- The quantitative index enhancement market has seen rapid growth, expanding from 95.85 billion yuan in 2020 to over 250 billion yuan by 2025[2][14] - The market is characterized by a concentration of top products and an increase in average scale, with leading products continuously breaking new ground[2] - Regulatory policies starting in 2024 have compressed the alpha space for high-frequency T0 strategies, pushing managers to shift from high-frequency trading to mid-to-low-frequency fundamental factor exploration[2] - The average turnover rate of products has generally decreased since 2025, and the quality of index constituent stocks has improved, transforming quantitative index enhancement from a short-term trading tool to a product with long-term asset allocation value[2] - Yongying Fund Management Co., Ltd. is a joint venture fund company established by Ningbo Bank and OCBC Bank, with a management scale exceeding 620 billion yuan as of Q3 2025[3] - Yongying's quantitative index enhancement product system is divided into three categories: regular broad-based index enhancement, special benchmark index enhancement, and quantitative theme index enhancement[3] - The system relies on three core capabilities: full-process application of machine learning, multi-strategy integration, and strict risk control, ensuring stable excess returns and risk control in different market environments[3] - Yongying SSE STAR 100 Index Enhancement A (021278) is an enhanced index product with a stock position maintained above 90% since its inception, showing higher volatility and drawdown compared to similar products but better return performance[4] - Yongying CSI A50 Index Enhancement A (022204) is another enhanced index product with lower volatility and drawdown levels compared to similar products, and better return performance, reflecting good risk-adjusted returns[5]

Core Insights - The index business has seen significant growth, with Yongying Fund achieving a total ETF management scale of 26.8 billion yuan as of October 23, 2025, representing a more than fourfold increase since the beginning of the year [1][11] - Yongying Fund has successfully launched various ETFs, including the first bond ETF and innovative satellite and general aviation ETFs, with the gold stock ETF surpassing 13 billion yuan, becoming the first in China to reach this milestone [1][11] - In the index enhancement sector, Yongying Fund's performance is notable, with the Yongying Shanghai Stock Exchange Sci-Tech Innovation Board 100 Index Enhanced A yielding a 73.06% return over the past year, outperforming its benchmark by 12.08% [1][12] Product Strategy - Yongying Fund's index enhancement strategy emphasizes meticulous operations, focusing on incremental gains for investors. The team employs methods such as new stock subscriptions and stock index futures to enhance returns while controlling risks [2] - The investment operation of Yongying's enhancement products relies on a unique quantitative research system, integrating fundamental logic and AI technology to create a multi-strategy framework that is verifiable and adaptable [2] Technological Empowerment - The success of Yongying Fund's index enhancement business is attributed to its robust technological capabilities, having developed five leading research systems, including the Qianxing Fixed Income Research System and the Mingjing Risk Management System, both of which have received awards from the central bank [3][13] - The company has made significant investments in AI computing power and large models like DeepSeek, enhancing its quantitative investment capabilities in terms of market opportunities and fund tracking [3] Future Outlook - Yongying Fund aims to continuously improve its product offerings and research capabilities, aspiring to create a comprehensive "product shelf" that provides suitable tools or combinations for investors in any market environment [4] - The company has established 13 ETF products covering various themes and indices and has filed for additional index products, including those focused on AI, internet sectors, and chemical industries, to enrich its product portfolio for future business expansion [4]

Core Viewpoint - Yongying Fund has achieved significant growth in its index business, leveraging a unique differentiated layout and quantitative research system, resulting in a distinctive development path in the burgeoning market [2]. Group 1: Performance and Growth - As of October 23, 2025, Yongying Fund's total ETF management scale reached 26.8 billion, growing over four times since the beginning of the year [2]. - The company launched its first bond ETF and saw its innovative satellite ETF and general aviation ETF each surpass 1 billion, while its gold stock ETF exceeded 13 billion, becoming the first gold stock ETF in China to reach this milestone [2][14]. - The Yongying Shanghai Stock Exchange Science and Technology Innovation Board 100 Index Enhanced A fund achieved a one-year return of 73.06%, with an excess return of 12.08% compared to its benchmark [2][14]. Group 2: Investment Strategy - The investment strategy of Yongying's index enhancement funds emphasizes a growth-oriented stock selection model, focusing on technology growth to stabilize excess returns while increasing yield flexibility [3]. - The company employs a meticulous operational approach, aiming to accumulate small profits for investors through strategies like new stock subscriptions and risk stock exclusions [3]. - Yongying's index enhancement products utilize a unique quantitative research system, combining fundamental logic and AI technology to create a multi-strategy framework that is verifiable and iterative [3]. Group 3: Technological Empowerment - Yongying Fund's success in index enhancement is supported by its advanced technology, having developed five leading research systems, including the Qianxing Fixed Income Research System and the Mingjing Risk Management System, both awarded by the central bank [5]. - The company has made significant investments in AI computing power and large models like DeepSeek, enhancing its quantitative investment capabilities [5]. - The team is focusing on deepening machine learning and other cutting-edge technologies to strengthen its competitive advantage in the index enhancement sector [5]. Group 4: Future Outlook - Yongying Fund aims to continuously improve its product offerings and research capabilities, aspiring to create a comprehensive "product shelf" to provide suitable tools or combinations for investors in any market environment [6]. - The company has established 13 ETF products covering various themes and indices and has filed for multiple new index products, including those focused on AI and the chemical industry, to enrich its product portfolio [6].