Key Market Moves: Multiple Top-Performing Equity Funds Impose Purchase Limits, Signaling What?

Deep News12-04

**Market Overview** A-shares closed mixed with the ChiNext Index rebounding over 1%, while turnover shrank to ¥1.56 trillion. The Shanghai Composite dipped 0.06%, the Shenzhen Component rose 0.4%, and the ChiNext gained 1.01%. Over 3,800 stocks declined across major indices.

**Sector Highlights** - **Moore Threads Concept**: HeTai and Intretech surged by the daily limit. - **Consumer Slump**: Tongqinglou hit the跌停板 (down limit). - **AI Phone Adjustment**: Daoming Optical跌停. - **Robotics & Space**: Rifeng and Julong Intelligent涨停; China Satellite and Aerospace Hi-Tech活跃.

**Hong Kong Markets** The Hang Seng Index rose 0.68%, with the Tech Index up 1.45%. Healthcare led gains: Clover Biopharma (+10%), WuXi Biologics (+7%). SMIC and Trip.com both advanced ~4%.

**Industry Trends** 1. **New Funds Cautious on Deployment**: Over 80% of recently launched active equity funds show portfolio activity, though most maintain <1% NAV fluctuations amid year-end volatility. Managers emphasize patience, targeting AI applications for 2026 breakthroughs. 2. **Consumer Funds Lag**: While tech propelled A-shares toward 4,000 points, consumer-focused funds underperformed. Managers highlight "globalization" as a key stock-picking criterion, citing undervalued domestic brands’ overseas potential. 3. **Top Funds Limit Purchases**: Multiple high-performing equity funds suspended large subscriptions to preserve strategy efficacy. Institutions eye high-growth sectors and policy-driven opportunities ahead of Lunar New Year. 4. **BSE Theme Funds Relaunch**: The first batch of Beijing Stock Exchange-themed funds reopens after averaging 100% returns since 2021. UBS 50 ETF preparations signal ecosystem expansion.

**Fixed Income Shifts** Bond markets turned volatile, prompting fund managers to adopt "range-trading strategies" as yields hover near historic lows.

**Foreign Interest** Global institutions conducted >9,000 A-share surveys YTD, focusing on tech innovation and advanced manufacturing. Point72 and Goldman Sachs were most active.

**REITs Expansion** China’s REIT market saw its 9th扩募 (expansion) with CREFOR’s rental housing REIT filing. Regulators plan to pilot commercial property REITs, broadening investable assets.

**Fund Dividends** Bond funds distributed ¥155.7 billion (72.56% of total), reflecting their ¥7.1 trillion AUM dominance per AMAC data.

**Management Changes** - **Dacheng Fund**: Overhauled 8 products, replacing veteran managers with newcomers amid stability concerns. - **Industry-wide**: 26基金经理变动 in December, with 40 funds announcing departures (work transfers: 11; personal reasons: 3).

**Capital Flows** Despite index dips, ETFs attracted ¥4.9 billion inflows, led by broad-based (CSI 500/1000) and thematic (AI, dividends) funds.

**Corporate Moves** Kweichow Moutai’s私募 arm co-launched a ¥21 million PE fund in Jiaxing.

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