased [4] Trading Activity - The Short-term Bond ETF (211360) recorded a trading volume exceeding 55 billion, indicating strong activity in bond and cross-border products [5] - The top ETFs by trading volume included: - Short-term Bond ETF (211360) at 551.98 billion - Yinhua Daily Profit ETF (211880) at 189.18 billion [5] Turnover Rates - The Brazil ETF (159100) had a turnover rate of 216.31%, while the S&P Oil & Gas ETF (513350) had a turnover rate of 152.76%, indicating high trading activity in cross-border QDII products [6][7] - The China-Korea Semiconductor ETF (159700) also showed a turnover rate exceeding 120%, reflecting rapid fund rotation between fixed income and cross-border assets [7] New ETF Launch - Harvest Fund's Livestock ETF (159172) will begin fundraising on February 25, focusing on the entire livestock breeding industry chain [8] - The ETF will track the CSI Livestock Breeding Industry Index, covering sectors such as feed, livestock breeding, and meat processing, providing investors with a tool to invest in the pig breeding cycle [8]

Market Overview - The market experienced a pullback after a rise, with the ChiNext Index briefly increasing by over 2% [1] - Oil and gas stocks collectively rose, while the film and AI application sectors saw significant declines [1] ETF Performance - Multiple oil and gas-related ETFs saw gains exceeding 9%, with specific performances as follows: - S&P Oil and Gas ETF (513350.SH) rose by 9.73% to 1.162 - S&P Oil and Gas ETF (159518.SZ) increased by 9.66% to 1.101 - Other notable ETFs include: - Oil and Gas ETF (563150.SH) up by 9.53% to 1.436 - Oil and Gas ETF (561760.SH) up by 8.42% to 1.43 [2] Sector Analysis - Brokerages indicate that despite geopolitical uncertainties, the medium to long-term oil supply and demand dynamics remain favorable, maintaining a positive outlook on major oil companies and oil service sectors [3] - The recovery of the macro economy is expected to boost chemical demand, with long-term benefits for leading companies in refining, coal chemical, and ethylene sectors [3] Declining Sectors - The film sector faced significant declines, with the Film ETF (516620.SH) dropping by 7.8% to 1.182 and other related ETFs also experiencing losses [4][5] - The National Film Bureau reported that the box office for the 2026 Spring Festival reached 5.752 billion yuan, with 120 million attendees, indicating a diverse range of film genres catering to various demographics [5]

Group 1 - The oil and gas ETFs led the market with significant gains, with Bosera Oil and Gas ETF (561760) rising by 7.88%, Yinhua Oil and Gas ETF (563150) increasing by 7.32%, and S&P Oil and Gas ETF (513350) up by 7.27% [1] - The film industry ETFs experienced notable declines, with the Film ETF (516620) dropping by 6.71% and the Film ETF (159855) falling by 6.58% [1] - The gaming ETF from Huatai-PB (516770) also saw a decrease, with a decline of 4.45% [1]

Core Insights - The overall box office for the film market in 2025 is projected to reach 51.8 billion yuan, representing a year-on-year growth of 22% [1] - The Chinese New Year release of the film "Ne Zha" has made a significant contribution to the box office, although there is a noted decline in growth after its initial success [1] - The performance during the Chinese New Year period is expected to set the tone for the entire year's box office [1] Industry Analysis - The film market is experiencing a pronounced "Matthew Effect," where successful films attract more attention and revenue, while less successful ones struggle [1] - The upcoming 9-day Chinese New Year holiday in 2026 is anticipated to provide a more favorable window for box office revenue [1] - Recent advancements in AI video tools are expected to empower the film and cinema industry in the long term [1] ETF Overview - The film ETF (516620) tracks the CSI Film Index (930781), which includes listed companies involved in film production, distribution, and exhibition [1] - The index reflects the overall performance of the entertainment and media sector, particularly the film industry, by covering various segments of the film value chain [1] - The industry allocation of the index is primarily in communication services, with additional representation from consumer discretionary, industrials, and information technology sectors [1]

- The provided content does not include any quantitative models or factors, nor their construction, evaluation, or backtesting results

- The report does not contain any quantitative models or factors for analysis[1][2][3][4]

Market Performance - The Shanghai Composite Index rose by 0.05%, while the ChiNext Index increased by 1.32% [1] - The total trading volume in the Shanghai, Shenzhen, and Beijing markets reached 21,608 billion yuan, an increase of 1,597 billion yuan compared to the previous day [1] - Over 2,100 stocks across the three markets experienced gains [1] Sector Performance - The computing hardware industry chain rebounded, with CPO and memory sectors leading the gains [1] - Active sectors included cloud computing, ultra-high voltage, rare earth permanent magnets, semiconductors, and small metal concept stocks [1] - Conversely, the film, short drama, and gaming sectors continued to adjust, while retail, food, and liquor consumption stocks performed poorly [1] ETF Performance - Some cross-border ETFs showed strong performance, with the Huaxia Fund Brazil ETF and the Huaan Fund France CAC40 ETF rising by 6.24% and 4.57%, respectively [1] - The sci-tech chip design sector saw afternoon gains, with the Guolian An Fund Sci-Tech Chip Design ETF and the Guangfa Sci-Tech Chip Design ETF increasing by 4.43% and 4.28%, respectively [1] - The CPO sector was active, with the Huaxia Sci-Tech Artificial Intelligence ETF and the Southern Sci-Tech Artificial Intelligence ETF both rising by 4% [1] - The AI application sector continued to decline, with two film ETFs dropping by 3% [1] - The gaming sector also fell, with the Huatai Bairui Gaming ETF decreasing by 2% [1] - The Hong Kong stock market's innovative drug sector declined, with the Bank of China Hong Kong Stock Connect Innovative Drug ETF falling by 2.5% [1]

Core Viewpoint - The film and entertainment sector is experiencing a decline, with major stocks such as Light Media falling over 10%, China Film dropping more than 7%, and Huace Film decreasing over 4% [1] Group 1: Stock Performance - The film ETF has decreased by over 3%, with specific ETFs showing declines of 3.84% and 3.88% respectively [2] - Light Media's stock price fell significantly, reflecting broader market trends in the film industry [1] Group 2: Market Outlook - Analysts suggest that the upcoming Spring Festival will catalyze the film sector, with multiple films already scheduled for release in 2026 [2] - The diversity of themes and strong star lineups for this year's Spring Festival films are expected to positively influence market sentiment [2] - Seasonal demand for entertainment consumption during the Spring Festival is anticipated to provide a boost to the sector [2]

Group 1 - The resource sector, represented by non-ferrous metals, showed strong performance with multiple rare metal ETFs rising over 3% and mining, non-ferrous, gold, rare earth, and chemical ETFs generally increasing over 2% [1][2] - The Nikkei 225 theme ETF rose by 4.85%, with a premium rate increasing to 4.79%, while the Dow Jones ETF also saw a premium rate rise above 5% as the Dow Jones Industrial Average reached a new high [2][3] - Bond ETFs experienced significant trading activity, with total transaction volume increasing by over 90 billion yuan compared to the previous day, and the short-term bond ETF Hai Futong reached a historical high transaction volume of over 63 billion yuan [5][6] Group 2 - Recent market trends indicate a shift of funds from broad-based ETFs to industry-specific theme ETFs, with significant net outflows from the CSI 300 and CSI A500 theme ETFs, while the tourism ETF maintained a net inflow for 17 consecutive trading days, reaching a historical high in scale [7][8] - The film and media ETFs, which benefited from AI applications, experienced a collective pullback, with the film ETF dropping nearly 6% and the media ETF declining over 2% [3][4] - Fund managers are focusing on three key areas for investment: AI hardware driven by overseas trends, high-end manufacturing in new energy and innovative pharmaceuticals, and domestic price increase chains in chemicals, building materials, and steel [9]