Group 1: Report Information - The report is a "Industry Rotation TF Strategy Weekly Report" covering the period from March 9, 2026, to March 15, 2026, and was released on March 16, 2026 [1][2] Group 2: Strategy Basis - The Financial Street Securities Research Institute constructed a strategy portfolio based on industry and theme ETFs, referring to the strategy reports "Strategy Portfolio Report under Industry Rotation: Quantitative Analysis from the Perspective of Industry Style Continuity and Switching" (20241007) and "Research on the Overview and Allocation Methods of the Stock - type ETF Market: Taking the ETF Portfolio Based on the Industry Rotation Strategy as an Example" (20241013) [2] Group 3: Portfolio Adjustment - In the week of March 16, 2026, the model recommends allocating to sectors such as marine equipment, refining and trading, and aviation equipment. The strategy will newly hold products like Ship ETF, Oil and Gas ETF Huatong, Aerospace ETF, Energy ETF GF, and Resources ETF Boshi, and continue to hold Grid Equipment ETF [3][12] Group 4: Portfolio Details | Fund Code | ETF Name | ETF Market Value (billion yuan) | Holding Status | Shenwan Industry and Weight | Weekly Timing Signal | Daily Timing Signal | | --- | --- | --- | --- | --- | --- | --- | | 560710 | Ship ETF | 16.14 | Added | Marine Equipment (41.57%) | 1 | -1 | | 159309 | Oil and Gas ETF Huatong | 31.18 | Added | Refining and Trading (26.34%) | 1 | -1 | | 159227 | Aerospace ETF | 39.78 | Added | Aviation Equipment (55.27%) | 1 | -1 | | 159945 | Energy ETF GF | 1.37 | Added | Coal Mining (43.03%) | 1 | 1 | | 510410 | Resources ETF Boshi | 12.24 | Added | Industrial Metals (27.62%) | 1 | -1 | | 515210 | Steel ETF | 43.74 | Added | General Steel (56.87%) | 1 | 0 | | 517520 | Gold Stocks ETF | 156.96 | Added | Precious Metals (44.08%) | 1 | -1 | | 516910 | Logistics ETF Fullgoal | 1.35 | Added | Logistics (42.91%) | 1 | 1 | | 159326 | Grid Equipment ETF | 336.01 | Continued | Grid Equipment (77.17%) | 1 | 1 | | 562850 | Central - State - Owned Energy ETF Harvest | 2.90 | Added | Electricity (37.09%) | 1 | 1 | [3] Group 5: Performance Tracking - From March 9 to March 13, 2026, the cumulative net return of the strategy was approximately 2.18%, and the excess return relative to the CSI 300 ETF was approximately 1.97%. From October 14, 2024, to the present, the cumulative out - of - sample return of the strategy was approximately 38.39%, and the cumulative excess return relative to the CSI 300 ETF was approximately 14.68% [3] Group 6: Previous Week's Portfolio Changes | Fund Code | ETF Name | ETF Market Value (billion yuan) | Holding Status | One - week Return Rate (%) | | --- | --- | --- | --- | --- | | 159887 | Bank ETF | 1.41 | Removed | 4.48 | | 562550 | Green Electricity ETF | 8.30 | - | - | | 159933 | Financial Real Estate ETF SDIC UBS | 1.17 | Removed | -2.79 | | 159326 | Grid Equipment ETF | 336.01 | Continued | -0.11 | | 510060 | Central - State - Owned Enterprises ETF ICBC | 1.02 | Removed | - | | 515220 | Coal ETF | 105.34 | Removed | - | | 562900 | Agriculture ETF E Fund | 2.54 | Removed | 1.45 | | 560980 | Photovoltaic Leading Stocks ETF GF | 4.34 | - | 5.41 | | 510010 | 180 Governance ETF Bank of Communications | 2.52 | - | -0.71 | | 159790 | Carbon Neutrality ETF | 16.63 | Removed | - | | - | ETF Portfolio Average Return | - | - | 2.18 | | 510300 | CSI 300 ETF | 2057.19 | - | 0.21 | | - | ETF Portfolio Excess Return | - | - | 1.97 | [11] Group 7: Timing Signal Explanation - The timing signal is a price - volume indicator. A value of 1 indicates a bullish signal, 0 indicates a neutral signal, and - 1 indicates a bearish signal [3]

Core Viewpoint - The shipping industry is currently experiencing a new upcycle, with significant price increases and strong stock performance in the shipping sector, particularly in the shipping direction, which has risen by 27.7% this year [4][7]. Group 1: Industry Trends - The global tanker freight rates have surged to a nearly six-year high, with VLCC (Very Large Crude Carrier) spot market average daily earnings increasing by 24%, reaching the highest level since April 2020 [7]. - The shipping industry has been in a recovery cycle since 2021, characterized by a long-term cycle of approximately 15-20 years, with each upcycle lasting nearly 10 years [8]. - The aging fleet structure has initiated a wave of orders in shipbuilding, with a significant percentage of vessels over 15 years old: 42% for tankers, 26% for bulk carriers, 38% for container ships, and 38% for LNG carriers [9]. Group 2: Regulatory Impact - New environmental regulations from the International Maritime Organization (IMO) in 2023 are accelerating the replacement of high-energy-consuming old ships, leading to increased orders for LNG, methanol, and other dual-fuel or new energy vessels [10]. - By 2025, China's shipbuilding completion volume is expected to reach 53.69 million deadweight tons, a year-on-year increase of 11.4%, while new orders are projected at 107.82 million deadweight tons, accounting for 69% of the global total [10]. Group 3: Investment Opportunities - The first ETF focused on the shipbuilding theme was launched on December 19, 2025, tracking the CSI Shipbuilding Industry Index, with a fund size of 1.37 billion yuan and a growth of 12.5% since its listing [11]. - The CSI Shipbuilding Industry Index covers the entire shipbuilding industry chain, including leading manufacturers, design, core supporting equipment, and operational maintenance services [15]. - The top ten weighted stocks in the index account for 80% of the total weight, with significant contributions from companies like China Power and China Shipbuilding, which are expected to see substantial profit growth in 2025 [16][18]. Group 4: Performance Metrics - The cumulative return of the CSI Shipbuilding Industry Index since its base date (December 31, 2019) is 79%, with an annualized return of 10.2%, while the index has outperformed the CSI 300 Index over the past year [22][23]. - The index has shown strong performance metrics, with a one-year return of 44.5% compared to 18.9% for the CSI 300 Index [22][23].

Group 1 - The launch of the first domestic shipbuilding ETF (560710) enhances liquidity in the shipbuilding sector and covers core targets across the entire industry chain [1] - The current one-year charter rate for VLCC has risen to $92,500 per day, indicating a tight supply in the market and sustained high demand [1] - The shipbuilding sector is characterized by heavy asset nature and low technological obsolescence, making it a HALO asset class [1] Group 2 - A new round of capacity competition has begun in the container shipping industry, with shipping companies having sufficient cash reserves to increase capacity and market share [2] - The B2C model in container shipping creates user stickiness, making it essential for companies to increase capacity supply [2] - There is a significant disparity in shipbuilding orders among different shipping companies, indicating strong sustainability in future order demand [2] Group 3 - Second-hand ship prices have been rising continuously, with some types exceeding new ship prices, indicating a BACK structure in asset value [3] - The second-hand ship price index has increased for 12 consecutive months, reflecting tightening supply and demand in the market [3] - New ship prices have stabilized after a downward trend, with expectations of a return to an upward trajectory [3] Group 4 - Ship prices are expected to rise, leading to potential upward revisions in the long-term performance expectations of shipbuilding companies [4] - Chinese shipbuilding companies have significant order backlogs, with China Shipbuilding and China Shipbuilding Defense holding orders worth approximately $649 billion and $76 billion, respectively [4] - Current market valuations for these companies are at historically low levels, suggesting potential investment opportunities [4]

Investment Rating - The report indicates a positive investment outlook for the shipbuilding industry, highlighting the successful launch of the shipbuilding ETF and the overall high market demand for shipping services [4][9]. Core Insights - The shipping industry is experiencing a sustained increase in demand, with the successful launch of the shipbuilding ETF (560710) enhancing liquidity in the sector [4][10]. - VLCC (Very Large Crude Carrier) charter rates are approaching $100,000 per day, indicating strong market conditions that are likely to benefit upstream shipbuilding [4][39]. - The container shipping sector is entering a new phase of capacity competition, with shipping companies underestimating future order contributions [4][46]. - Second-hand ship prices are on the rise, with some asset values indicating a backwardation structure, while newbuilding prices show signs of stabilization and potential upward movement [4][51]. - The report emphasizes the potential for ship prices to increase, suggesting that shipbuilding companies may see upward revisions in their long-term performance expectations [4][56]. Summary by Sections 1. Core Changes in the Shipbuilding Sector - The shipbuilding ETF (560710) has been launched, marking the first ETF focused on the shipbuilding industry in China, which enhances sector liquidity [7][10]. - The ETF tracks the China Securities Index, which has outperformed the CSI 300 index by 37% over the past three years [9][10]. 2. Shipbuilding Market Volume and Price Updates - As of January 2026, the newbuilding price index was 184.29 points, reflecting a month-on-month decrease of 0.19%, while the second-hand price index was 195.96 points, showing a month-on-month increase of 2.56% [62][65]. - The global shipbuilding order book has increased by 5% month-on-month, with container ships, oil tankers, and bulk carriers showing significant order volumes [62]. 3. Major Shipyard Order Analysis - The report highlights that major shipyards are experiencing a surge in orders, with companies like China Shipbuilding and China State Shipbuilding holding substantial order backlogs [20][21]. - The report notes that the delivery of high-value contracts is expected to accelerate, leading to increased profitability for these shipyards [20][21].

Core Insights - The Chinese shipbuilding industry is experiencing growth, with a completion volume of 38.53 million deadweight tons from January to September 2025, representing a year-on-year increase of 6.0% [1] - As of the end of September, the hand-held order volume reached 242.24 million deadweight tons, marking a year-on-year growth of 25.3% [1] - The three major indicators of China's shipbuilding industry accounted for 53.8%, 67.3%, and 65.2% of the global total, maintaining a leading position worldwide [1] Industry Overview - The shipbuilding ETF (Fund Code: 560710, Subscription Code: 560713) is the first index fund focused on shipbuilding, tracking the CSI Smart Shipbuilding Industry Index, which includes 40 representative listed companies in shipbuilding-related fields [2] - The top three weighted sectors in the index are Marine Equipment III (45.06%), Other Power Equipment III (13.62%), and Energy Heavy Equipment III (9.52%), providing a comprehensive capture of the industry ecosystem [2] - The index heavily focuses on core assets, with companies under the China Shipbuilding Group accounting for 56% of the index, indicating strong coverage of industry leaders [2] Market Dynamics - The shipbuilding industry is in an upward trajectory due to multiple favorable factors, including global economic recovery, increased shipping demand, and urgent replacement needs due to an aging global fleet [2] - The industry has entered a new long-cycle starting point, supported by policies promoting "renewal and replacement," leading to sustained upward momentum in market conditions [2] - The CSI Smart Shipbuilding Industry Index has shown strong historical performance, with a growth of 56.70% since its base date (December 31, 2019), outperforming traditional shipbuilding indices and the CSI 300 Index [2] Fund Management - The shipbuilding ETF will be managed by experienced fund manager Su Huaqing, who has 7 years of experience in the securities industry [3] - The fund benefits from the quantitative research capabilities of the established investment team at the fund company, which has been active since 2009 [3] - The launch of the shipbuilding ETF aligns with national strategies for marine economic development and aims to attract social capital into sustainable marine sectors [3]

Core Insights - The ETF market is expected to be a prominent area for growth in the public fund industry, with a total scale projected to exceed 6 trillion yuan by the end of 2025, marking an increase of 2.29 trillion yuan from the previous year [2][3] Group 1: Market Growth and Trends - By the end of 2025, the total scale of ETFs reached 6.02 trillion yuan, with 128 ETFs exceeding 10 billion yuan in size, and 17 surpassing 50 billion yuan [2] - The rapid growth of ETFs is closely linked to policy support, including the China Securities Regulatory Commission's initiatives to enhance the index fund product system and promote innovation [2][3] - The increasing market activity and investor confidence are driving the growth of ETFs, as they offer lower fees and easier access compared to direct stock investments [3] Group 2: Competitive Landscape - The ETF market is characterized by intense competition, with new products being launched continuously, including sector-specific ETFs [4][5] - As of January 5, 2026, there were 1,402 ETFs established, with a notable concentration of assets in a few leading products, indicating a significant head effect [4][5] - Major fund companies dominate the market, with 16 fund managers having ETF scales exceeding 100 billion yuan, collectively accounting for nearly 90% of the total ETF scale [7] Group 3: Future Outlook - Analysts predict that the demand for stable and transparent returns will continue to grow, leading to a shift in ETFs from trading tools to fundamental investment vehicles [8] - The introduction of innovative ETF products, such as equity-bond constant ETFs and strategy ETFs, is expected to attract more long-term capital into the market [8]

Core Viewpoint - The launch of China's first ETF focused on the shipbuilding industry, the Zhongzheng Smart Shipbuilding Industry Index Fund, is seen as a significant step towards integrating the shipbuilding sector with capital markets, aligning with national strategies for high-quality marine economic development and the construction of a maritime power [1][2][8]. Group 1: Product Launch and Significance - The Zhongzheng Smart Shipbuilding Industry Index Fund will officially start issuing on January 12, 2026, marking the first index fund dedicated to the shipbuilding industry in China [1]. - The fund aims to connect the industrial landscape of key national sectors with the investment needs of capital markets through standardized index tools [2][5]. - The launch is positioned within the context of the 14th Five-Year Plan's conclusion and the beginning of the 15th Five-Year Plan, emphasizing the importance of financial product innovation in supporting the shipbuilding industry's high-quality development [5][8]. Group 2: Industry Perspective - The shipbuilding industry is identified as a strategic and foundational sector crucial for building a manufacturing, transportation, maritime, and technological power, currently experiencing historic development opportunities [2][3]. - The fund's introduction is expected to provide a clear path for capital participation in national key sector construction, enhancing the connection between industry development and capital allocation [3][8]. Group 3: Index Design and Performance - The Zhongzheng Smart Shipbuilding Industry Index is designed to reflect the entire shipbuilding industry's ecosystem, including upstream and downstream quality enterprises, aiming to capture the overall economic conditions and value changes within the sector [6][7]. - Since its base date of December 31, 2019, the index has increased by 43.44%, outperforming traditional shipbuilding indices and the CSI 300, indicating strong profitability and dividend stability [6][7]. Group 4: Strategic Collaboration and Future Outlook - The collaboration between China Shipbuilding Group and Fortune Fund represents a new model of "state-owned enterprise-fund," integrating industrial capital resources with public fund investment capabilities [5][8]. - This partnership is expected to enhance the influence and value recognition of the shipbuilding industry in capital markets, while also providing a replicable model for future projects combining industry and finance [5][9]. - Looking ahead, both parties plan to deepen strategic cooperation, focusing on long-term development opportunities in the marine economy and high-end equipment manufacturing [8][9].

Core Viewpoint - The launch of the first shipbuilding-themed ETF in China, the China Securities Intelligent Selection Shipbuilding Industry Index Fund, is seen as a significant step towards integrating the shipbuilding industry with capital markets, aligning with national strategies for high-quality marine economic development and the construction of a maritime power [2][6][9]. Group 1: Launch and Significance - The shipbuilding ETF, based on the China Securities Intelligent Selection Shipbuilding Industry Index, will officially start issuing on January 12, 2026, marking the first of its kind in the market [2][4]. - The product aims to connect the national strategic needs with capital market investment demands through standardized index tools, enhancing the financial product innovation in service of modern industrial system construction [2][4][6]. Group 2: Industry Perspective - The shipbuilding industry is identified as a strategic and foundational sector crucial for building a manufacturing, transportation, marine, and technological power, currently experiencing historic development opportunities [3][4]. - The ETF's launch is expected to establish a direct and broad connection between the shipbuilding industry's value and capital market investors through standardized and transparent financial products [3][6]. Group 3: Index Design and Performance - The China Securities Intelligent Selection Shipbuilding Industry Index is designed to reflect the entire shipbuilding ecosystem, including upstream and downstream quality enterprises, aiming to capture the overall industry dynamics and value changes [7][8]. - Since its base date of December 31, 2019, the index has achieved a growth rate of 43.44%, outperforming traditional shipbuilding indices and the CSI 300, indicating strong profitability with a net asset return rate of 8.23% for the first three quarters of 2025 [7][8]. Group 4: Future Outlook and Collaboration - The collaboration between China Shipbuilding Group and Fortune Fund represents a new model of "state-owned enterprise-fund," integrating industrial capital resources with public fund investment capabilities, enhancing the shipbuilding industry's influence in capital markets [6][9]. - The ETF is positioned to provide a transparent and efficient investment vehicle for investors to share in the long-term benefits of the shipbuilding industry and marine economic development, while also supporting the industry's technological innovation and green transformation [9][10].

Core Viewpoint - The launch of the first shipbuilding-themed ETF in China marks a significant innovation in financial products, aiming to connect capital markets with the shipbuilding industry and support the construction of a modern industrial system [1][5]. Group 1: Launch Event - The product launch event for the China Securities Index Selected Shipbuilding Industry Index Fund was held in Shanghai, themed "Set Sail on a New Journey, Together We Paint the Ocean Dream" [1][4]. - Representatives from various organizations, including China Shipbuilding Group and several financial institutions, attended the event to witness the launch of the ETF [1][4]. Group 2: Industry Insights - The shipbuilding industry is recognized as a strategic and foundational sector for building a strong manufacturing, transportation, marine, and technological nation, currently facing historic development opportunities [5][6]. - The ETF is designed to provide a clear path for capital to participate in key national projects, enhancing the connection between the shipbuilding industry's value and capital market investors [5][6]. Group 3: Financial Product Features - The ETF aims to capture industry development trends and market investment needs, offering investors a quality tool to share in the growth of the shipbuilding industry [2][5]. - The index tracked by the ETF transforms the growth value of the shipbuilding industry into an investable financial product, facilitating the conversion of "industry advantages" into "investment opportunities" [2][5]. Group 4: Strategic Importance - The ETF aligns with national strategies for marine economic development and aims to build a competitive blue financial service system, directing social capital towards sustainable marine sectors [3][7]. - The innovative "central enterprise-fund" linkage model integrates the business advantages of state-owned enterprises with the professional investment capabilities of public funds, filling a gap in standardized investment tools for this niche market [7]. Group 5: Future Prospects - Future collaboration between the fund and China Shipbuilding Group will focus on long-term development opportunities in the marine economy and high-end equipment manufacturing, exploring innovative paths for industry-finance integration [3][7].

Group 1 - The launch of the first domestic index fund focused on the shipbuilding industry, in collaboration with leading companies like China Shipbuilding Group and China Securities Index Company, represents an innovation in financial products and aims to provide a clear path for capital to participate in key national development areas [1][4] - The shipbuilding industry is identified as a strategic and foundational sector for building a strong manufacturing, transportation, marine, and technological nation, currently experiencing historic development opportunities [1][3] - The shipbuilding ETF is designed to connect the value of the shipbuilding industry with capital market investors through standardized and transparent financial products, marking a significant step in integrating the industry with capital markets [1][2] Group 2 - The shipbuilding ETF, as the first of its kind in the market, aligns with national strategies for marine economic development and aims to build a competitive blue financial service system, guiding social capital towards sustainable marine sectors [2][3] - The ETF employs a "central enterprise - fund" cooperation model, merging the resource advantages of industrial capital with the professional investment capabilities of public funds, thereby filling the gap for standardized investment tools in this niche market [3] - Future plans include deepening strategic collaboration between the fund and China Shipbuilding Group, focusing on long-term development opportunities in the marine economy and high-end equipment manufacturing, while exploring innovative paths for industry-finance integration [5]