Core Viewpoint - Morgan MSCI China A-Share ETF reported a net asset value increase of 1.78% for Q2 2025, with a total fund size of 0.82 billion yuan, reflecting a year-on-year net value growth of 19.05% [1][2]. Fund Performance - The fund's performance over the past year ranks 1639 out of 2395 similar funds, with a median net value growth of 25.63% among peers [1]. - The maximum drawdown for the past year was -15.31%, while the maximum drawdown since inception reached -37.82% [1]. Fund Size and Asset Allocation - The fund size decreased by 202.46 million yuan from the previous period, representing a 2.41% decline [2]. - The current asset allocation shows 98.63% in equities, 1.55% in cash, and no bond assets [2]. Top Holdings - The top ten stock holdings account for 19.66% of the fund, with Kweichow Moutai (600519) being the largest holding at 4.55% [2][3]. Fund Manager Insights - The current fund manager, He Zhihao, has been in charge since February 19, 2021, with a cumulative return of -17.71% during his tenure [4]. - The fund manager noted that the A-share market is at the beginning of a new expansion cycle, with small-cap stocks performing better than large-cap stocks [7]. Market Outlook - The A-share non-financial companies ended a streak of eight consecutive quarters of profit decline, with a 4.2% year-on-year net profit growth in Q1 2025 [7]. - If the fundamentals continue to improve, coupled with a weaker dollar, there is potential for foreign capital to flow back into Chinese core assets, which are still relatively undervalued globally [7].