A：In the domestic market, we will focus on policy orientation, focusing on advanced manufacturing, intellectual productivity, and technological innovation as the main directions for equity investment. Compared to before, policies now emphasize domestic demand more, explicitly setting a goal to increase the consumption rate of residents. Based on the tone set at the beginning of the year at the Central Economic Work Conference, the economic growth target is more realistic, and fiscal and monetary policies will maintain a certain level of intensity and seek new space, such as possible further reductions in reserve requirements and interest rates, while fiscal policy is expected to strengthen its determination. Firstly, we will focus on manufacturing, especially companies with supply chain advantages and technological dividends; secondly, the trend in the technology sector, especially in the AI industry, is clear and has great investment potential; thirdly, after five years of adjustment in the consumer sector, some sub-sectors showing stability in economic activity can be moderately positioned to the left. Furthermore, attention should also be paid to price elasticity opportunities brought about by supply-side clearance and the allocation value of internet platform companies listed in the Hong Kong stock market.

A：In terms of overseas, we expect a situation of simultaneous loose fiscal and monetary policies in 2026, with the example of the US interest rate cutting cycle opening and fiscal expansion plans in European, Japanese, and other countries. This will lead to a soft landing or even mild acceleration of the global economy, providing good support for domestic capital markets. Especially in terms of AI investments, it is a bright spot in global demand, indirectly boosting consumer demand through capital expenditure and wealth effects from stock market gains, and driving trade demand in the global technology industry chain, especially benefiting the Asian market significantly.

A：It is expected that the growth rate of stock social financing in 2026 will continue to decline, and the pressure on the government to stabilize economic growth is not significant. Expectations for short-term policy stimulus should not be too high. In terms of household consumption, factors such as balance sheet repair after the epidemic, falling house prices, etc., may lead to consumption being in a low-level fluctuation. However, with the emergence of a series of catalysts and driving factors, as well as the adjustment of economic growth targets, consumption is expected to gradually rebound.

A：After several years of tariff wars, China's export environment has become more stable, with its tax advantages remaining unchanged. The proportion of exports to the United States has decreased, while the proportion of exports to countries along the Belt and Road has increased. Therefore, it is believed that China's exports will still have strong resilience in 2026.

A：After more than four years of adjustment, the real estate industry is approaching a cyclical bottom in terms of new home sales area, but price factors will take some time to digest. However, there are signs of stabilization in some local areas. In addition, with the clearance of production capacity and the decrease in capital expenditure, some sub-industries have shown a trend of price bottoming and rebounding, combined with a market environment that is bucking the trend, expectations of price increases may spread, especially as the Producer Price Index is expected to climb out of negative territory by mid-year, which will have a positive impact on the profitability of midstream companies.

A：It is expected that the earnings growth rate of listed companies in 2026 will have a certain rebound, although the extent and slope of the rebound are still unclear. At the same time, the proportion of overseas revenue is increasing, and the gross profit margin of overseas business is generally higher than that of domestic business, which helps to improve the profitability stability and growth potential of the entire listed company. In terms of valuation, although equity valuation is relatively high, there is still room for improvement in the stock-bond price ratio due to the decrease in risk-free interest rates.

A：Liquidity remains ample, although some institutional investors have significantly increased their positions, there is still room for further increases. The peak of maturity for resident financial funds may lead to an increase in demand for yield, becoming a long-term source of incremental funds. Foreign capital is also starting to return after outflows, providing liquidity support for the equity market.

A：It is expected that the overall market style will be dominant throughout the year, with strong performance of growth investment themes in the first quarter. Subsequently, as fundamentals improve and the anti-insular effect becomes apparent, both cyclical and consumer sectors will also have long-term allocation value. Looking at historical data, when A-share profits rebound, the correlation between the performance of the overall market and small-cap stocks is higher, and the overall market's P/E ratio is at a low level, indicating the possibility of a style shift.

A：We have two main methodologies on pullback control. First, we compare cost-effectiveness between industries and asset categories, rotating industries and taking profit. Secondly, we emphasize decision-making on high-probability investment opportunities and focus on process and precision management of fixed income portfolios, controlling the volatility of products through diversified investment and flexible trading.

A：Okay, I am Yao Difan, the fund manager of YinHua Fund. The medium-high volatility products I manage mainly have two characteristics: one is the use of relatively active position with rights; second is the focus on high confidence medium-term industrial trends, sharing the growth dividends of the industry, and through the linkage of stocks and convertible bonds, when opportunities arise in both areas, the stock manager and convertible bond manager work together to enhance portfolio returns. In terms of preventing drawdowns and controlling fluctuations, we adopt strategies such as not concentrating on a single industrial trend, rotating within and between industrial trends.

A：Currently, it is a relatively favorable macroeconomic environment for industry investment. After experiencing economic adjustments, facing moderate GDP growth rates and decreasing volatility, coupled with economic transformation, inflation is expected to bottom out, and monetary policy is favorable. Domestic and foreign experiences suggest that in similar environments, there is often a clear structural bull market. Moreover, China's 15th Five-Year Plan explicitly proposes industry investment directions such as technological self-reliance and self-strengthening, making the current macro environment very conducive to industry trend investment.

A：We divide the new industry trends into five stages based on industry penetration rates: 0 to 1, 1 to 10, 10 to 50, 50 to 80, and over 100, each corresponding to different winning rates and odds. We mainly invest in these three stages: 10% to 100%, and earn profits through valuation expansion, profit growth, and Davis double-click from different perspectives.

A：We are optimistic about the equity market this year, believing that it is expected to achieve profitability and valuation driven by both factors. Among them, the two key directions are general intelligence and overseas investments. In terms of general intelligence, AI applications and infrastructure are mutually supportive, especially in the stage of model performance improvement and application outbreak; in the direction of going global, the overseas expansion of the manufacturing industry will undergo a transformation, from product export to capacity, brand, and system export. Industries such as innovative drugs and new energy vehicles have the ability to go global and are worth paying special attention to.

A：We have shifted from multi-asset to multi-strategy management, ranking the price-performance ratio of major asset classes provided by the asset allocation team each month, and making timely adjustments based on the equity allocation pivot. The fixed income portion is managed by fixed income plus investment managers, while the equity portion is flexibly allocated by equity fund managers based on the central framework, ensuring the optimal risk-return ratio within the entire asset allocation framework.

A：By controlling the proportion of purchases and choosing the appropriate investment stage based on the different stages of the industry cycle, we can increase the sharpness of the portfolio appropriately to balance risk. At the same time, we will reflect on and adjust our investment methodology, focusing on individual stock selection while controlling overall volatility through portfolio construction. The performance of the equity market is crucial, as the competitiveness of fixed-income products largely depends on the performance of the equity portion. In low-volatility fixed-income products, we will finely manage the risks within different asset portfolios and strive to improve the risk-adjusted return on individual stock selection to attract investors and achieve competitiveness with bank wealth management products.

A：The main advantage of fixed income products is that they can help investors avoid being overly frightened by market sentiment fluctuations, especially when there are frequent style changes, they can provide a better investment experience. We strive to achieve stable returns and lower drawdowns through industry diversification, moderate style deviations, and a combination of undervalued high dividend, high growth, and technology growth assets.

A：We divide the market into multiple sectors such as value, cycle, growth, and consumption, and maintain a balanced market style. This year, corporate profits have bottomed out and rebounded, and supply and demand relations have improved, providing us with more opportunities to choose industries. We can control the drawdown while pursuing higher returns without sacrificing yield.

A：In our industry, we achieve moderate diversification and relatively balanced styles. We use different stock selection methodologies for different types of stocks, such as stable, asset quality, and growth. For companies with stable main businesses and high dividend rates, as well as emerging industries benefiting from industry structure optimization and technological progress, we actively seek investment opportunities and seek balance between different styles in order to achieve stable returns.

A：The third type of assets mainly target stocks that are greatly influenced by industry trends and economic conditions. These assets tend to have high volatility because as new incremental information emerges in the industry, expectations regarding industry ceilings, penetration rate improvements, and other factors continue to change. Growth stock funds can withstand this volatility, focusing on capturing directions amid uncertainty. However, for low-volatility products, it is necessary to assess the stage of the industry cycle and choose the right time to participate in order to control drawdowns and maximize returns.

A：The performance of the A-share market over the past year has been relatively good, after experiencing a prolonged bear market. Although the Shanghai Composite Index is still some distance from its peak, many individual stocks have reached historic highs, thanks to the ability of numerous high-quality companies to weather the cycle. In the absence of systemic downside risks in the macro economy, we maintain a positive attitude towards the equity market, especially as bond contributions are relatively low in fixed-income products and the equity portion needs to make a greater contribution. The bottoming out and recovery of the Chinese economy, as well as expectations of corporate profit improvement, provide structural opportunities for the market. In terms of investment strategy, it is important to maintain balance and weigh the quality of undervalued companies against their future growth prospects.

A：Focus on the improvement cycle of corporate performance and the overseas direction of technological growth, while also paying attention to undervalued stocks related to domestic demand. They are sensitive to policy stimulus or improvements in company fundamentals, with significant room for valuation repair. In addition, during the first quarter, the disclosure of annual reports and quarterly reports has a significant impact on corporate performance. It is important to focus on relevant work and strive to earn money by exceeding the company's expectations.

A：Fixed income products with a multi-asset, multi-strategy engineered management system aim to achieve higher returns under certain risk assumptions and provide better risk-return experiences for different products. For example, YinHua YuanJing focuses on broad growth opportunities and convertible bond rotation, while KeReiLai Fund primarily uses convertible bonds as a main tool, requiring strong flexibility and focusing on allocating to prosperous growth sectors. ShuangLi products combine technology growth allocation and convertible bond volatility management, seeking relatively high flexibility in position allocation.

A：From the perspective of win rate and odds, different assets have different cost-effectiveness. In the stock market, despite the current economy being at a low point, with low interest rates and loose liquidity, structural opportunities are still active with macro and industry policy support. Pay attention to whether PPI can substantially rebound to judge the direction of corporate profit improvement. In the bond market, nominal growth is expected to slightly rebound, but internal demand constraints the extent to which interest rates rise, overall positive for both the bond market and A shares. Fixed-income products focus on interest rate strategies, with significant market differentiation currently, seeking opportunities for oscillating growth after interest rates rise. Convertible bond market valuations are at historically high levels, and may face adjustments in the future, but with expectations of a good equity market, the high pricing level of convertible bonds may not be fully released in the short term, increasing the difficulty of selecting securities.

A：We will make adjustments to the configuration at the portfolio level, with the overall direction being to remain bullish on equity markets while maintaining a certain level of safety margin, reducing the proportion of convertible bonds and increasing exposure to stocks. Taking into consideration both win rate and odds, we believe there are good opportunities in the equity market this year. Therefore, we will maintain a relatively positive safety exposure in various fixed income products and utilize our strengths to achieve excess returns on assets.

A：Yinhua Fixed Income Plus team has a rich range of multi-asset products. We recommend investors to choose the right products based on their different risk and return preferences. We will continue to strive to create good investment returns for investors.

A：In the era of low interest rates, FOF funds achieve value through multi-asset, multi-strategy, and multi-dimensional allocation characteristics. Among them, multi-asset allocation can use low correlation to reduce portfolio volatility and drawdown; from a multi-strategy perspective, we will dig deep into alternative investment strategies to obtain stable sources of income; from a multi-dimensional perspective, we will conduct in-depth research on underlying assets, construct distinctive quantitative asset allocation models to capture investment opportunities in different market environments.

A：For actively managed equity funds, we have established a complete quantitative evaluation system that includes dynamic classification, building a unique factor library, as well as portfolio management and monitoring. The goal is to outperform various benchmarks such as dividend indexes and equity fund indexes. Similarly, for medium to long-term pure bond funds, we have also developed a similar position calculation model and complete framework with the aim of outperforming the corresponding bond fund indexes.

A：We use three sub-strategies such as tracking smart money weights, replicating biased stock funds, etc. for multi-strategy rotation; at the same time, identify market conditions and predict short-term excess returns through time momentum strategy. In terms of asset allocation, we adopt a quantitative and qualitative combined approach to construct a quantitative asset allocation model, combining historical price trends with current valuations and macro indicators for short-term path forecasting, achieving market timing.

A：We first establish the central axis of the long-term strategic allocation, and optimize the annualized returns, volatility, and drawdown targets based on product positioning. At the level of short-term tactical adjustments, we start from both quantitative and qualitative aspects, using various asset net income data for quantitative fitting, and combining fundamental factors, macro data, and information on crowd sentiment for distribution fine-tuning. We also incorporate the views of multiple asset allocation experts within the team to construct real-time TA adjustment plans.

A：We adopt a framework for position calibration based on financial reports, and adjust our investment strategy according to the color model of industry weightings and style weightings. Firstly, we classify funds into balanced funds and industry thematic funds dynamically, keeping the overall position of balanced funds stable to avoid excessive concentration in a specific sector or industry. Secondly, we build a factor library which not only depends on net asset value and holding data, but also includes some qualitative estimation data, to construct a comprehensive selection system from multiple dimensions. For example, we analyze the heavy holdings of public funds, calculate factors such as stock selection and trading ability, and evaluate the fund manager's dynamic allocation ability and level of excess alpha acquisition by combining industry estimation data. In addition, we also consider the stability and consistency of the research team, and cross-validate in four major dimensions to build, screen, and synthesize factors, ultimately used for portfolio construction.

A：The selection framework for medium to long-term pure bond funds is similar to that of actively managed equity funds, but with the addition of a data cleaning process because bond fund returns can be affected by daily subscription and redemption activities, leading to anomalies. We pay particular attention to momentum effects in the bond market and are aware that looking only at performance factors may not always be effective, as bond funds with excellent past performance may experience significant drawdowns in certain years. Therefore, we will consider duration timing and rotation strategies in order to identify fund managers who truly possess long-term duration control capabilities.

A：When excellent funds cannot be directly invested in due to restrictions, we calculate the duration of outstanding funds in the entire market and use ETFs to match their timing operations in duration, thereby simulating similar performance returns.

A：We have implemented a rotation strategy based on three major categories of ETFs, including tracking smart money, identifying momentum timing, and replicating sector funds. For example, in March 2022, we observed excellent fund managers starting to increase their positions in the pharmaceutical sector, combining this analysis with our research team's insights to predict that innovative drugs may become the main theme of the year, and adjusting our investment portfolio accordingly. Similarly, in Q4 2022, we noticed fund managers reducing their positions in industries that had seen significant gains, indicating a possible market correction, and promptly implementing corresponding profit-taking strategies. Additionally, we use a momentum timing model to capture key market points, such as trend reversals and breakouts, and make investment decisions based on the concentration of positions in the public fund industry.

A：Investment advisory services are an important bridge connecting professional investment with individualized needs, by providing professional investment advisory allocation strategies to help investors diversify risks among different assets and achieve long-term wealth goals. Mr. Yang will share his outlook on investment advisory allocation strategies for 2026, exploring new challenges and opportunities in asset correlation, portfolio diversification, and asset allocation construction in the new macroeconomic environment based on the new changes and complexities in the asset allocation environment over the past year.

A：Over the past year, different types of assets have performed relatively consistently, with the low correlation between assets weakening, resulting in better-than-expected asset allocation effects. However, this has also brought new complexities, requiring adaptation to changes in the macroeconomic environment, such as the increased timeliness of bond assets in 2025 and the phenomenon of multiple asset classes rising and falling together.

A：The shift from countercyclical regulation to cross-cyclical regulation discussion indicates that while focusing on short-term economic regulation, it is also necessary to guard against long-term systemic risks. This increases the complexity of policy expectations judgment and also requires structural adjustments to asset allocation strategies.

A：Anti-structural policies will change the supply and demand relationship, improve the performance of certain industries, and encourage industries to raise the threshold and eliminate disorderly competition. In addition, the objective of total economic growth and the increasing importance of technology will become the main focus in the future. These factors will affect asset allocation, especially the development expectations for industries such as technology and real estate.

A：The rational rise in prices is beneficial for breaking the conservative investment status of investors with extremely low risk preference, prompting more aggressive wealth management behavior. As the CPI rises and real interest rates fall, the enthusiasm for risk asset allocation will increase, and the risk preference of funds in the whole society may also marginally shift.

A：The current low interest rate environment may enter the third stage, with nominal or market interest rates remaining low and fluctuations more controllable. With the recovery of inflation and the accelerated decline of real interest rates, it is beneficial for the distribution of risk assets. It may also encourage further migration of household wealth to the capital market, and the trend of the entire society seeking returns through diversified investments is becoming more prominent.

A：Some important income contributions in the A-share market come from technology stocks, and the resonance with US technology stocks is constantly strengthening. This means that the asset diversification effect achieved through cross-regional asset allocation is decreasing. For example, in the past, bonds and gold made prominent contributions in all-weather strategies, but in 2026, the expected contributions of these single assets may need to be appropriately adjusted. When investors moderately increase risk preferences from extremely low levels, they may consider solutions such as ultra-low volatility fixed income. However, in the case of limited bond asset returns, investment solutions relying solely on stock-bond combinations or primarily on bonds with a small amount of diversified assets have investment difficulties, as the space for diversified allocation or equity investments is limited.

A：In the top-level design of the country, the government clearly stated its intention to prevent herd behavior in the financial markets, including the stock market and bond market. In the 2024 stampede event in the equity market, the government successfully prevented herd behavior, and in early 2025, effective measures were also taken to control herd behavior in the bond market. These measures help to avoid excessive concentration of short-term funds leading to significant fluctuations in asset prices and lay the foundation for the long-term healthy development of the market.

A：With the continuous use of tools and mechanisms to block herd behavior, the risk-return ratio of equity assets (such as A-shares) is expected to improve in the medium and long term, but expectations for excessive profit-taking effects should be reduced in the short term. Investors should pay attention to changes in policy, fund flows, and fundamentals in asset allocation, and use quantitative tools to capture short-term opportunities, achieve diversified and diversified investments.

A：It is expected that the bond market will have relatively small fluctuations in the future, and actively-managed bond funds with trading capabilities are worth paying attention to. Although factors such as supply and demand dynamics and macro narratives may exert pressure on the bond market, the generally weak fundamentals and overall interest rate environment make it less likely for bond interest rates to increase significantly. It is anticipated that the market will operate in a slightly less volatile environment than in 2025.

A：It is important to note that the global macro environment is becoming more complex, and asset reactions to negative news may be more sensitive than to positive news; AI as an important variable in global narratives will have complex effects on asset prices, capital demand, and global employment; domestic anti-"involution" policies are of significant importance for expectations of price recovery, actual interest rate declines, and improvements in the competitive environment of certain industries; the phenomenon of weakening financial market trends and increased volatility suggests that investors need to engage in contrarian investing; the long-term trend of residents' funds entering the market depends on holding experience, and it is necessary to have reasonable expectations for the impact of this process; index funds are entering a stage of high-quality development, and investors need to pay close attention to the differences in index compilation rules; there is a surge in demand for a combination of fixed income and diversified asset allocation, but it also faces challenges from insufficient bond yields, requiring the enhancement of technology and iterative strategies to meet customer needs.