Core Viewpoint - The article discusses the recent market fluctuations in A-shares and highlights the launch of BlackRock's CSI 500 Index Enhanced Fund, emphasizing the company's strategic shift towards systematic active equity investment using AI and alternative data to achieve differentiated excess returns in the Chinese market [1][5]. Group 1: Investment Strategy - BlackRock's Systematic Active Equities (SAE) strategy focuses on low correlation with traditional index strategies, aiming for stable excess returns without style drift or participation in crowded trades [1][2]. - The use of alternative data allows the research to capture market sentiment and subtle changes in company fundamentals beyond traditional financial statements [1][3]. - AI plays a crucial role in generating quantitative signals and dynamically weighting them to quickly adapt to market changes [2][3]. Group 2: Product Performance - The CSI 500 Index Enhanced Fund is positioned as a tool for investors during periods of rising market sentiment and risk appetite, with a higher systematic beta compared to the CSI 300 Index [3][4]. - The fund's performance since its inception has shown a net value growth rate that outperforms the benchmark index, with a low correlation of 0.27 with other similar products, demonstrating the effectiveness of its differentiated strategy [2][3]. Group 3: Market Outlook - The current valuation of the CSI 500 Index is considered reasonable, making it an attractive investment option amidst market fluctuations [5][6]. - The article suggests that recent market corrections are healthy and may provide good entry points for investors, as long as extreme volatility is avoided [5][6]. Group 4: Systematic Investment Era - BlackRock is transitioning its active equity business towards a systematic investment approach, which is rare in the domestic public fund industry [6][7]. - This shift aims to enhance portfolio stability and risk control, allowing for a more scientific concentration of holdings and better management of volatility and drawdowns [6][7].

Core Viewpoint - The article discusses the recent market fluctuations in A-shares and highlights the launch of BlackRock's CSI 500 Index Enhanced Fund, emphasizing the company's strategic shift towards systematic active equity investment using AI and alternative data to achieve differentiated excess returns in the Chinese market [1][5]. Group 1: Investment Strategy - BlackRock's Systematic Active Equities (SAE) strategy focuses on low correlation with excess returns, avoiding style drift and short-term crowded trades, aiming for stable and sustained performance over the long term [1][2]. - The use of alternative data allows the research to capture market sentiment and subtle changes in company fundamentals beyond traditional financial statements, while AI enhances the strategy by generating quantitative signals and dynamically weighting them [1][2][3]. Group 2: Product Performance - The BlackRock CSI 300 Index Enhanced A product, utilizing the SAE strategy, has shown strong performance since its inception, with a net value growth rate outperforming the benchmark index and a low correlation of 0.27 with other similar products [2]. - The SAE strategy's low correlation helps avoid pitfalls of short-term market crowding, contributing to the long-term stability of excess returns [2]. Group 3: Market Outlook - The CSI 500 Index is chosen for its higher systematic beta compared to the CSI 300 Index, making it suitable for investment during periods of rising market sentiment and risk appetite, while its valuation is more acceptable to investors [3][4]. - Current market fluctuations are viewed as healthy, with the potential for a better entry point for investors, as the A-share market remains a high-value asset class [4]. Group 4: Systematic Investment Transition - BlackRock is transitioning its active equity business towards systematic investment, which is a rare and bold move in the domestic public fund industry, aiming to enhance portfolio stability and risk control through systematic methods [5]. - The systematic investment approach will allow for a more scientific concentration of portfolios, increased stock diversification, and better control of volatility and drawdowns [5]. Group 5: Future Applications - The SAE strategy has the potential for further application in various scenarios, including industry, thematic, or Smart Beta indices, and could explore diverse strategies such as market-neutral approaches [6]. - The combination of stability and responsiveness to market changes is emphasized, aiming to help investors achieve reliable excess returns in the A-share market [6].

Core Viewpoint - BlackRock's Systematic Active Equity (SAE) strategy is increasingly playing a significant role in local investments in China, leveraging advanced data analysis techniques to enhance investment decision-making and performance [1][2]. Group 1: SAE Strategy Overview - As of June 2025, BlackRock's assets under management reached $12.5 trillion, making it one of the largest asset management companies globally [1]. - The SAE strategy utilizes machine learning and natural language processing to capture valuable investment signals, having evolved to its sixth generation language model with $336 billion in assets under management [1]. - The performance of BlackRock's funds utilizing the SAE strategy, such as the CSI 300 Index Enhanced A and the CSI 500 Index Enhanced A, has shown impressive net value growth rates of 18.35% and 18.02% respectively since their inception [1]. Group 2: Implementation and Team Structure - BlackRock plans to fully integrate the SAE strategy into its active equity investments, utilizing over 1,000 proprietary signals and alternative databases to enhance investment breadth and success rates [2]. - The SAE investment team consists of over 120 members with diverse backgrounds in fields such as accounting, engineering, economics, computer science, finance, and physics, including experience from tech companies and NASA [2]. Group 3: Local Adaptation and Machine Learning - The SAE strategy is being localized by deploying global models on China's vast data sets, continuously optimizing the approach based on local market conditions [3]. - The weight of machine learning signals in the SAE model has increased from 15% in 2019 to 30% currently, with expectations for further growth [3]. - The Augmented Investment Management (AIM) system dynamically adjusts and optimizes signal weights based on historical market conditions and fund performance, ensuring adaptability to market changes [3]. Group 4: Investment Strategy and Risk Management - The combination of AI-driven signals and the AIM tool enhances the intelligence, speed, and precision of investment processes [4]. - The SAE strategy focuses on individual stock selection while minimizing exposure to industry and style factors, allowing for a more stable alpha generation across hundreds of stocks [4]. - The systematic strategy aims to maximize excess returns while maintaining control over overall portfolio volatility, drawdown, and active risk [4].

Core Viewpoint - BlackRock views the Chinese market as a crucial growth engine within its global strategy, managing $12.5 trillion in assets and recognizing the significant scale and potential of the Chinese market [1][2]. Group 1: Business Development and Achievements - Since its establishment as a public fund management company in June 2021, BlackRock Fund has managed 16 public products with a total scale of approximately 15 billion yuan [2]. - The company has built stable relationships with channels, institutional clients, and partners, while also enhancing brand recognition in the Chinese public fund industry [2]. - BlackRock Fund has faced challenges such as longer decision-making processes compared to local institutions, but has improved governance structures and decision-making efficiency over the years [2][3]. Group 2: Localization Strategy - BlackRock's localization strategy focuses on talent, decision-making, and product development, achieving significant progress in these areas [3][4]. - The company has shifted from an "international" to a "localized" talent strategy, prioritizing professionals familiar with the Chinese market [3]. - Decision-making processes have been streamlined to enhance responsiveness to market changes, allowing for quicker product launches and strategy adjustments [3][4]. Group 3: Product Innovation and Focus - BlackRock Fund emphasizes diverse product offerings tailored to Chinese investors' needs, balancing absolute and relative returns [4][6]. - The company is launching innovative products such as the BlackRock China Bond Investment Preferred Green Bond Index Fund, addressing domestic green finance requirements [4]. - Future product development will focus on systematic investment, multi-asset management, and global asset allocation, including the reintroduction of QDLP products and preparations for QDII qualifications [7][8]. Group 4: Management Team Adjustments - Recent personnel changes, including the appointment of Yu Peihua as General Manager, are aimed at optimizing the organization and implementing strategic initiatives [5][6]. - The new management team is expected to enhance customer engagement and market expansion, leveraging local expertise to strengthen the fixed income platform [5][6]. Group 5: Systematic Investment Approach - BlackRock Fund is prioritizing systematic investment strategies, combining quantitative and fundamental stock selection to improve decision-making efficiency [8][9]. - The company is leveraging its Systematic Active Equity (SAE) platform, which has over 40 years of investment experience and utilizes AI technology for enhanced investment opportunities [8][9]. - This platform approach aims to provide stable long-term returns, aligning with the evolving preferences of Chinese investors for consistent performance [9][10]. Group 6: Global and Local Integration - BlackRock aims to integrate global expertise with local market needs, focusing on systematic investment and global asset allocation as key differentiators [10]. - The company emphasizes long-term investment strategies and responsible investing, reflecting its commitment to sustainable investment practices in the Chinese market [10].