1. Report Industry Investment Rating No information provided in the document. 2. Core Viewpoints of the Report - FOF fund scale continued to rise in Q4 2025, with the number increasing by 31 to 549 and the scale rising by 26.2% to 244.19 billion yuan. The issuance scale also significantly increased, with 43 funds issued and a total issuance scale of 45.246 billion yuan, a 592.7% increase from the previous quarter. [5][8][10] - In Q4 2025, 49% of FOF funds achieved positive returns, and bond - biased FOF funds performed relatively better. The median returns of bond - biased, balanced, and stock - biased FOF funds were - 1.38%, - 0.57%, and 0.30% respectively. [12] - FOF funds had different preferences in terms of holding funds. They focused on increasing positions in active equity funds in dividend, growth, and cyclical sectors; passive equity funds in gold, rare metals, and communication equipment sectors; fixed - income + funds such as Invesco Great Wall Jingyi Shuangli and Ruiyuan Wenyizengqiang 30 - day Holding; bond - type funds with short - duration strategies; and QDII funds, especially the Sino - Korean Semiconductor ETF. [5][3][4] 3. Summary According to Relevant Catalogs 3.1 FOF Fund Scale and Issuance - **Scale Change**: By the end of Q4 2025, the number of FOF funds increased by 31 to 549, and the scale rose by 26.2% to 244.19 billion yuan. The scales of ordinary FOF, target - date FOF, and target - risk FOF funds were 180.93 billion yuan, 25.55 billion yuan, and 37.71 billion yuan respectively, with increases of 38.1%, 0.1%, and 2.0% from the previous quarter. [5][8] - **Fund Issuance**: In Q4 2025, 43 FOF funds were issued, with an issuance scale of 45.246 billion yuan, a 592.7% increase from the previous quarter. Among them, 40 ordinary FOF funds and 3 target - risk FOF funds were issued, with issuance scales of 44.005 billion yuan and 12.41 billion yuan respectively. [10] 3.2 FOF Fund Performance - **Q4 Bond - Biased FOF Performance**: In Q4 2025, 49% of FOF funds achieved positive returns, and bond - biased FOF funds performed relatively better. The median returns of bond - biased, balanced, and stock - biased FOF funds were - 1.38%, - 0.57%, and 0.30% respectively. The proportions of funds with positive returns in stock - biased, balanced, and bond - biased FOF funds were 24%, 35%, and 72% respectively. [12] - **Top - Ten Performance Lists of Different Types of FOF Funds**: The top three bond - biased FOF funds in terms of returns were Tianhong Pension Target 2030 One - Year Holding, Guotai Ruiyue 3 - Month Holding, and Zhongtai Tianze Steady 6 - Month Holding, with returns of 2.92%, 1.80%, and 1.50% respectively in Q4 2025. The top three balanced FOF funds were Shangyin Hengrui Pension Target Date 2045 Three - Year Holding, Shenwan Hongyuan Xinyin Pension Target Date 2045 Five - Year Holding, and GF Pension 2050 Five - Year Holding, with returns of 3.28%, 2.60%, and 2.57% respectively. The top three stock - biased FOF funds were CSC Ruixuan 6 - Month Holding, Qianhai Kaiyuan Yize Fixed - Open, and E Fund Advantage Return, with returns of 6.41%, 4.37%, and 3.88% respectively. [13][15][17] 3.3 FOF Holding Fund Analysis - **Active Equity Funds**: FOF managers favored Fuguo Steady Growth, Bodao Jiuhang, and China Europe Dividend Premium. Compared with the previous quarter, the top three funds with the largest increase in the number of heavy - position holdings were China Europe Dividend Premium, Morgan Core Growth, and Invesco Great Wall Cyclical Selection. The top three funds with the largest increase in heavy - position shares were ICBC Selected Return, Changxin Jinli Trend, and Caitong Asset Management Advanced Manufacturing. [20][24][25] - **Passive Equity Funds**: FOF managers favored Winwin CSI Shanghai - Hong Kong - Shenzhen Gold Industry Stock ETF, Fullgoal CSI Hong Kong Stock Connect Internet ETF, and Guotai CSI All - Index Communication Equipment ETF. Compared with the previous quarter, the top three funds with the largest increase in the number of heavy - position holdings were Winwin CSI Shanghai - Hong Kong - Shenzhen Gold Industry Stock ETF, Harvest CSI Rare Metals Theme ETF, and Guotai CSI All - Index Communication Equipment ETF. The top three funds with the largest increase in heavy - position shares were Harvest CSI Rare Metals Theme ETF, ICBC National Securities Hong Kong Stock Connect Technology ETF, and Winwin CSI Shanghai - Hong Kong - Shenzhen Gold Industry Stock ETF. [27][30][32] - **Fixed - Income + Funds**: FOF managers favored Invesco Great Wall Jingyi Shuangli, Winwin Steady Enhancement, and Invesco Great Wall Jingsheng Shuangxi. Compared with the previous quarter, the top four funds with the largest increase in the number of heavy - position holdings were Invesco Great Wall Jingyi Shuangli, Dacheng Yuanfeng Duoli, Boshi Credit Bond, and E Fund Ruixin. The top three funds with the largest increase in heavy - position shares were Ruiyuan Wenyizengqiang 30 - day Holding, China Europe Fengli, and Dacheng Yuanfeng Duoli. [34][37][39] - **Bond - Type Funds**: FOF managers favored GF Pure Bond, Western Securities Huixiang, and Huatai Baoxing Zunhe. Compared with the previous quarter, the top three funds with the largest increase in the number of heavy - position holdings were GF Pure Bond, Changcheng Shengyu Pure Bond, and Guotai Runli Pure Bond. The top three funds with the largest increase in heavy - position shares were E Fund Anhe Medium - Short - Term Bond, GF Pure Bond, and Orient Tianyi. [40][44][45] - **QDII Funds**: FOF managers favored Fullgoal Global Bond RMB, Southern Asia US Dollar Bond A RMB, and Huaxia Hang Seng Technology ETF. Compared with the previous quarter, the top four funds with the largest increase in the number of heavy - position holdings were Huatai - Peregrine CSI Korea Exchange Sino - Korean Semiconductor ETF, Fullgoal Asia Income RMB, E Fund Global High - Quality Enterprises, and E Fund Medium - Short - Term US Dollar Bond A RMB. The top three funds with the largest increase in heavy - position shares were E Fund Medium - Short - Term US Dollar Bond A RMB, Huatai - Peregrine CSI Korea Exchange Sino - Korean Semiconductor ETF, and Haitong US Dollar Income RMB. [47][51][53]

Core Insights - The report discusses the adaptability of secondary bond funds in high volatility environments, emphasizing diverse strategies for selecting aggressive products [3][12]. - It highlights the importance of high allocation and growth styles in secondary bond funds, suggesting that funds with a weighted average stock PE above 30 times are classified as growth style funds [4][12]. - The report also notes the increasing investment in Hong Kong stocks by secondary bond funds, with a stock market value ratio reaching 11.21% in Q3 2025 [12]. Summary by Sections High Allocation Strategy - High allocation secondary bond funds typically maintain high positions, with an average convertible bond allocation exceeding 30% across 64 funds, including both conservative and aggressive styles [3][12]. - A three-dimensional selection system is recommended, focusing on high elasticity, favorable holding experience, and cost-effectiveness, evaluated through three core indicators and five sub-indicators [12]. Growth Style - Growth style funds are identified by their holding stocks with a PE ratio above 30, with evaluations based on holding experience and risk-return ratios, particularly the Sharpe ratio [4][12]. - The report emphasizes the need to consider industry rotation, portfolio construction methods, and the balance between growth and quality [4][12]. Hong Kong Stock Strategy - The report indicates a continuous increase in the proportion of Hong Kong stock investments within secondary bond funds, with specific funds maintaining stable positions in this market [12]. - It mentions that the investment limit for Hong Kong stocks is capped at 50% of the stock assets for products that can invest in Hong Kong stocks [12]. Tool-based Products - Tool-based products within secondary bond funds include strategies focused on innovation and micro-cap stocks, with specific funds targeting these areas [12]. - The report identifies representative products for micro-cap strategies and highlights the unique index-enhanced strategy products focused on innovation [12].

Core Insights - The report emphasizes the diverse strategies of secondary bond funds and the significant differences in their risk-return profiles, suggesting a focus on high-positioning and growth-oriented funds to capitalize on high-growth sectors [3][12] - It highlights the increasing investment in Hong Kong stocks by secondary bond funds, with the proportion reaching 11.21% of stock market value in Q3 2025, indicating a trend towards technology-driven assets [12] - The report outlines a three-dimensional selection system for high-elasticity products, focusing on high performance, good holding experience, and cost-effectiveness [12] Summary by Sections Secondary Bond Fund Strategies - The report identifies four main strategies for selecting secondary bond funds suitable for high volatility environments: high positioning, growth style, Hong Kong stock strategy, and tool-type products [3][12] - High-positioning funds typically have an average convertible bond position exceeding 30%, with 64 funds identified, ranging from conservative to aggressive styles [12] - Growth style funds are characterized by a weighted average PE ratio above 30, with evaluations based on holding experience and risk-return ratios [4][12] Hong Kong Stock Strategy - The report notes a continuous increase in the investment ratio of secondary bond funds in Hong Kong stocks, with specific funds maintaining stable positions [12] - It mentions that the investment limit for products that can invest in Hong Kong stocks is capped at 50% of their stock assets [12] Tool-Type Products - The report discusses the emergence of tool-type products within secondary bond funds, including strategies focused on innovation and micro-cap stocks [12] - It highlights specific funds that target dual innovation strategies and micro-cap stocks, indicating a growing trend in specialized investment approaches [12]

Group 1 - As of October 29, public fund reports for the third quarter have been fully disclosed, with bond funds experiencing over 500 billion units of net redemptions, marking the highest net redemption among fund types [1][2] - The total scale of bond funds at the end of the third quarter was 10.58 trillion yuan, a slight decrease from 10.82 trillion yuan at the end of the second quarter [2] - Over 55% of bond funds recorded net redemptions, with more than 2,100 funds experiencing this trend, including 292 funds with net redemptions exceeding 1 billion units [2] Group 2 - Despite the overall negative performance of bond funds, certain convertible bond funds achieved significant returns, with some exceeding 20% in yield due to favorable equity market conditions [1][5] - The yield of bond funds was under pressure, with over 3,128 bond funds yielding less than 1%, and more than 1,000 funds recording negative returns [4][5] - The yield on government bonds increased, with 1-year, 3-year, 5-year, and 10-year government bond yields rising by 12 basis points, 20 basis points, 22 basis points, and 35 basis points respectively compared to the end of the second quarter [4] Group 3 - Looking ahead, the bond market is expected to be influenced by both bullish and bearish factors, with the central bank's operations likely to support the market [6][7] - The current economic growth level remains weak, suggesting that long-term interest rates do not have a solid foundation for sustained and significant increases [6][7] - The bond market is anticipated to return to being driven by economic fundamentals and monetary policy after the release of pressure on the liability side [6][7]