Core Viewpoint - The small and micro-cap style has shown strong performance recently, leading to heightened investor enthusiasm for related funds. To prevent rapid fund size expansion and dilution of returns for existing holders, fund companies have implemented purchase restrictions [1][2]. Fund Purchase Restrictions - On June 11, Changsheng Fund announced a limit on purchases for the Changsheng North Certificate 50 Enhanced Index Fund, capping single account purchases at 100 yuan per day. Other funds, such as Huashan North Certificate 50 Index Fund, have also set limits, with some funds restricting daily purchases to amounts ranging from 1,000 yuan to 50,000 yuan [2][3]. Performance of Small and Micro-Cap Indices - The Wind Micro-Cap Index has risen over 30% year-to-date, reaching a new high on June 10. The North Certificate 50 Index has increased nearly 40% this year, also hitting a new peak in late May. These indices have significantly outperformed larger market indices [4][5]. Market Dynamics and Investor Behavior - The recent strong performance of small and micro-cap stocks is attributed to favorable policies and a loose funding environment. The release of the "Major Asset Restructuring Management Measures" has spurred interest in mergers and acquisitions, benefiting small and micro-cap stocks [6][8]. Valuation Metrics - The valuation of the small and micro-cap style is high, with the price-to-earnings ratio of the CSI 2000 Index at 138 times, and the North Certificate 50 Index at 74.52 times, both at historically elevated levels [4][8]. Market Sentiment and Risks - Despite the high trading crowding in small and micro-cap stocks, some institutional investors believe that any potential pullback will depend on the occurrence of substantial negative events. Current policies favoring technology innovation and asset integration support the continued performance of small and micro-cap stocks [7][8].

Core Viewpoint - Multiple North Exchange 50 index funds have recently announced the suspension of large subscriptions to control capital inflow and maintain market stability, reflecting the growing interest in core assets of the North Exchange [1][2][3] Group 1: Fund Actions - ICBC Credit Suisse Fund announced the suspension of large subscriptions for its North Exchange 50 index fund, limiting daily purchases to 50,000 yuan, with a fund size of 517 million yuan and a year-to-date return of 31.3% as of May 27 [1] - Dongfang Caijing North Exchange 50 index fund also suspended large subscriptions, with a limit of 200,000 yuan, having a fund size of 782 million yuan and a year-to-date return of 31.84% [1] - Other funds, such as the China Europe North Exchange 50 index fund, have also implemented subscription limits, with a year-to-date return of 29.96% and a fund size of 750 million yuan [1] Group 2: Market Performance - The North Exchange 50 index has shown a strong upward trend since 2025, with a year-to-date increase of 34.67% as of May 28, outperforming the entire market [2] - In May, the North Exchange 50 index continued to rise, with an overall increase of 3.54% [2] - The North Exchange focuses on supporting "specialized, refined, distinctive, and innovative" enterprises, which, despite being smaller in scale, have high technological barriers and significant growth potential [2][3] Group 3: Investment Value - The North Exchange's liquidity and attention have significantly increased due to policy support and ongoing registration system reforms, providing a direct financing platform for early-stage high-growth companies [3] - The "specialized, refined, distinctive, and innovative" stocks in the North Exchange are expected to benefit from policy support, industry demand, and technological breakthroughs, offering high long-term investment value [3] - The North Exchange 50 index is becoming a focal point for capital inflow, with trading activity in its constituent stocks increasing [3]

Core Insights - Multiple North Exchange 50 index funds have recently announced the suspension of large subscriptions to control capital inflow and maintain market stability [1][2][3] - The North Exchange 50 index has shown strong performance, with a year-to-date increase of 34.67% as of May 28, 2023, leading the overall market [2][3] Fund Actions - ICBC Credit Suisse Fund announced a suspension of large subscriptions for its North Exchange 50 index fund, limiting daily purchases to 50,000 yuan, with a fund size of 517 million yuan and a year-to-date return of 31.3% [1] - Dongcai North Exchange 50 index fund also suspended large subscriptions, with a limit of 200,000 yuan and a fund size of 782 million yuan, achieving a year-to-date return of 31.84% [1] - Other funds, such as E Fund and Pengyang, have implemented subscription limits ranging from 3,000 yuan to 50,000 yuan [2] Market Context - The North Exchange has established a unique position in the multi-tiered capital market, focusing on supporting innovative small and medium-sized enterprises [2][3] - The index includes key stocks from various sectors, such as healthcare, materials, information technology, and industrials, indicating a diversified investment approach [2] Long-term Outlook - The North Exchange is expected to provide unique investment value due to its focus on early-stage high-growth companies and the ongoing policy support for "specialized, refined, distinctive, and innovative" enterprises [3] - The market's small size and limited liquidity of certain constituent stocks may lead to significant price volatility, prompting the need for subscription limits to prevent excessive speculation and ensure market health [3]