1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints of the Report - A-share major broad-based ETFs mostly rose in the recent week, with ChiNext 50 ETF and MSCI China A50 ETF leading the gains, up 2.57% and 1.83% respectively; the recent-week gains of major broad-based ETFs in Hong Kong and US stocks were relatively low. Commodity ETFs saw the non-ferrous ETF up 4.30% and the gold ETF up 0.87%. Each major industry ETF showed mixed performance. The cyclical category mostly rose, with the non-ferrous metal ETF having the highest increase of 5.11%. In the technology category, the communication ETF rose 4.38%, while the media ETF had a relatively high decline of -3.23% [2][11]. - As of December 5, 2025, there were 1,373 ETFs in the entire market, with a latest total scale of 575.5251 billion yuan, an increase of 6.5288 billion yuan from the previous week. In the recent week, the inflows of ChinaAMC CSI AAA Sci-tech Innovation Corporate Bond ETF and Huatai-PineBridge CSI A500 ETF were relatively high, with inflows of 3.115 billion yuan and 2.22 billion yuan respectively [2]. 3. Summary According to the Directory 3.1 Index Product Establishment, Raising, and Declaration - **Product Establishment and Listing**: In the recent week, 2 ETF products, including Penghua Hang Seng Tech ETF and E Fund CSI A500 Dividend Low Volatility ETF, were listed; 17 products, such as China Merchants Shanghai Stock Exchange Science and Technology Innovation Board Comprehensive Price Index Enhanced A, Dacheng CSI 800 Index Enhanced A, and Taixin CSI All - Free Cash Flow Index A, were established [1][5]. - **Product Issuance Information**: In the coming week, 13 index products will end their fundraising, including GF Shanghai Stock Exchange Science and Technology Innovation Board Chip Design Theme ETF and Dongxing China Bond 1 - 3 Year Policy Financial Bond Index A; 14 index products will start their fundraising, including Penghua CSI General Aviation Theme ETF and E Fund CSI Hong Kong Stock Connect High Dividend Investment ETF [1][7]. - **Product Declaration Information**: A total of 29 index products were declared in the recent week, and the declaration of fund products has recovered. The issuance market focuses on the "Sci - tech Innovation and Entrepreneurship Artificial Intelligence" theme, including 2 artificial intelligence theme funds, Tianhong CSI Artificial Intelligence Theme ETF and Orient Securities Asset Management CSI Shanghai - Hong Kong - Shenzhen Artificial Intelligence 50 Index Fund [1][9]. 3.2 ETF Market Review - A - share major broad - based ETFs mostly rose, with ChiNext 50 ETF and MSCI China A50 ETF leading the gains, up 2.57% and 1.83% respectively; the recent - week gains of major broad - based ETFs in Hong Kong and US stocks were relatively low. Commodity ETFs saw the non - ferrous ETF up 4.30% and the gold ETF up 0.87%. Each major industry ETF showed mixed performance. The cyclical category mostly rose, with the non - ferrous metal ETF having the highest increase of 5.11%. In the technology category, the communication ETF rose 4.38%, while the media ETF had a relatively high decline of - 3.23%. Among cross - border ETFs, most major broad - based indexes in cross - border markets rose in the recent week, with the China - South Korea Semiconductor having the highest increase of 2.60%. In the global market, Huaxia Hang Seng Tech ETF rose 1.20%, and E Fund Hang Seng H - share ETF rose 1.02%. Among non - monetary ETFs, Wanjia CSI Industrial Non - ferrous Metal Theme ETF led the gains with a yield of 7.91%, while Penghua Shanghai Stock Exchange Science and Technology Innovation Board New Energy ETF lagged behind with a yield of - 3.79% [2][11][15]. 3.3 ETF Fund Flow - As of December 5, 2025, there were 1,373 ETFs in the entire market, with a latest total scale of 575.5251 billion yuan, an increase of 6.5288 billion yuan from the previous week. Among them, A - share ETFs and cross - border ETFs ranked first and second in scale, at 364.7542 billion yuan and 95.2548 billion yuan respectively. The scale of A - share ETFs increased by 41.821 billion yuan in the recent week. In the recent week, the inflows of ChinaAMC CSI AAA Sci - tech Innovation Corporate Bond ETF and Huatai - PineBridge CSI A500 ETF were relatively high, with inflows of 3.115 billion yuan and 2.22 billion yuan respectively. Haifutong CSI Short - term Financing ETF led in liquidity in the recent week, with an average daily trading volume of 20.704 billion yuan. Huaxia Shanghai Stock Exchange Benchmark Market - Making Treasury Bond ETF had relatively high liquidity, with an average daily trading volume of 9.361 billion yuan [2][22][25].

Core Viewpoint - The A-share market has shown significant performance this year, with the Shanghai Composite Index crossing 4000 points multiple times, driven by policy catalysts and industrial upgrades, despite external shocks [1] Group 1: MSCI China A50 Index Changes - The MSCI China A50 Index will undergo quarterly adjustments, with three constituent stocks being replaced, leading to a decrease in the weight of traditional sectors like energy and consumption, while increasing the representation of sectors such as non-ferrous metals and new energy [1][2] - The profitability of the MSCI China A50 Index is expected to improve, as the newly included stocks show significantly better return on equity (ROE) compared to those being removed [2] - The growth potential of the MSCI China A50 Index is anticipated to rise, with new constituent stocks expected to have a year-on-year profit growth rate of 138%, compared to a mere 5% increase for the stocks being removed [4] Group 2: Historical Adjustments and Trends - Historical adjustments of the MSCI China A50 Index indicate a significant increase in the weight of new productive forces, particularly in information technology, which has risen by 18.7% since the index's inception [7] - The importance of new productive forces in economic high-quality development is underscored by the increasing contribution of the "three new" economies to GDP, reflecting a broader trend in economic growth [8] - The MSCI China A50 Index has a higher proportion of new productive forces compared to similar indices, with a combined weight of 47% in sectors like information technology, manufacturing, and pharmaceuticals, which positions it to capture long-term benefits from emerging industries [10] Group 3: Future Outlook for 2026 - As 2025 concludes, investors are shifting focus towards stable, undervalued core assets, with the MSCI China A50 ETF expected to perform well in a market driven by profitability rather than liquidity [12][13] - The MSCI China A50 ETF is highlighted as a resilient core asset, likely to benefit from the anticipated shift towards profit-driven market dynamics in 2026 [14] - The index has shown a cumulative increase of 22% year-to-date, outperforming similar indices due to its focus on new productive forces and sectors undergoing transformation [14]

Market Overview - The A-share market experienced a strong upward trend, with the Shanghai Composite Index approaching 4000 points, closing up 1.18%, marking a 10-year high [1] - The recent strength in the index is attributed to favorable macro policies announced on October 23, which are expected to provide clearer market direction and facilitate a rally [1][3] External Factors - Short-term external risks have eased, boosting market risk appetite. Recent economic discussions between China and the U.S. in Malaysia resulted in constructive exchanges on key trade issues, including maritime logistics and tariff suspensions [3] Market Dynamics - Despite the index reaching a new high, nearly 70% of individual stocks underperformed the Shanghai Composite Index, leading to investor concerns about the disparity between index performance and individual stock gains [4] - The market is characterized by a structural trend where quality stocks are favored, resulting in a more concentrated performance rather than a broad market rally [4][6] Investment Strategies - Given the challenges for individual investors to outperform the index, especially for newcomers lacking experience, investing in index ETFs is recommended as a more effective strategy [6][7] - ETFs provide lower investment thresholds, high liquidity, and the ability to trade throughout the day, enhancing capital efficiency [7] Notable ETFs - The ChiNext 50 Index ETF (588870) has shown a cumulative increase of 50.08% year-to-date, outperforming 74% of its constituent stocks, with a low fee rate of 0.15% [8] - The MSCI China A50 ETF (560050) has achieved a year-to-date increase of 25.5%, outperforming 76% of its constituent stocks, providing a solution for investors looking to access leading Chinese assets [9] - The CSI A500 Index ETF (563880) has recorded a year-to-date increase of 22.78%, outperforming 60% of its constituent stocks, while maintaining a lower volatility compared to 94% of its peers [11] Sector Performance - Key sectors such as cloud computing, semiconductor, and battery industries are highlighted as areas of potential growth, driven by technological advancements and market trends [11][12][13] - The Cloud Computing ETF (159273) has outperformed 92% of its constituent stocks, while the Semiconductor ETF (588750) has shown a 66.5% increase, outperforming 74% of its peers [12][13]

Market Overview - Investors face a dilemma of holding stocks or cash during the upcoming National Day holiday, as A-shares will be closed while overseas markets remain open [1] - Historical data indicates a "post-holiday effect" in the A-share market, with a higher probability of a "post-holiday opening red" [1][2] - Over the past decade, the Shanghai Composite Index has generally performed better after holidays compared to before, with post-holiday gains often being more sustained during significant market rallies [1] A-share Performance Data - The table shows the performance of the Shanghai Composite Index before and after the National Day holiday from 2015 to 2024, highlighting the percentage changes [2] - The probability of the index rising post-holiday is 70% for the first trading day and 60% for the first five trading days [2] Hong Kong Market Insights - The Hong Kong market exhibits a "mid-holiday effect," with a tendency to rise during the National Day holiday, although the first trading day after the holiday may be weaker [5] - The Hang Seng Technology Index shows a higher probability of rising post-holiday, especially when the market is in an upward trend [5][6] Sector Performance Expectations - In the A-share market, sectors such as computer, beauty care, environmental protection, pharmaceutical biology, and automotive are expected to show strong performance in the five trading days following the holiday [8] - For the Hong Kong market, all sectors except comprehensive finance have an upward probability of over 60%, with consumer, high-beta, and growth sectors performing relatively well during the holiday [8][9] Investment Strategies - The report suggests focusing on "hard technology" sectors, including technology, chips, computing power, robotics, and artificial intelligence, as they are expected to lead market trends [11][13] - The "anti-involution" theme is highlighted, particularly in the battery and non-ferrous metals sectors, which are anticipated to benefit from policy catalysts and demand [13] - The report also emphasizes the potential of innovative pharmaceuticals, particularly in the Hong Kong market, due to favorable liquidity conditions and low valuations [14] Broader Market Trends - The report indicates that broad-based ETFs are likely to capture market trends effectively, with financial sectors such as brokerage firms expected to lead the charge [11] - The consumer sector is also highlighted as a key area of interest, especially during the holiday season, with significant inflows into consumer-focused ETFs [14]

Core Viewpoint - The A-share market is experiencing a significant rally, driven by improved market confidence, active capital flow, heightened investor risk appetite, and a booming industrial sector, particularly in technology and innovation [1][3][4]. Group 1: Market Drivers - Policy improvements have bolstered capital market confidence and catalyzed economic recovery, with GDP growth of 5.3% year-on-year in the first half of 2025, surpassing the annual target [1]. - The capital market is seeing sustained activity, with margin trading balances reaching a near 10-year high and daily trading volumes exceeding 2 trillion yuan, attracting foreign investment due to lower valuations of Chinese assets amid a U.S. interest rate cut cycle [1]. - Investor risk appetite has significantly increased due to policy catalysts and expectations of economic recovery [3]. Group 2: Investment Opportunities - ETFs are highlighted as effective tools for navigating the current market, addressing stock selection challenges and lowering investment thresholds, with many ETFs priced around 1 yuan per unit, making them accessible [5][6]. - The securities sector is poised for growth, supported by active trading, new business ventures by Chinese brokerages, and strong financial policies, making securities ETFs a focal point for investment [7]. - The semiconductor sector shows robust recovery, with a projected net profit growth of 104% for 2025, driven by AI advancements and domestic substitution trends [7]. - The cloud computing sector is positioned to benefit from the increasing demand for computing power, with ETFs capturing both domestic and Hong Kong market opportunities [7]. - The robotics sector is experiencing rapid development, with various products and themes emerging, presenting investment opportunities in robotics ETFs [7]. - Traditional energy and new energy sectors are also highlighted, with ETFs focusing on industrial metals and renewable energy benefiting from favorable policies and market demand [7][8]. Group 3: Consumer and Technology Focus - The consumer sector is gaining traction, with significant inflows into consumer ETFs, reflecting a strong emphasis on domestic consumption [8]. - The TMT (Technology, Media, and Telecommunications) sectors are expected to thrive under supportive policies and market conditions, with ETFs focusing on technology innovation and growth [9].