Group 1: Value Factors - The report identifies four key value factors: Dividend Yield (DP), Book-to-Price Ratio (BP), Cash Flow-to-Price Ratio (CFP), and Earnings-to-Price Ratio (EP) as essential metrics for evaluating stock value [10][12][13] - The value factor scores are calculated using standardized Z-scores of the aforementioned metrics, with the final value factor score being the average of these Z-scores [12][13] - Different indices exhibit varying performances based on these value factors, with EP and DP being significant indicators in the CSI 300 and CSI 500 indices, while BP and SALES2EV show better performance in the CSI 1000 index [17][19] Group 2: Value Index - The report constructs three types of indices based on value metrics, including a high-value index, a high-value industry-neutral index, and an adjusted value index that considers different sector characteristics [33][34] - The high-value index is created by selecting stocks based on equal weighting of BP, EP, DP, and CFP, while the industry-neutral index adjusts these metrics to account for sector differences [33][34] - The performance of these indices indicates that value indices can outperform benchmark indices over the long term, although they may experience cyclical downturns [37]