| scope of investment |
The investment objects of the Fund are financial instruments with good liquidity, including domestically issued and listed stocks (including GEM and other stocks approved or registered for listing by the China Securities Regulatory Commission), depositary receipts, stocks listed on the Stock Exchange of Hong Kong (hereinafter referred to as "Hong Kong stocks") that are allowed to be traded under the trading interconnection mechanism between the mainland and Hong Kong stock markets Bonds (including government bonds, central bank bills, local government bonds, short-term financing bonds, ultra short-term financing bonds, medium-term notes, financial bonds, corporate bonds, corporate bonds, publicly issued subordinated bonds, convertible corporate bonds (including separable trading convertible bonds), exchangeable corporate bonds, government supported bonds, government supported institution bonds Publicly issued short-term corporate bonds of securities companies, etc.), asset-backed securities, bond repurchase, bank deposits, inter-bank certificates of deposit, money market instruments, stock index futures, treasury bond futures, stock options and other financial instruments that the CSRC allows funds to invest (but must comply with the relevant provisions of the CSRC). The Fund will participate in financing business in accordance with laws and regulations. If laws and regulations or regulatory authorities allow the fund to invest in other varieties in the future, the fund manager may include them into the investment scope after performing appropriate procedures. |
| investment strategy |
Allocation strategy of major categories of assets The Fund studies and judges from the macroeconomic environment and the trend of the securities market, and dynamically adjusts the allocation ratio of stocks, bonds, money market instruments and other assets in combination with the risk return level of relevant types of assets, so as to optimize the investment portfolio. In the decision-making of asset allocation in general categories, the Fund mainly considers the following factors: (1) Macroeconomic indicators: including but not limited to GDP growth rate, industrial added value, profit growth of industrial enterprises, PPI, CPI, changes in market interest rates, money supply, fixed asset investment, import and export trade data, etc., through comprehensive analysis of the above indicators to determine the current stage of the economic cycle; (2) Market characteristic indicators: including but not limited to the rise and fall of stock and bond markets and expected yield, various market transaction indicators, equity risk premium, overall market valuation level and comparison with foreign markets, market capital supply and demand relationship and its changes; (3) Macro policy factors: including but not limited to monetary policy, fiscal policy, capital market related policies, etc. Stock investment strategy (1) Industry configuration strategy At the level of industry configuration, the Fund will use the top-down industry configuration method to evaluate from multiple dimensions such as the industry development cycle, industry prosperity, industry competition pattern, industry development speed, industry development trend and market space, and combine the value concept and growth concept to select industries that meet the future development direction of society in the long term and have high prosperity in the short and medium term for configuration. (2) Individual stock selection strategy On the basis of industry allocation, through quantitative analysis and qualitative analysis, select listed companies with large growth space, good corporate governance and relatively reasonable valuation from bottom to top to invest. The Fund will use a combination of quantitative and qualitative analysis to determine the stock selection database. In terms of quantitative analysis, the fund manager will comprehensively consider the value degree, growth ability, profit trend and other quantitative indicators of individual stocks for preliminary selection. The investment research team will also provide high-quality individual stock portfolio and include it into the stock preliminary selection database according to the industry prosperity, individual stock fundamental expectations and other fundamental analysis indicators, combined with the field research results of relevant listed companies. 1) Large growth space Analyze from three aspects, including industry space, business model and industry barriers, and select investment targets with huge growth space. Among them, in terms of industry space, the industry has a rapid growth and a large market capacity, which can bring greater growth space for enterprises; In terms of business models, different business models determine different value distribution in the development of the industry, and preferred listed companies with stronger voice and value distribution rights in the business model; In terms of industry barriers, higher industry barriers are conducive to improving industry concentration, thus improving the premium ability of high-quality enterprises. 2) Good corporate governance By examining the shareholder structure, incentive and restraint mechanism, entrepreneurs and management, we can find enterprises with good corporate governance. Among them, in terms of shareholder structure, the focus is on the background of shareholders, changes in equity, related transactions, independence and other aspects; In terms of incentive and constraint mechanism, the focus is on equity incentive, the consistency of interests between management and shareholders, etc; In terms of entrepreneurs and management, we are committed to finding outstanding Chinese entrepreneurs and enterprises under their management. 3) Reasonable valuation Reasonable valuation brings margin of safety. In terms of valuation indicators, the absolute valuation is calculated through models such as discounted cash flow (such as DDM, DCF), and the relative valuation indicators such as PE, PB, PEG, EV/EBITDA are also examined. The stocks of listed companies that are undervalued, or whose valuation levels are relatively reasonable and match the growth are selected for investment. (3) Stock investment strategy of Hong Kong Stock General Standard The Fund may invest in the Hong Kong stock market through the trading interconnection mechanism between the mainland and the Hong Kong stock market. The Fund will follow the stock investment strategy and give priority to Hong Kong stocks with healthy fundamentals, high upward performance flexibility and valuation advantages to be included in the Fund's stock portfolio. Definition of advanced manufacturing theme Advanced manufacturing theme listed companies refer to high-quality enterprises in the manufacturing industry that have advanced core technology and innovation capabilities, high added value, can promote the transformation and upgrading of the traditional manufacturing industry, and lead the high-quality development of the manufacturing industry. Specifically, the listed companies involved in the advanced manufacturing theme defined by the fund are mainly distributed in the following industries (according to the Shenwan industry classification, the following industries default to the Shenyi industry, and the secondary industry is described separately): (1) Industries of listed companies with advanced core technology and innovation capability, including power equipment, automobiles, mechanical equipment, new metal materials (Shenwan Level II), non-metallic materials (Shenwan Level II), and environmental protection equipment (Shenwan Level II) industries; (2) Industries of listed companies with high added value and making breakthroughs in key technologies, including electronics, medical devices (Shenwan II), chemical pharmaceuticals (Shenwan II), biological products (Shenwan II), aerospace equipment (Shenwan II), aviation equipment (Shenwan II), military electronics (Shenwan II), and maritime equipment (Shenwan II); (3) The industries of listed companies that use new generation information technology to empower traditional manufacturing industries and lead them to high-end and intelligent transformation include communication equipment (Shenwan Level II), software development (Shenwan Level II), computer equipment (Shenwan Level II), IT services (Shenwan Level II), communication services (Shenwan Level II), decoration building materials (Shenwan Level II), and household appliances. For example, with the development of social economy and the change of industrial structure in the future, the category of advanced manufacturing will change. On the premise of not changing the investment objectives and risk return characteristics of the fund, the fund manager can change the definition method of the theme of advanced manufacturing after performing appropriate procedures and announce it in the update of the prospectus. Investment strategy of depositary receipts The strategy of the Fund to invest in depositary receipts shall be implemented in accordance with the above stock investment strategy for domestic listing. Investment strategy of short-term corporate bonds of publicly issued securities companies The Fund will screen the selected short-term corporate bonds of securities companies according to internal credit analysis methods, and strictly control the investment proportion of short-term corporate bonds of single securities companies. In addition, as the overall liquidity of short-term corporate bonds of securities companies is relatively poor, the Fund will analyze and monitor the liquidity of short-term corporate bonds of securities companies to be invested or already invested, and try to choose the relatively good liquidity varieties for investment to ensure the liquidity of the Fund. Investment strategy of participating in financing business When participating in the financing, the Fund will participate in the financing business in accordance with the principle of risk management, within the scope and proportion allowed by laws and regulations, under the premise of controllable risks, and in line with the principle of prudence. |