Group 1 - The core viewpoint of the articles indicates that star fund managers are reducing their holdings in high-heat stocks and reallocating towards mid-cap technology, cyclical manufacturing, and undervalued consumer sectors, suggesting a shift in investment strategy from "beta" to "alpha + cash flow" [1] - The four major A-share indices collectively rose, with the Shanghai Composite Index up 0.08% to 4116.94 points, the Shenzhen Component Index up 0.7% to 14255.13 points, the ChiNext Index up 0.54% to 3295.52 points, and the STAR 50 Index up 3.53% to 1535.39 points, indicating a positive market sentiment [1] - The trading volume in the Shanghai, Shenzhen, and Beijing markets was 26.236 billion yuan, a decrease of 1.805 billion yuan from the previous day, with over 3000 stocks in the three markets showing gains [1] Group 2 - In the fund news section, seven new funds were launched on January 21, primarily consisting of ETF-linked funds and bond funds, with the Huaxia CSI 500 Free Cash Flow ETF Linked A aiming to raise 8 billion yuan [2] - The quarterly reports reveal that 45 actively managed equity funds doubled their scale in a single quarter, driven by technology and non-ferrous metals, while over half of the products chose to reduce stock positions amid market volatility [2] - On January 20, China Europe Fund resumed large-scale subscriptions for its two-year holding period mixed fund, while China Merchants Fund restricted large subscriptions for its pure bond fund, reflecting differing liquidity and strategy environments in the equity and bond markets [2]

Core Viewpoint - The A-share market in 2025 demonstrated a structural trend, with actively managed equity funds achieving significant excess returns due to excellent stock selection and allocation capabilities [1]. Group 1: Fund Performance - As of December 2025, the Wind data shows that the annual return of the Wind Mixed Equity Fund Index was 33.19%, outperforming the CSI 300 Index (17.66%) and the CSI 800 Index (20.89%) [1]. - Morgan Fund, with over 20 years in the Chinese market, ranked in the top ten for active stock investment management across various time frames, achieving a one-year active management return of 58.14% [2]. - Morgan Fund's flagship product, Morgan China Advantage Mixed A, has delivered a cumulative return of 1471.81% since its inception 21 years ago, significantly exceeding the benchmark return of 244.76% [2]. Group 2: Investment Strategy and Market Outlook - Morgan Fund's investment team anticipates a continued long-term value reassessment of Chinese assets in 2026, identifying structural opportunities in sectors such as technology and high-end manufacturing [4]. - The investment team emphasizes the importance of focusing on quality assets with stable cash flows and sustainable growth, particularly in the context of rising global competitiveness of Chinese industries [4]. - The team sees potential in the AI industry, which is expected to expand from computing power to applications and hardware, and in cyclical value sectors like non-ferrous metals, which are showing improved cash flows and dividends [4]. Group 3: Global Asset Management Strength - Morgan Asset Management, a global leader under JPMorgan, manages nearly 30 trillion RMB in assets, with approximately 9 trillion RMB in equity investments as of September 2025 [3]. - The firm has the highest net inflow in active management and active equity globally in 2024, showcasing its strong market position [3]. - The investment team in China has an average experience of over 12 years, integrating global insights with local practices to ensure investment discipline and strategy stability [3].