1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - Since 2026, the trading logic of AI has shifted from "light - asset" sectors such as software and games to "physical" sectors like electricity, coal, and public utilities. The market's understanding of AI is moving from a technological narrative to infrastructure - constrained pricing [1]. - The HALO strategy, based on "heavy assets and low obsolescence rate," is used to screen ETFs. After screening, ETFs are divided into four levels: core HALO, enhanced HALO, neutral HALO, and non - HALO [1]. - Core HALO ETFs have a significantly better risk - return ratio. Since 2026, the Sharpe ratio and Calmar ratio of the equally weighted core HALO portfolio have reached 5.54 and 43.71 respectively, with a maximum drawdown of only 3.42%, significantly lower than other portfolios [2]. - In the future, attention should be paid to related targets such as coal, lithium batteries, steel, and building materials [2][3]. 3. Summary According to the Directory 3.1 HALO Strategy ETF Quantitative Screening: Mapping from Individual Stock Characteristics to ETFs - A quantitative framework is constructed to evaluate whether an ETF conforms to the HALO concept. First, evaluate the HALO characteristics of all A - share individual stocks, then calculate the HALO characteristics of ETFs based on their top ten heavy - weighted stocks, and finally form a comparable, rankable, and hierarchical HALO ETF screening result [18]. - The scoring process of the HALO strategy ETF can be summarized in six steps: building a basic sample pool, scoring individual stocks' HALO, extracting the top ten heavy - weighted stocks of ETFs as penetration samples, calculating the HALO characteristics of ETFs through individual stocks' HALO characteristics, performing coverage correction and sample cleaning, and sorting and stratifying ETFs [18][19][21]. - When scoring individual stocks, the H (heavy assets) factor mainly observes the proportion of fixed assets and capital expenditure to revenue and total assets, and the LO (low obsolescence rate) factor focuses on the proportion of annualized depreciation and goodwill in revenue and total assets, and introduces industry prior scores [27]. 3.2 Future Strategy: Focus on the Supplementary Rise Opportunities of Enhanced HALO - The top - ranked HALO ETFs are mainly of the "double - high" and "balanced" types, rather than being driven by a single factor of H or LO. The top - ranked core varieties (green power - related ETFs) have H scores above 90 and LO scores above 70 [31]. - The performance of the core HALO portfolio is the best. Since 2026, the cumulative net value of the equally weighted core HALO portfolio has led other portfolios, with a maximum drawdown of only 3.42%, significantly lower than other portfolios. Its Sharpe ratio and Calmar ratio are 5.54 and 43.71 respectively, with a much higher cost - performance [33]. - In terms of specific industries, coal still has investment value as the geopolitical situation in the Middle East has not substantially eased, and the demand for coal and coal chemical industry is expected to increase. In the enhanced HALO category, the lithium - battery sector has a small increase since the beginning of the year, with a relatively low congestion level, and is expected to have a supplementary rise. Steel and building materials sectors may benefit from anti - involution policies and still have allocation value [3][34][35].

1. Report Industry Investment Rating - The report does not mention the industry investment rating [8] 2. Core Viewpoints of the Report - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session, especially on March 23, when many products had a significant increase in volume at the end of the session [7][10] - After the market closed on March 23, the quantitative signals quickly strengthened, but there was differentiation among sectors. The technology sector had relatively weak signals [7] - In terms of style, the mid - cap blue - chip market is still favored, and the agriculture and manufacturing industries are optimistic, with a focus on the photovoltaic sector [7] 3. Summaries According to the Directory 3.1 3月23日主要宽基指数ETF成交量明显放大 - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session. On March 23, when the market had a significant adjustment, many ETFs showed significant volume increases after 14:45. For example, the trading volume of Huatai - Berries CSI 300ETF, Huaxia SSE 50ETF, Southern CSI 500ETF, and Southern CSI 1000ETF in the last 15 minutes accounted for 10.5%, 17.8%, 8.8%, and 15.9% of the whole - day trading volume respectively [10] 3.2 盘后量化模型信号迅速转强，市场有望迎来反弹 3.2.1 下跌后估值安全边际提升 - As of March 23, 2026, with the change in market sentiment, the price - to - earnings ratios of major A - share broad - based indexes have fallen back to a reasonable range. Compared with March 2, the valuation quantiles of major broad - based indexes have significantly decreased, and the market has become more rational. Currently, they are mostly in the 70 - 80 quantiles, providing a higher safety margin for equity assets [24] 3.2.2 3月23日盘后量化信号迅速转强 - **Broad - based index short - term signal strengthening**: The short - term signal of broad - based indexes has a good historical performance. On March 23, the quantitative signals of major broad - based indexes quickly strengthened after the market closed. Since 2026, the quantitative signals were strong in January, neutral in February, and weakened at the end of March. With the rapid decline of the market on March 23, the quantitative signals returned to the previous high level [30][35] - **Industry medium - term signal strengthening but sector differentiation**: The monthly medium - term signal of industry indexes also has an indicative effect. Similar to the performance of broad - based index signals, the quantitative signals indicating the industry strength in the next month also strengthened, but there was differentiation among sectors. The signals of value - based sectors were strong, while the expectations of the technology sector were still relatively weak, and the mid - cap blue - chip style is expected to continue to strengthen [38][40] 3.3 继续看好农业与制造，重点关注光伏板块 - Despite the high uncertainty in the external situation, the investment opportunities still focus on stocks with medium - risk characteristics, and the characteristics of mid - cap blue - chips will be further strengthened, with a focus on the cyclical and manufacturing sectors. In the context of the prominent global energy security requirements, the new energy industry (photovoltaic, wind power, power transmission) with global competitive advantages in China is the core main line of the manufacturing sector. The report lists relevant ETFs in the photovoltaic, power, and agricultural sectors for reference [46]

Core Viewpoint - The green power ETF Guotai (159669) has seen a more than 2.5% increase, indicating a steady development in the industry, supported by recent government policies aimed at establishing a unified national electricity market by 2030 and fully completing it by 2035 [1] Group 1: Policy Developments - The State Council's recent issuance of the "Implementation Opinions on Improving the National Unified Electricity Market System" outlines a "two-step" strategy for market development [1] - By 2030, the goal is to have all types of power sources and non-essential users directly participate in the electricity market [1] - The plan includes innovative measures such as transitioning from "individual pricing and trading" to "unified pricing and joint trading" across various market levels [1] Group 2: Market Dynamics - The policy aims to expand the scale of green electricity consumption and accelerate the establishment of a combined system of mandatory and voluntary green certificate consumption [1] - There is a scheduled introduction of various power sources, including gas, hydro, and nuclear power, into the electricity market [1] - The exploration of a system that reflects the low-carbon value of nuclear power is also part of the strategy [1] Group 3: Commodity Prices and Inventory - The spot price of thermal coal has increased month-on-month but decreased year-on-year [1] - Coal inventories at major ports have shown a decrease both month-on-month and year-on-year [1] Group 4: Investment Opportunities - The green power ETF Guotai (159669) tracks the green power index (399438), which reflects the overall performance of publicly listed companies in the clean energy generation sector [1] - The index covers sub-sectors such as hydropower, wind power, and photovoltaics, focusing on power companies with low-carbon attributes [1] - These companies typically exhibit strong anti-cyclicality and abundant cash flow, making them important investment tools for achieving "dual carbon" goals [1]

Core Viewpoint - The recent issuance of the "Implementation Opinions on Improving the National Unified Electricity Market System" aims to establish a unified electricity market in China, with significant implications for the green electricity sector, as evidenced by the rise of the Cathay Green Power ETF (159669) by over 2% on February 27 [1]. Group 1: Policy Developments - The strategy for building a national unified electricity market will be implemented in two phases: by 2030, a basic framework will be established, allowing all types of power sources and non-essential users to participate directly in the market; by 2035, the system will be fully operational [1]. - The "Implementation Opinions" propose several innovative measures, including transitioning from "individual pricing and trading" to "unified pricing and joint trading" across various market levels [1]. - The policy aims to expand the scale of green electricity consumption and accelerate the establishment of a dual system for mandatory and voluntary green certificate consumption [1]. Group 2: Market Implications - The Cathay Green Power ETF (159669) tracks the green power index (399438), which selects listed companies involved in clean energy generation, such as hydropower, wind power, and solar power, to reflect the overall performance of securities related to green electricity [1]. - The policy encourages a phased approach for integrating various energy sources, including gas, hydro, and nuclear power, into the electricity market, while exploring systems that reflect the low-carbon value of nuclear power [1].

Core Viewpoint - The renewable energy sector in China has achieved historic breakthroughs, with significant growth in renewable energy capacity and a shift towards new energy as the main power supply source [1] Group 1: Renewable Energy Development - In 2025, China's newly installed renewable energy capacity reached 452 million kilowatts, a year-on-year increase of 21%, accounting for 83% of the country's new power installations [1] - Cumulative installed capacity of wind and solar power has historically surpassed that of thermal power [1] Group 2: Energy Storage and Market Reform - By the end of December 2025, the cumulative installed capacity of energy storage projects in China increased by 54% year-on-year, with new energy storage capacity growing by 85% [1] - The top-level design for a unified national electricity market has been introduced, marking a new phase in the systematic promotion of electricity market reform [1] Group 3: Green Power ETF - The Green Power ETF (159669) tracks the Green Power Index (399438), which selects companies in the clean energy sector, including hydropower, wind power, and solar power [1] - The index is characterized by strong anti-cyclicality and abundant cash flow, making it an effective tool for investing in the "dual carbon" goals [1]

Group 1 - The core viewpoint of the article highlights the structural transformation occurring in the utility (electricity) industry, driven by ongoing market reforms and the transition to renewable energy sources [1] - The electricity market reform is progressing, leading to an improved pricing mechanism that is expected to provide a more reasonable return for the industry [1] - The rapid growth of renewable energy installations, primarily wind and solar, is significantly altering the power generation structure, while also increasing the demands on the electricity system's regulation capabilities and grid absorption [1] Group 2 - The current electricity supply and demand situation is described as being in a tight balance, with potential supply pressure in certain regions during peak electricity usage periods [1] - The Cathay Green Power ETF (159669) tracks the green power index (399438), which primarily covers clean energy generation sectors such as hydropower, wind power, and photovoltaics [1] - The index focuses on low-carbon electricity companies and aims to reflect the overall performance of publicly listed clean energy generation companies, characterized by strong anti-cyclicality and abundant cash flow, making it a suitable investment tool for the "dual carbon" goals [1]