Group 1 - The "Fenghuo Cup" private equity selection event organized by Changcheng Securities has attracted over 600 private equity institutions and more than 1,600 products since its launch in October 2025, covering seven core strategies including stock, index enhancement, neutral, arbitrage, CTA, bond, and combination strategies [1] - The event aims to provide ample time for participating institutions to showcase their investment capabilities, with registration open until June 2026 [1] - The initiative is part of Changcheng Securities' effort to create a supportive ecosystem for quality private equity growth, offering diverse resources and platforms for trading execution, investment support, and financing solutions [1] Group 2 - In the macroeconomic context, the current economic cycle is perceived to be in a relatively early stage, with policies aimed at supply-side reform generating positive expectations, although actual progress remains to be verified [2] - The consensus among fund managers is that there are still reasonably valued targets in the market, such as the food and beverage index's price-to-earnings ratio and the Hang Seng Index's price-to-book ratio, both at historical lows [2] - Investment opportunities in the technology sector are highlighted, particularly in AI, with a focus on hardware that has reasonable valuations and is part of new major industry chains [2] Group 3 - Looking ahead to 2026, it is anticipated that more aggressive monetary and fiscal policies will be implemented, with potential further declines in risk-free interest rates and an increase in the value of credit bond allocations [3] - The stock market outlook favors relatively undervalued sectors such as banking, food and beverage, and consumer electronics, alongside technology leaders in AI chips, semiconductor equipment, and computing power [3] - The difficulty of stock selection and timing is expected to increase, making industry ETFs a more cost-effective option for investment [3]

Core Viewpoint - The article discusses the recent market volatility influenced by external liquidity pressures, rising US dollar index, and mixed signals from the AI sector, leading to cautious investor sentiment in the A-share market [2]. Market Performance - The US dollar index strengthened above the 100 mark, causing significant pullbacks in the technology sector and related ETFs, with the Nasdaq experiencing its largest intraday reversal since April [2]. - A-share investors showed a cautious risk appetite, with the ChiNext Index declining by 6.15% over the week, and only about 200 stocks achieving positive returns on Friday [2]. - All 31 first-level industries in the Shenwan classification experienced declines, although the banking sector supported the Shanghai Composite Index, with state-owned large banks rising for three consecutive weeks [2]. Investment Strategies - Despite significant net value drawdowns in several index-enhanced products, the excess return performance remained relatively resilient [2]. - The average return and excess return for CSI 300 index-enhanced products were -3.75% and 0.02%, respectively, with about half of the products showing negative excess returns [5]. - The average return and excess return for CSI 500 index-enhanced products were -5.97% and -0.20%, while for CSI 1000 index-enhanced products, they were -6.08% and -0.30% [5]. Market Style Shifts - A-shares experienced a style shift post-National Day, with a notable focus on high-quality stocks amid concerns over AI sector capital expenditures and revenue performance [9]. - The market saw a preference for lower valuation stocks with strong earnings visibility and low debt ratios, as evidenced by the significant reversal in the scale factor [9]. - The overall drawdown for managers was manageable, indicating a balanced holding style rather than a concentration in micro-cap stocks [11]. Future Market Outlook - The global stock market, including China's, is increasingly correlated due to historical tariff threats and the AI narrative, with technology stocks being a major theme [13]. - Investors are advised to increase allocations to defensive sectors, particularly banking and other low-volatility, reasonably valued high-quality companies [13]. - The potential for US market support policies could positively influence A-share sentiment, making index-enhanced products, especially those focused on innovation and small-cap stocks, attractive in the future [13].