1. Report Industry Investment Rating No information about the industry investment rating is provided in the document. 2. Core Viewpoints of the Report - Passive index fund scale remains stable, with the proportion of ETFs increasing. By the third quarter of 2025, the total asset scale of 2,823 non - monetary index funds reached 6.72 trillion yuan, an increase of 1.11 trillion yuan from the previous quarter. The scale of ETFs increased by about 1.24 trillion, and their proportion rose by over 6 percentage points [1]. - The gap between the top two index fund managers has narrowed. The top ten target indexes with the largest index fund scale account for 41.34% of the total, slightly down from the previous quarter. The top ten managers account for 69.65% of the index fund scale, with a slight increase in concentration [1]. - In terms of ETF holders, the institutional proportion of industry - themed products has increased, while that of Smart Beta has decreased. As of mid - 2025, the institutional holder proportion of all ETFs after penetrating the linked funds was 62.47%, up from the end of 2024 [1]. - The number and scale of newly issued products have risen. In the third quarter of 2025, 292 index funds were newly established, raising a total of 242.407 billion yuan, an increase in both number and scale compared to the previous quarter [1]. - The application for industry - themed products is stable. In the third quarter of 2025, 222 index funds were approved, slightly more than the previous quarter. Industry - themed index funds were the most approved type [1]. - In the third quarter, the better - performing ETF products were mainly concentrated in growth - related products, and Hong Kong - themed products had high trading activity [1]. 3. Summary According to the Table of Contents 3.1 2025 Third - Quarter Index Fund Market Scale Changes - The total asset scale of 2,823 non - monetary index funds reached 6.72 trillion yuan, an increase of 1.11 trillion yuan from the previous quarter. The scale of ETFs increased by about 1.24 trillion, and their proportion rose by 6.19 percentage points, mainly contributed by on - site trading [6][9]. - The proportion of domestic stock broad - based ETFs declined to 47%, while the proportion of industry - themed products rebounded to about 20% [9]. - The top ten target indexes with the largest index fund scale accounted for 41.34% of the total, slightly down from the previous quarter. The top three target indexes were the CSI 300 Index, CSI A500, and SSE 50 Index [17]. - The top ten index fund managers accounted for 69.65% of the total scale, with a slight increase in concentration. The top three were China Asset Management, E Fund Management, and Huatai - Peregrine Fund Management, and the gap between E Fund and China Asset Management narrowed to less than 20 billion yuan [18]. - In the third quarter of 2025, the top three fund managers with the largest increase in passive index fund scale were E Fund, China Asset Management, and Huatai - Peregrine Fund Management [21]. - Among industry - themed products, Cathay Securities ETF ranked first, and the scale of China AMC Hong Kong Stock Connect Internet ETF nearly doubled. The scale of short - term financing and convertible bond ETFs in bond products continued to rise, and the scale of many gold ETFs increased [24]. - In the second quarter of 2025, among 2,465 non - linked index products, 1,543 had positive scale growth. The top ten products with scale growth were mainly broad - based ETFs, while the products with the largest scale reduction were mainly off - site bond index funds [25]. 3.2 ETF Holder Changes - As of mid - 2025, the institutional holder proportion of all ETFs after penetrating the linked funds was 62.47%, up from the end of 2024. The institutional proportion of industry - themed and cross - border products increased significantly, while that of Smart Beta decreased [30]. - By index, the institutional proportion of broad - based indexes increased, the institutional proportion of the SSE STAR Market 50 Index increased to 34%, and the institutional proportion of the securities company index increased significantly, while that of dividend - related products decreased significantly [34]. - According to the top ten holders of ETFs in the 2025 semi - annual report, Central Huijin's holding amount continued to rise, and insurance funds maintained a high position. China Life's holding amount of ETFs continued to increase, and its proportion of industry - themed products increased while that of Smart Beta decreased [36][40]. 3.3 Third - Quarter Index Fund Raising and Application - In the third quarter of 2025, 292 index funds were newly established, raising a total of 242.407 billion yuan, an increase of 77% from the second quarter. The main source was domestic stock index funds, and the scale of newly established bond index funds also expanded significantly [43][47]. - Among newly established products, ETFs raised 119.657 billion yuan, ordinary index funds raised 89.175 billion yuan, and ETF link funds raised 33.576 billion yuan. Industry - themed funds, bonds, and Smart Beta were the three product types with the fastest - growing issuance volume this quarter [49]. - In the third quarter of 2025, 222 index funds were approved, slightly more than the previous quarter. Industry - themed index funds were the most approved type, with targets mainly including Hong Kong Stock Connect Healthcare, State - owned Enterprise Digital Economy, Hang Seng Technology, SSE STAR Market Artificial Intelligence, and CSI Robot Index [51]. 3.4 Third - Quarter ETF Market Performance - Among domestic stock broad - based ETFs, the top five products with the highest yields in the third quarter all tracked the STAR Market and ChiNext Innovation 50 Index. Among cross - border broad - based ETFs, the best - performing was the E Fund Hang Seng Hong Kong Stock Connect New Economy ETF, with a quarterly yield of 22.39%. Among industry - themed ETFs, the product with the highest quarterly yield was the Cathay CSI All - Share Communication Equipment ETF, with an interval yield of 84.04%. Among Smart Beta ETFs, the top - performing products were mainly related to ChiNext growth and STAR Market growth [53]. - Among domestic broad - based index funds, the top five products with the highest average daily trading volume in the third quarter were China AMC SSE STAR Market 50 ETF, China AMC CSI A500 ETF, E Fund ChiNext ETF, Huatai - Peregrine CSI 300 ETF, and Southern CSI A500 ETF, with an average daily trading volume of over 3 billion yuan. Among cross - border broad - based ETFs, the ones with high trading volume were mainly NASDAQ ETFs. Among industry - themed ETFs, the top five products with the highest trading volume were all Hong Kong - themed products. Among Smart Beta ETFs, three of the top five products with the highest trading volume were dividend - strategy ETFs, and two were free - cash - flow ETFs [55][56].

Report Title - "ETF Proportion Continues to Rise, Institutional Holding Ratio Remains Stable — Analysis of the First Quarter 2025 Index Fund Quarterly Report" [1] Report Industry Investment Rating - Not provided in the content Core Viewpoints - Passive index fund scale remains stable, with the proportion of ETFs increasing. As of Q4 2024, the total asset scale of 2,422 non - monetary index funds was 4.97 trillion yuan, with a slight increase of 0.03 trillion yuan from the previous quarter. In Q1, ETFs grew by about 0.14 trillion yuan, and their proportion increased by nearly 3% [3]. - The occupancy rate of CSI A500 approaches 5%. The top ten target indexes with the largest index fund scale account for 43.85% of the index fund scale, and the concentration has decreased. The top three target indexes are the SSE 50, CSI A500, and STAR 50 indexes [3]. - The institutional holding ratio of ETFs approaches 60%, and the holding scales of domestic securities firms and insurance companies have increased. As of the end of 2024, the institutional holding ratio of all ETFs in China after penetrating the connected funds was 59.39%, with little change from mid - 2024 [3]. - The number of newly issued funds has increased, but the scale has decreased. In Q1 2025, 179 index funds were newly established, raising a total of 136.62 billion yuan. Compared with the previous quarter, the number of issuances increased, but the scale decreased [3]. - The application and approval of various products have recovered. In Q1, broad - based index funds had the largest number of approvals, and the target indexes involved were relatively scattered [3]. - The performance of ETFs in Q1: The products with good performance were concentrated in Hong Kong stock technology and domestic growth - related products. Among the top five domestic broad - based index funds in terms of average daily trading volume, three were CSI A500 products [3]. Summary According to the Catalog 1. Market Scale Changes of Index Funds in Q1 2025 - As of Q1 2025, the total asset scale of 2,422 non - monetary index funds was 4.97 trillion yuan, with a slight increase of 0.03 trillion yuan from the previous quarter. The growth mainly came from on - exchange funds. The scale of ordinary open - end index funds decreased by more than 2 percentage points [8][11]. - Among the 3.65 - trillion - yuan ETFs, the proportion of domestic broad - based stocks slightly declined to 57%, and the proportion of industry - themed products increased by less than 1 percentage point. The scale of gold products increased by more than 3 billion yuan, and the scale of cross - border products also increased significantly [13]. - The top ten target indexes with the largest index fund scale accounted for 43.85% of the index fund scale, and the concentration decreased. The top three target indexes were the SSE 50, CSI A500, and STAR 50 indexes. The occupancy rate of CSI A500 approached 5% [19]. - The top ten index fund managers managed 67.9% of the index fund scale, with the concentration remaining stable. The top three were Huaxia Fund, E Fund, and Huatai - Peregrine Fund [20]. - In Q1 2025, the top three passive index funds with the largest scale increase were Fullgoal, GF, and ICBC Credit Suisse, and the scale increments mainly came from ETFs [23]. - The top ten index funds in terms of scale were all broad - based ETFs, including four SSE 300 ETFs with a scale of over 100 billion yuan [23]. - Among industry - themed products, China Merchants Baijiu still had the largest scale but continued to decline. The scale of Hong Kong - related products increased significantly in Q1. Among bond products, the scales of Fullgoal's policy financial bonds and Bosera's convertible bond ETF continued to grow [26]. 2. Changes in ETF Holders - As of the end of 2024, the institutional holding ratio of all ETFs in China after penetrating the connected funds was 59.39%, with little change from mid - 2024. The institutional holding ratio of industry - themed products further declined, and those of bond and commodity ETFs also decreased [32]. - Among stock products, the institutional holding ratio of broad - based funds remained basically stable, that of Smart Beta continued to rise, and that of industry products further declined. Among broad - based indexes, the institutional holding ratio of CSI 1000 exceeded 90%, and the overall institutional holding ratio of industry indexes further declined [35]. - According to the top ten holders disclosed in the 2024 annual report of ETFs, the holding amount of Central Huijin continued to rise, while domestic securities firms and insurance companies among other institutions increased their holdings, and overseas institutions decreased their holdings [38]. - Ping An and China Life continued to increase their holding amounts of ETFs. China Life's holding ratio of broad - based products continued to rise, and its holding of Smart Beta also increased in the second half of 2024 [39][41] 3. Fund - Raising and Application of Index Funds in Q1 - In Q1 2025, 179 index funds were newly established, raising a total of 136.62 billion yuan. Compared with the previous quarter, the number of issuances increased, but the fund - raising scale decreased by 36% [44]. - The newly established funds were mainly domestic stock index funds. There were 165 newly established stock index funds, raising a total of 95.926 billion yuan. The number increased, but the fund - raising scale shrank. The number of newly established enhanced index funds increased to 30, raising a total of 16.351 billion yuan [47]. - Fourteen bond index funds raised 40.694 billion yuan, a significant increase from the previous quarter [47]. - In terms of product form, ETFs raised 77.17 billion yuan, a significant increase from the previous quarter; ordinary index funds raised 50.778 billion yuan, a decrease; and ETF connections raised 8.672 billion yuan, a significant decline [50]. - In Q1 2025, 236 index funds were approved, slightly more than the previous quarter. Broad - based index funds had the largest number of approvals, followed by enhanced strategy funds. Managers were enthusiastic about applying for industry - themed and broad - based index funds related to technology and AI [52] 4. Performance of the ETF Market in Q1 - Among domestic stock ETFs, the top two products in terms of Q1 returns were broad - based index enhanced strategy ETFs. The product with the highest return was Huaxia SSE STAR Market 200 ETF, with a Q1 return of 18.40% [55]. - Among cross - border broad - based ETFs, E Fund Hang Seng Hong Kong - Stock Connect New Economy ETF performed the best, with a quarterly return of 23.70% [55]. - Among industry - themed ETFs, the product with the highest quarterly return was Yin Hua ICBC CSOP S&P China New Economy Sector ETF, with a return of 41.67% [56]. - Among Smart Beta ETFs, the top three products in terms of returns all tracked the SSE STAR Market Growth Index, with returns above 11% [56]. - Among domestic broad - based index funds, the top five products in terms of average daily trading volume in Q1 were Huaxia SSE STAR Market 50 ETF, Huatai - Peregrine SSE 300 ETF, Huaxia CSI A500 ETF, Guotai CSI A500 ETF, and Southern CSI A500 ETF, with an average daily trading volume of over 3 billion yuan [60].