Group 1 - The AI application sector is experiencing a downward adjustment, with the CSI Software Service Index dropping by 1.34% as of November 20, 2025 [1] - Google has launched its latest AI model, Gemini 3, achieving a top ELO rating of 1501 and a 37.5% accuracy rate in a significant academic test [1] - Huawei is set to announce a breakthrough technology in AI on November 21, which could increase computing resource utilization from the industry average of 30%-40% to around 70% [1] - Leading internet companies are heavily investing in AI development, indicating a potential boom in the domestic computing power industry chain [1] Group 2 - As of October 31, 2025, the top ten weighted stocks in the CSI Software Service Index account for 63.09% of the index, with notable companies including iFlytek and Kingsoft [2] - The Software ETF (159852) tracks the CSI Software Service Index, providing an accessible investment tool for the computer software industry [2] Group 3 - Investors can also consider the Software ETF linked fund (012620) to capitalize on AI software investment opportunities [3]

Core Insights - The software ETF has shown significant trading activity with an intraday turnover of 3.03% and a transaction volume of 165 million yuan, leading in average daily trading volume over the past month at 537 million yuan [3] - The latest scale of the software ETF reached 5.432 billion yuan, also ranking first among comparable funds [3] - Despite a recent net outflow of 4.5123 million yuan, the software ETF has attracted a total of 724 million yuan over the past 21 trading days [3] - Over the past three years, the net value of the software ETF has increased by 5.55%, with a maximum monthly return of 39.35% since inception [3] - The current international environment has elevated the strategic importance of domestic industrial software, particularly in the EDA sector, as U.S. restrictions accelerate the push for domestic alternatives [3][4] - The Ministry of Industry and Information Technology has set a clear target for the industry, aiming to complete the update of approximately 2 million sets of industrial software by 2027, providing strong support for industry development [3] Industry Trends - Since 2018, U.S. technology blockades have intensified the urgency for domestic industrial software independence, particularly in EDA and other R&D design products [4] - The policy environment is increasingly supportive, with the Ministry of Industry and Information Technology outlining industrial software update goals for 2024 and the National Development and Reform Commission including industrial software in the "two new" policy support framework for 2025 [4] - The industry is expected to experience rapid growth driven by both domestic production and intelligent technology advancements [4] Key Stocks - The top ten weighted stocks in the CSI Software Service Index as of October 31, 2025, include iFlytek, Kingsoft Office, and Tonghuashun, collectively accounting for 63.09% of the index [4] - The individual weightings of key stocks are as follows: iFlytek (13.80%), Tonghuashun (8.49%), Kingsoft Office (7.78%), and others [6]

Group 1: Liquidity and Scale of Software ETF - The software ETF had an intraday turnover of 6.26% and a transaction volume of 366 million yuan [1] - Over the past month, the software ETF's average daily transaction volume reached 569 million yuan, ranking first among comparable funds [1] - In the past week, the software ETF's scale increased by 19.89 million yuan, also ranking first among comparable funds [1] - Over the last 17 trading days, the software ETF attracted a total of 827 million yuan in inflows [1] Group 2: Performance and Returns - As of October 31, the software ETF's net value has increased by 10.46% over the past three years [1] - The highest monthly return since inception was 39.35%, with the longest consecutive monthly gains being three months and the longest cumulative gain reaching 69.40% [1] - The average return during the months of increase was 10.06% [1] Group 3: Policy and Industry Outlook - The 20th Central Committee's Fourth Plenary Session emphasized high-level technological self-reliance as a key development goal [1] - In the context of major power technology competition, the trend towards domestic core software and hardware is expected to accelerate [1] - The "Suggestions" highlight the need for "extraordinary measures" to promote breakthroughs in key areas such as integrated circuits and foundational software [1] - Collaborative innovation between emerging technologies and foundational software is anticipated to be a significant driver of high-quality technological development during the 14th Five-Year Plan period [1] Group 4: Major Stocks in Software Service Index - As of October 31, 2025, the top ten weighted stocks in the CSI Software Service Index include iFlytek, Kingsoft Office, and Tonghuashun, collectively accounting for 63.09% of the index [2] - The weightings of the top stocks are as follows: iFlytek (13.80%), Tonghuashun (8.49%), Kingsoft Office (7.78%), and others [4] - Investors can also access AI software investment opportunities through the software ETF linked fund (012620) [4]

Group 1: ETF Performance and Market Trends - The software ETF experienced a turnover of 7.16% during trading, with a transaction volume of 410 million yuan [3] - Over the past month, the software ETF's scale increased by 615 million yuan, indicating significant growth [3] - In the last 16 trading days, the software ETF attracted a total of 831 million yuan in inflows [3] - As of October 30, the software ETF's net value has risen by 12.61% over the past three years [3] - The highest monthly return since inception was 39.35%, with the longest consecutive monthly gains being three months and a maximum increase of 69.40% [3] - The average return during the months of increase was 10.06% [3] Group 2: Software Industry Performance - According to the Ministry of Industry and Information Technology, the software and information technology service industry in China showed a positive performance in the first three quarters of 2025, with software business revenue reaching 1111.26 billion yuan, a year-on-year increase of 13.0% [3] - The total profit of the software industry was 143.52 billion yuan, reflecting a year-on-year growth of 8.7% [3] - Software business exports amounted to 45.94 billion USD, marking a year-on-year increase of 6.6% [3] - Software product revenue maintained stable growth, reaching 238.54 billion yuan in the first three quarters, a year-on-year increase of 10.9%, accounting for 21.5% of the total industry revenue [3] - Basic software product revenue was 13.83 billion yuan, up 11.2% year-on-year, while industrial software product revenue was 23.59 billion yuan, reflecting a 9.8% increase [3] Group 3: Future Outlook and Investment Opportunities - Longjiang Securities noted that in the context of intensified Sino-U.S. technology competition, achieving complete autonomy in key areas is essential for China's technological development [4] - The domestic software systems have gradually developed innovative capabilities, transitioning from "usable" to "user-friendly" [4] - As key policy assessment years (such as 2025 and 2027) approach, the domestic chip and operating system industries related to the Xinchuang industry are expected to benefit [4] - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index included companies like iFLYTEK, Tonghuashun, and Kingsoft Office, collectively accounting for 62.41% of the index [4] - Investors can also consider the software ETF linked fund (012620) to capitalize on AI software investment opportunities [4]

Core Insights - The software service index in China has shown a strong upward trend, with a notable increase of 2.19% as of October 28, 2025, driven by significant gains in key stocks such as Kingsoft Office, which rose by 8.77% [1][3] - The software ETF has experienced a cumulative increase of 3.28% over the past week, indicating a robust performance in the sector [1][3] Market Performance - The software ETF recorded a turnover rate of 7.77% and a transaction volume of 4.51 billion yuan, reflecting active trading [3] - Over the past two weeks, the software ETF's scale has increased by 92.39 million yuan, with a notable growth in shares by 76 million [3] - The latest net inflow of funds into the software ETF was 11.84 million yuan, with a total of 112 million yuan attracted over the last ten trading days [3] Growth Projections - By 2027, the market size driven by domestic substitution in government procurement is expected to reach 1.2 trillion yuan, with a compound annual growth rate of approximately 18% [3][4] - The Chinese operating system market is projected to reach 25 billion yuan by 2025, while the database market is expected to grow to 51.2 billion yuan [4] Industry Developments - The domestic computing ecosystem is continuously improving, with companies like Cambrian optimizing AI model compatibility and reducing costs in long-sequence scenarios [4] - The market share of domestic CAD software manufacturers has risen to 27%, and breakthroughs have been made in EDA tools for circuit design [4] Key Stocks - The top ten weighted stocks in the software service index account for 62.41% of the index, with notable performers including iFlytek, Tonghuashun, and Kingsoft Office [4][6] - The performance of key stocks includes iFlytek at 2.33%, Tonghuashun at 3.65%, and Kingsoft Office at 8.77%, indicating strong market interest [6]

Group 1: Software ETF Performance - The software ETF has a turnover rate of 4.16% and a transaction volume of 238 million yuan, with a total scale of 5.677 billion yuan, ranking first among comparable funds [3] - The software ETF experienced a net outflow of 54.0446 million yuan recently, but over the past 10 trading days, it has attracted a total of 417 million yuan [3] - As of October 24, 2025, the software ETF's net value has increased by 14.66% over the past three years, with the highest monthly return since inception being 39.35% and an average monthly return of 10.06% [3] Group 2: Key Holdings in Software Sector - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index (930601) include iFlytek, Tonghuashun, Kingsoft Office, and others, accounting for a total of 62.41% of the index [3] Group 3: Industry Trends and Developments - The domestic operating system market is expected to reach 25 billion yuan by 2025, with significant growth in domestic IDE tools, such as SnapDevelop, which has attracted over 20,000 registered users [4] - The core industrial software market in China is projected to grow from 31.86 billion yuan in 2024 to 76.5 billion yuan by 2029, with a compound annual growth rate of approximately 19.1% [4] - The development of the domestic software industry is accelerating due to the national push for localization in the context of major technological competition [4]

Group 1: Software ETF Performance - The Software ETF has a turnover of 3% during trading, with a transaction volume of 1.69 billion yuan [3] - Over the past month, the Software ETF has an average daily transaction volume of 604 million yuan, ranking first among comparable funds [3] - In the last two weeks, the Software ETF's scale increased by 410 million yuan, achieving significant growth and ranking first in new scale among comparable funds [3] - In the last 10 trading days, there were net inflows of funds for 7 days, totaling 1.017 billion yuan [3] - As of October 22, 2025, the net value of the Software ETF has increased by 12.43% over the past three years [3] - The highest monthly return since inception was 39.35%, with the longest consecutive monthly gains being 3 months and a maximum increase of 69.40% [3] - The average return during the months of increase is 10.06% [3] Group 2: Key Holdings and Market Insights - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index include iFlytek, Tonghuashun, Kingsoft Office, and others, accounting for a total of 62.41% [3] - Huatai Securities indicates that the AI application ecosystem is becoming increasingly complete, with rapid penetration of large model technology in finance, healthcare, and education [3] - The commercialization process of AI is exceeding market expectations, supported by increased policy backing and accelerated domestic computing power construction [3] - Key enterprises in the AI industry chain are expected to continue benefiting, with investment opportunities in computing infrastructure and AI application software [3] Group 3: Manufacturing Sector Insights - CITIC Construction Investment believes that China's manufacturing sector has largely achieved its 2025 phase goals and will continue to develop towards a medium-level position in the global manufacturing power by 2035 [4] - The industrial sector has become a core driver of GDP growth, with high prosperity in equipment manufacturing, high-tech manufacturing, and digital products [4] - As manufacturing PMI continues to improve and industrial AI accelerates, the importance of technological self-reliance is highlighted against the backdrop of increased US tariffs and software export restrictions [4] - Key areas such as CAD, CAE, and industrial operating systems are expected to see continuous breakthroughs [4] - Investors can also consider the Software ETF linked fund (012620) to capitalize on AI software investment opportunities [4]

Group 1: Software ETF Performance - The software ETF experienced a turnover of 4.63% during trading, with a transaction volume of 267 million yuan [3] - Over the past week, the software ETF's scale increased by 77.65 million yuan, ranking first among comparable funds [3] - The software ETF's share increased by 266 million shares in the past week, also ranking first among comparable funds [3] - The latest net inflow of funds into the software ETF was 60.54 million yuan, with a total of 281 million yuan net inflow over four out of the last five trading days [3] - As of October 20, the software ETF's net value has risen by 14.41% over the past three years [3] - The highest monthly return since inception was 39.35%, with the longest consecutive monthly increase being three months and a maximum increase of 69.40% [3] - The average return during the months of increase was 10.06% [3] Group 2: Industry Insights and Opportunities - The current external environment has increased policy risks and uncertainties, highlighting the urgency for China's technological self-reliance, which may accelerate the domestic substitution process [4] - From January to August 2025, China's software business revenue grew by 12.6%, indicating steady industry growth [4] - Policy initiatives are pushing for the establishment of a unified AI model service platform in the government sector, promoting resource consolidation [4] - In the domestic innovation sector, focus is recommended on competitive segments such as basic hardware, basic software (databases, operating systems, middleware), and application software [4] - In the industrial software sector, attention should be directed towards core areas such as product design, production control, and business management, including EDA, CAD, CAE, and CAM [4] - Investors can consider the software ETF linked fund (012620) to capitalize on AI software investment opportunities [4]

Group 1: Software ETF Performance - The Software ETF has a turnover rate of 4.42% and a transaction volume of 253 million yuan, ranking first among comparable funds as of October 17 [3] - The latest scale of the Software ETF reached 5.642 billion yuan, also ranking first among comparable funds [3] - Over the past five trading days, there were net inflows on four days, totaling 537 million yuan, with an average daily net inflow of 107 million yuan [3] - The net value of the Software ETF has increased by 13.21% over the past three years [3] - Since its inception, the Software ETF has recorded a highest monthly return of 39.35%, with the longest consecutive monthly gains being three months and a maximum increase of 69.40% [3] - The average return during the months of increase is 10.06% [3] Group 2: Key Holdings in Software Sector - As of September 30, 2025, the top ten weighted stocks in the CSI Software Service Index include iFlytek, Tonghuashun, Kingsoft Office, Zhinan Zhen, Hengsheng Electronics, Runhe Software, 360, Tuo Wei Information, Yonyou Network, and Deepin Technology, collectively accounting for 62.41% of the index [3] Group 3: Market Trends and Opportunities - Microsoft announced that Windows 11 23H2 Home and Professional editions will stop receiving security updates on November 11, 2025, affecting over 500 million users globally [3] - In the context of Microsoft's service contraction, domestic operating systems are experiencing rapid growth, with the market size surpassing 80 billion yuan and a replacement rate exceeding 70% in government, finance, and industrial sectors [4] - The domestic operating system's market share in server operating systems has reached 35% [4] - The urgency for domestic software innovation is highlighted, with opportunities in domestic operating systems, industrial software, databases, office software, enterprise management software, and security software being noteworthy [4] Group 4: Stock Performance of Key Companies - The stock performance and weight of key companies in the software sector include iFlytek (0.35%, 13.93%), Kingsoft Office (-0.05%, 8.15%), Tonghuashun (2.56%, 7.39%), Hengsheng Electronics (0.83%, 6.39%), Runhe Software (2.34%, 5.09%), 360 (0.78%, 4.49%), Softcom Power (0.57%, 3.92%), Tuo Wei Information (2.04%, 3.91%), Zhinan Zhen (0.14%, 3.62%), and China Software (-0.04%, 3.50%) [6] - Investors can also consider the Software ETF linked fund (012620) for AI software investment opportunities [6]

Core Viewpoint - The software industry in China is experiencing significant development opportunities, supported by positive government policies aimed at promoting technological innovation and industry upgrades [4] Group 1: Market Performance - As of October 16, 2025, the CSI Software Service Index has decreased by 1.51%, with major stocks like China Software, Runhe Software, and Kingsoft Office leading the decline [1] - The Software ETF (159852) has seen a trading volume turnover of 3.12% and a transaction value of 181 million yuan, reaching a new high of 5.872 billion yuan in total assets [3] - The Software ETF has achieved a net inflow of 1.113 billion yuan over the past week, with a single-day peak inflow of 507 million yuan [3] Group 2: Fund Performance - The Software ETF has recorded a net value increase of 21.92% over the past three years, with the highest monthly return since inception being 39.35% [3] - The longest consecutive monthly gain for the Software ETF is three months, with a maximum increase of 69.40% and an average monthly return of 10.06% [3] Group 3: Key Stocks and Weightings - The top ten weighted stocks in the CSI Software Service Index account for 62.41% of the index, with iFlytek, Tonghuashun, and Kingsoft Office being the most significant contributors [3] - The performance of key stocks includes iFlytek down by 1.45%, Kingsoft Office down by 2.38%, and Runhe Software down by 2.89% [6] Group 4: Industry Outlook - The Chinese government has emphasized support for emerging industries, particularly in the technology innovation sector, as part of the 14th Five-Year Plan [4] - Analysts from China Galaxy Securities suggest that the domestic software industry is entering a critical phase of localization, with expected benefits in areas such as EDA, industrial software, operating systems, databases, and cybersecurity [4]