Market Overview - The Shanghai Composite Index fell by 0.64% to close at 4138.76 points, with a high of 4179.7 points during the day [1] - The Shenzhen Component Index decreased by 1.37% to 14169.4 points, reaching a peak of 14458.88 points [1] - The ChiNext Index dropped by 1.96% to 3321.89 points, with a maximum of 3416.84 points [1] ETF Market Performance - The median return of stock ETFs was -0.95% [2] - The highest performing scale index ETF was the Bosera CSI A100 ETF with a return of 1.72% [2] - The highest performing industry index ETF was the Yinhua CSI All-Share Power Utility ETF with a return of 2.1% [2] - The highest performing strategy index ETF was the E Fund National Free Cash Flow ETF with a return of 0.83% [2] - The highest performing style index ETF was the Harvest CSI Pharmaceutical Health 100 Strategy ETF with a return of 1.82% [2] - The highest performing thematic index ETF was the Guotai Hangseng A-Share Power Equipment ETF with a return of 7.37% [2] ETF Performance Rankings - The top three ETFs by return were: - Guotai Hangseng A-Share Power Equipment ETF (7.37%) - Yinhua CSI Oil and Gas Resources ETF (2.84%) - Huaxia CSI Power Equipment Thematic ETF (2.83%) [5] - The top three ETFs by decline were: - Morgan CSI Innovation and Entrepreneurship Artificial Intelligence ETF (-11.42%) - Huaxia National Aerospace Industry ETF (-9.36%) - Huatai Baichuan CSI All-Share Aerospace ETF (-9.17%) [6] ETF Fund Flows - The top three ETFs by fund inflow were: - GF CSI Media ETF (inflow of 4.122 billion) - Yongying National Commercial Satellite Communication Industry ETF (inflow of 1.886 billion) - Harvest CSI Software Service ETF (inflow of 1.507 billion) [8] - The top three ETFs by fund outflow were: - Huaxia SSE 50 ETF (outflow of 1.448 billion) - E Fund ChiNext ETF (outflow of 1.386 billion) - Huaxia CSI Robot ETF (outflow of 572 million) [10] ETF Margin Trading Overview - The top three ETFs by margin buying were: - Huaxia SSE Sci-Tech Innovation Board 50 ETF (0.95 billion) - GF CSI Media ETF (0.747 billion) - Guotai CSI All-Share Securities Company ETF (0.568 billion) [11] - The top three ETFs by margin selling were: - Huatai Baichuan CSI 300 ETF (33.78 million) - Huaxia SSE 50 ETF (24.27 million) - Southern CSI 500 ETF (15.93 million) [13] Institutional Insights - Huaxin Securities highlighted the ongoing modernization of the power grid and the expanding equipment gap, noting that North America's long-term investment in key areas like high-voltage transformers and distribution equipment has been insufficient [13] - The demand for high-voltage and ultra-high-voltage transformers, switching equipment, and digital grid infrastructure is expected to increase as the grid enters an accelerated investment cycle [13] - Guotai Securities anticipates that domestic power grid investment will maintain a high level of activity, benefiting from proactive fiscal policies aimed at expanding domestic demand [14]

Market Overview - In the week from January 5 to January 9, 2026, 30 out of 31 industries in the Shenwan first-level industry index rose, with the comprehensive sector leading at a 14.55% increase, followed by defense and military at 13.63% and media at 13.10%. The only sector that declined was banking, which fell by 1.90% [10][11] - The Shanghai Composite Index closed at 4120.43, up 3.82%, while the Shenzhen Component Index rose 4.40% to 14120.15. The average daily trading volume in the Shanghai and Shenzhen markets was 28259.76 billion, totaling 14.13 trillion for the week [10][11] ETF Market Performance - A total of 10 new stock ETFs were listed during the week, including two AI ETFs focused on innovation and entrepreneurship, with a total issuance scale of 4.83 billion [19][21] - The median weekly return for stock ETFs was 4.30%, with the satellite ETF from E Fund showing the highest increase at 22.46%. Conversely, the banking ETF experienced the largest decline at 2.00% [22][23] - The median weekly return for bond ETFs was -0.03%, with convertible bond ETFs performing the best, rising by 4.47% [25][26] - The median return for cross-border ETFs was 2.34%, with the Sino-Korean semiconductor ETF leading at a 15.52% increase [27][28] ETF Strategy Tracking - The PB-ROE framework identified communication, agriculture, forestry, animal husbandry, and transportation as key sectors for the week, with a cumulative strategy return of 1.31%, underperforming the CSI 300 index by 1.47% [6][32] - Since the beginning of 2023, the strategy has achieved a cumulative return of 27.12%, outperforming the CSI 300 index by 4.20% [34] Investment Recommendations - The report recommends focusing on the communication, agriculture, forestry, and transportation sectors for the upcoming week, along with ETFs corresponding to these industries. Additionally, it suggests monitoring wine ETFs, ChiNext 50 ETFs, medical ETFs, chip ETFs, and robot ETFs based on ETF subscription sentiment indicators [7][39]

Group 1 - The total public fund inflow after the New Year holiday exceeded 43 billion yuan, with 16 ETFs set to launch, collectively raising nearly 5 billion yuan [1] - The active equity funds established after November 2025 have a combined scale of over 38.7 billion yuan, indicating significant capital entering the market [4] Group 2 - The majority of ETF holders are individual investors, with some products having over 90% of their shares held by them, highlighting a strong retail interest [3] - Predictions suggest that an additional 2 trillion to 4 trillion yuan of liquid funds could enter the non-fixed deposit investment sector by 2026, indicating a substantial potential for market growth [3] - Six ETFs are scheduled to launch in the first week of 2026, with four of them debuting on January 5, 2026, contributing over 2 billion yuan to the A-share market [4]

Core Viewpoint - The article discusses the anticipated influx of public funds into the market in 2026, driven by the launch of ETFs and actively managed equity funds, with a total expected scale exceeding 430 billion yuan by the end of 2025 [1][6]. Group 1: ETF Market - Six ETFs are set to launch in the first week of 2026, with a total funding of over 20 billion yuan, including significant contributions from individual investors [3][9]. - The total scale of the 16 ETFs expected to enter the market after New Year's is nearly 50 billion yuan, with a focus on technology and innovation sectors [3][6]. - The stock positions of these ETFs are currently low, indicating potential for future growth as they begin to deploy their capital [3][5]. Group 2: Actively Managed Equity Funds - Over 66 actively managed equity funds were established by the end of December 2025, with a total fundraising of approximately 387.35 billion yuan, contributing significantly to the market [4][5]. - The average return of these newly established funds is relatively low, suggesting that a substantial portion of the raised capital is yet to be invested [5]. Group 3: Potential for Increased Investment - There is a significant potential for "deposit migration" into the market, with estimates suggesting an additional 2 trillion to 4 trillion yuan could flow into non-fixed deposit investments in 2026 [10]. - The total scale of ETFs reached over 6 trillion yuan by the end of 2025, with nearly 1 trillion yuan added during that year, indicating strong investor interest [10]. Group 4: Market Dynamics and Future Outlook - The market is expected to shift its driving factors from valuation to profitability, with anticipated recovery in earnings growth and return on equity (ROE) levels in 2026 [11][12]. - The technology investment landscape is expected to become more challenging in 2026, requiring precise industry timing and stock selection to achieve excess returns [13].

Group 1 - Four stock ETFs have released listing announcements, with the highest stock positions being 42.62% for Morgan CSI Innovation and Entrepreneurship AI ETF and 39.89% for Penghua CSI Innovation and Entrepreneurship AI ETF [1] - A total of 20 stock ETFs have announced listings since December, with an average position of 28.45%, and the highest being 75.70% for the CSI Innovation and Entrepreneurship AI ETF from ICBC [1] - Generally, ETFs must meet the position requirements specified in the fund contract before listing, and if the position is low, they will complete the building of positions before the official listing [1] Group 2 - The average number of shares raised by the newly announced ETFs in December is 427 million, with the largest being E Fund CSI Innovation and Entrepreneurship AI ETF at 1.336 billion shares [2] - Institutional investors hold an average of 20.71% of the shares, with the highest being 64.43% for Huabao CSI Hong Kong Stock Connect Automotive Industry Theme ETF [2] - The newly established stock ETFs have varying positions, with some having 0.00% positions at the time of the announcement [2][3]

Core Points - The Morgan Zhongzheng Sci-Tech Innovation and Entrepreneurship Artificial Intelligence ETF (588423) is set to be launched for subscription from November 28, 2025, to December 12, 2025, with a maximum fundraising scale of 8 billion yuan [1] - The fund will be referred to as "AI Shuang Chuang" in the market, managed by Morgan Fund, with Qu Leilei serving as the fund manager [1] - The performance benchmark for the fund is the return rate of the Zhongzheng Sci-Tech Innovation and Entrepreneurship Artificial Intelligence Index [1]

Group 1 - The first batch of AI-focused ETFs has been approved, potentially bringing new capital to China's "hard technology" sector [1] - The Morgan Zhongzheng AI ETF is the only product among the first seven launched by a foreign public fund institution, tracking the Zhongzheng AI Index [1] - The Zhongzheng AI Index was published on May 14, 2025, selecting stocks from the Sci-Tech Innovation Board and the ChiNext that meet specific criteria, including a listing time of over six months and a ranking in the top 30 by average total market capitalization [1] Group 2 - China's AI industry shows significant investment value, with East Asia, including China, attracting capital due to its key position in the global semiconductor and AI supply chains [2] - Morgan Asset Management has become the second-largest active ETF manager globally as of September 2025, with the highest net inflow of active ETFs in 2024 [2] - Morgan Asset Management (China) has launched 11 ETF products by October 2025, focusing on a boutique strategy that includes various types of ETFs, and has introduced an innovative "quarterly mandatory dividend" mechanism [2]