Core Insights - Dushuquan (Beijing) Investment Management Co., Ltd. has been recognized as the "Most Institutional-Recognized Private Fund Company of the Year" at the "2025 Capital Market High-Quality Development Forum" due to its strong performance, mature investment system, and operational excellence [1] Performance Highlights - Dushuquan's products have shown exceptional performance in a complex market environment, generating long-term stable returns for institutional investors [2] - As of October 30, 2024, Dushuquan's Growth Phase I fund achieved a return of 53.3%, significantly outperforming the CSI 300 index, which rose by 17.9%, resulting in an excess return of 35 percentage points [2] - Over the past year and two years, Dushuquan's Growth Phase I fund recorded returns of 45.64% and 63.26%, respectively, with excess returns of 34 and 38 percentage points compared to the CSI 300 [2][3] Investment Strategy - The fund's returns are primarily driven by sectors such as new consumption and new energy, showcasing strong stock-picking capabilities [3] - Dushuquan has adapted its investment strategy by incorporating a top-down macro configuration framework to enhance its adaptability to market changes [4] Organizational Capability - Dushuquan emphasizes the importance of organizational capability in determining long-term competitiveness, focusing on team collaboration and talent development [4][5] - The firm has strengthened its research capabilities by integrating macroeconomic analysis into its decision-making framework and enhancing team collaboration for investment opportunities [4] Future Market Outlook - Dushuquan anticipates that the A-share market is entering a new phase, with the current level of the Shanghai Composite Index at 4000 points being more valuable than in the past [6][7] - The firm believes that the market's pricing logic is shifting from valuation-driven to fundamental-driven, with a focus on structural growth opportunities [7][8] Investment Focus - Dushuquan's investment strategy is centered around two main lines: emerging growth sectors such as AI technology innovation and energy infrastructure, and cyclical sectors benefiting from "anti-involution" policies [8]

Group 1: Market Sentiment and Positioning - Private equity firms in China are showing increasing optimism, with stock private equity institutions' average positions rising to the highest level of the year at 78.04% as of September 12, up 2.96 percentage points from the previous week [1] - The proportion of private equity firms with heavy or full positions (over 80%) has significantly increased to 60.02%, a rise of 5.81 percentage points week-on-week, while the proportion of firms with no positions has decreased to 5.08%, down 0.77 percentage points [1] - Different scales of private equity firms are maintaining high positions, with those managing over 10 billion yuan averaging 78.22%, and those between 5 billion to 10 billion yuan averaging 86.49%, the highest among all categories [1] Group 2: Performance and Market Trends - The top 100 subjective private equity firms have achieved an average return of 37.43% year-to-date, while the top quantitative firms have an average return of 26.69% [2] - The "Dai Shui Quan Growth Phase I" product from the leading private equity firm Dai Shui Quan has reported a return exceeding 50% [2] - The market is exhibiting a "slow bull" characteristic, with investor risk appetite remaining high, driven by liquidity, fundamentals, and external factors [2] Group 3: Sector Performance and Strategy - There is a clear market stratification, with significant gains in sectors like telecommunications, electronics, and non-ferrous metals, while coal and steel sectors have seen minimal increases [3] - The firm "Jia Gu Capital" emphasizes the importance of understanding one's capability circle and leveraging comparative advantages in familiar areas to maximize returns [3] - The firm suggests using industry ETFs or other tools to adjust investment allocations in response to macroeconomic changes, rather than strictly focusing on bottom-up stock selection [3]

Group 1 - The overall sentiment among private equity institutions remains optimistic despite market fluctuations, with stock private equity institutions' average positions reaching a year-to-date high of 78.04% as of September 12 [1] - The proportion of private equity institutions with heavy or full positions (over 80%) has significantly increased to 60.02%, up by 5.81 percentage points from the previous week, while the proportion of those with no positions has decreased to 5.08% [1] - Different scales of private equity institutions show high average positions, with large-scale institutions (over 10 billion) averaging 78.22%, and those between 5 billion to 10 billion averaging 86.49%, indicating a general trend of maintaining high positions across various sizes [1] Group 2 - The top 100 subjective private equity firms have achieved an average return of 37.43% year-to-date, while the top quantitative private equity firms have an average return of 26.69% [2] - The market is exhibiting a "slow bull" characteristic, with investor risk appetite remaining high, driven by liquidity, fundamentals, and external factors, leading to a shift from "certainty priority" to "growth priority" [2] - Emerging growth opportunities, such as new consumption, innovative pharmaceuticals, robotics, and AI hardware, are becoming significant market drivers, reflecting a renewed focus on fundamental growth rather than just certainty [2] Group 3 - Large private equity institutions, such as Jiangju Capital, observe a clear market stratification, with significant gains in sectors like telecommunications and electronics, while coal and steel sectors show minimal increases [3] - Jiangju Capital emphasizes the importance of understanding one's capability circle and leveraging comparative advantages in familiar areas to maximize expected returns [3] - The firm suggests using industry ETFs or other tools to adjust investment allocations in response to macroeconomic changes, rather than strictly adhering to bottom-up stock selection [3]

Core Viewpoint - The A-share and Hong Kong stock markets experienced a structural rally in the first half of 2025, driven by rising risk appetite and active capital seeking opportunities, leading to a comprehensive recovery in the performance of subjective long strategies in private equity funds [1][2]. Market Performance - As of June 30, 2025, stock strategy private equity funds achieved an average return of 10%, significantly outperforming the Shanghai Composite Index and the CSI 300 Index [1][3]. - The average daily trading volume of A-shares stabilized at 1.3 trillion yuan, marking a substantial increase compared to the same period last year [1]. - Major indices, including the Shanghai Composite Index, regained significant levels, with the Shanghai Composite Index surpassing 3,400 points, reaching a new high for the year [2]. Fund Performance - Approximately 80% of private equity securities products recorded positive returns in the first half of 2025, with an average return of 10% for 6,495 stock strategy products [3]. - Notable private equity firms like Dazhuo Investment and High Yi Asset saw significant recovery in their flagship products, with Dazhuo's flagship product achieving a nearly 18% increase over the past year, outperforming the CSI 300 Index by 11 percentage points [3][4]. Investment Strategies - Dazhuo Investment maintained a unique investment framework, focusing on new consumption opportunities, particularly in the context of rising female consumer power and the potential for overseas expansion [5][6]. - The technology sector saw a significant boost in confidence due to AI developments, with Dazhuo benefiting from early positioning in this area [5]. - The firm also strategically invested in cyclical assets, including electric equipment and automobiles, capitalizing on the "anti-involution" trend [5][6]. Future Outlook - Dazhuo Investment anticipates three main structural opportunities for the second half of 2025: the revaluation of quality Chinese assets, the global development of advantageous Chinese industries, and investment opportunities arising from breakthroughs in AI technology [6][7]. - In the new consumption sector, the focus will remain on emerging consumption trends and overseas expansion [7]. - The technology sector will continue to emphasize the AI supply chain and domestic substitution opportunities, while the automotive sector will focus on high-end and intelligent vehicles, particularly mid-to-high-end domestic brands [7].