Group 1 - The Beijing Stock Exchange (BSE) is experiencing a strong market performance, with the BSE 50 Index surpassing the 1500-point mark, indicating a significant upward trend [1] - Institutional investors are increasingly attracted to the BSE due to its unique market position and the scarcity of listed companies, leading to a rise in public fund allocations [1] - In the first quarter, 72 funds included BSE companies in their top ten holdings, with a notable increase in both the number and scale of funds focusing on the BSE market [2] Group 2 - The total scale of BSE-themed funds has exceeded 13 billion yuan, with both active and passive funds showing a preference for companies with low valuations and strong growth potential [2] - The BSE 50 Index fund reached a scale of 9.26 billion yuan, increasing by 1.48 billion yuan from the previous quarter [2] - Several BSE-themed funds have adjusted their subscription and redemption plans to manage scale and mitigate risks associated with heavy stock positions [4] Group 3 - New BSE-themed funds are still being launched, allowing ordinary investors to participate in BSE investments, with the Dachen BSE 50 Index fund set to be issued from May 19 to May 23 [5] - The Dachen fund aims to replicate the index with a management fee of 0.5% and a custody fee of 0.1% [5]

Core Viewpoint - The small-cap style in the A-share market has rapidly recovered since April 7, with significant gains in micro-cap indices outperforming larger indices, indicating a potential shift in investor sentiment and market dynamics [1][2][3]. Group 1: Market Performance - From April 8 to May 14, the micro-cap index rose over 20%, while the North Exchange 50 index surged more than 36%, significantly outperforming the Shanghai 50 and CSI 300 indices [1]. - Several small-cap style funds have also experienced substantial rebounds, with some reporting returns exceeding 35% during the same period [1][2]. Group 2: Fund Management Actions - The Pengyang North Exchange 50 index fund reduced its maximum subscription amount from 500,000 to 50,000 yuan to ensure stable fund operations and protect investors' interests [2]. - The CITIC Prudential Multi-Strategy Fund suspended large subscriptions over 2 million yuan, indicating a cautious approach to managing fund inflows amid rising market volatility [2][3]. Group 3: Factors Driving Recovery - The recovery in small-cap stocks is attributed to multiple factors, including a series of financial support policies, unexpected interest rate cuts, and a shift in investor sentiment towards technology and advanced manufacturing sectors [3]. - The acceleration of AI industrialization and the emergence of new production themes have also contributed to the market's return to a growth trajectory, with funds rotating towards more flexible small-cap stocks [3]. Group 4: Investment Strategies - Fund managers are focusing on structural opportunities in technology and advanced manufacturing, particularly in sectors like semiconductors and AI, to capture potential rebounds in performance and valuation [3][4]. - The emphasis is on identifying high-quality stocks that have been oversold but possess strong competitive advantages, aiming to benefit from improved liquidity and market sentiment [3][4]. Group 5: Market Sentiment and Risks - The small-cap style may enter an emotional trading phase, with high turnover rates and increased market interest, necessitating a cautious investment approach to avoid potential corrections [4][5]. - The recent regulatory actions by the China Securities Regulatory Commission to enhance the performance benchmarks for public funds may impact liquidity and investment strategies across various sectors [4][5].

Core Viewpoint - The recent resurgence of the Beijing Stock Exchange (BSE) has led several fund companies to implement large purchase restrictions on their North China 50 Index funds to manage investor demand [1][2]. Fund Purchase Restrictions - On May 14, Xizang Dongcai Fund announced that its North China 50 Index fund would limit daily purchases, conversions, and regular investment amounts to a maximum of 200,000 yuan per account [2][4]. - The fund's total share limit is set at 500 million shares, effective from November 6, 2024, with a "proportional confirmation" principle for controlling total scale [6]. Fund Performance - As of the end of Q1 this year, the total scale of the Xizang Dongcai North China 50 Index fund was 782 million yuan, with 473 million shares outstanding [7]. - The North China 50 Index has seen a year-to-date increase of nearly 37%, with a rebound of approximately 15% since April 7 [9]. - Among the North China-themed funds, 11 funds have reported net value growth rates exceeding 25%, with six products achieving returns over 38% [9]. Market Outlook - Analysts express a cautiously optimistic view on the long-term investment value of many companies within the BSE, suggesting a proactive approach to positioning in the current market environment [10]. - There is a recommendation to be cautious of potential valuation fluctuations in the BSE, advocating for low-valuation configurations to mitigate risks and secure some profits [11].