CITIC Securities released a research report stating that as of the end of 2023 (data disclosed by AMAC as of the end of November), the number of domestic public equity funds reached 11,391, with a total scale of public equity funds of 27.45 trillion yuan and 26.2 trillion shares. The number of funds increased by 1.52% compared to the previous quarter, while the shares increased by 0.85% and the scale decreased by 0.11%. Among actively managed equity funds in different CITIC primary industries, pharmaceuticals, food and beverages, and electronics ranked among the top three in market value, with food and beverages and pharmaceuticals accounting for over 10%. In the fourth quarter, electronics, pharmaceuticals, and agriculture, forestry, animal husbandry, and fishery all saw increased holdings, while on the other hand, food and beverage, media, and consumer services saw significant reductions in holdings. In the fourth quarter of 2023, a total of 24 new FOFs were issued, a decrease of 6 from the third quarter of 2023, with a total issuance scale of 12.13 billion yuan, a decrease of 22 billion yuan from the third quarter. The market share of the top ten fund companies in terms of scale was 65.06%, slightly down from the third quarter. The top ten stock-heavy funds with the largest increase in holdings included short-term and pure bond ETFs, while actively managed equity funds mainly increased holdings in E Fund Pharmaceutical Biology and mixed funds increased holdings in Golden Eagle Dividend Value. In terms of industry thematic funds, FOFs reduced holdings in balanced funds and increased holdings in pharmaceutical funds. CITIC Securities' main points are as follows: Bond fund scale continues to rise, while stock mixed funds scale declines As of the end of 2023 (data disclosed by AMAC as of the end of November), the number of domestic public equity funds reached 11,391, with a total scale of public equity funds of 27.45 trillion yuan and 26.2 trillion shares. The number of funds increased by 1.52% compared to the previous quarter, while the shares increased by 0.85% and the scale decreased by 0.11%. When different types of funds are distinguished, the scale of stock and mixed funds decreased in the fourth quarter, while the scale of bond funds increased by 1.16%, the scale of stock funds decreased by 1.59%, and the scale of mixed funds decreased by 5.08%; QDII funds increased by 5.54%. Actively managed equity funds' positions continue to rise steadily, with flexible allocation funds' positions approaching the 90th percentile In the fourth quarter, the average position of actively managed equity funds increased by 0.53%, with a mean of 82.49%, marking the second consecutive quarter of increasing positions. Among actively managed equity funds, the position of general stock funds decreased by 0.07%, currently at the 58.3% percentile over the past three years; the position of equity mixed funds increased by 0.5%, currently at the 75% percentile over the past three years; the position of flexible allocation funds increased by 0.44%, currently at the 91.6% percentile; and the position of balanced mixed funds decreased by 1.06%, currently at the 33.3% percentile over the past three years. The average position of stock funds (including equity and general stock funds) increased by 0.41%. Pharmaceuticals surpass food and beverages as the top heavy sector Among actively managed equity funds in different CITIC primary industries, pharmaceuticals, food and beverages, and electronics rank among the top three in terms of market value, with food and beverages and pharmaceuticals accounting for over 10%. In the fourth quarter, electronics, pharmaceuticals, and agriculture, forestry, animal husbandry, and fishery saw increased holdings, while on the other hand, food and beverage, media, and consumer services saw significant reductions in holdings. At the same time, actively managed equity funds increased their holdings in growth and cyclical sectors, with increases of 2.08% and 0.58% respectively, while significantly reducing their exposure to finance and consumer sectors, with decreases of 1.45% and 1.38% respectively. Little change in the top ten heavy stock holdings As of the end of the fourth quarter of 2023, the top ten fund heavy stock holdings by market value were: Guizhou Moutai, Contemporary Amperex Technology Co. Limited, Luzhou Laojiao, Wuliangye Yibin Co., Ltd., Tencent Holdings, Conrive Medicine, Luxshare Precision, Mindray Medical International, WuXi AppTec Co., Ltd. and Shanxi Fenjiu Co., Ltd. Global markets differentiation, Hong Kong utility companies in focus As of the end of December 2023, northbound funds had a net purchase of 1,768.302 billion yuan, while southbound funds had a net purchase of 2,899.22 billion Hong Kong dollars. In the fourth quarter, northbound funds had a net sale of 52.029 billion yuan, while southbound funds had a net purchase of 1.881 billion Hong Kong dollars. From the perspective of Hong Kong Hang Seng industry allocation, actively managed equity funds invested in information technology decreased to 30.81%, non-essential consumer goods increased to 13.19%, and healthcare and energy exceeded 10%. The increased allocations were mainly focused on utility companies, healthcare, and non-essential consumption, while reducing allocations to essential consumption and information technology. Bond fund duration increases, convertible bond premium decreases As of the fourth quarter of 2023, credit bonds accounted for approximately 86.7% of short-term debt funds and around 53.47% of medium and long-term debt funds. Compared to the third quarter, short-term debt funds slightly decreased their allocation to credit bonds by 1.74 percentage points, while medium and long-term debt funds slightly reduced their allocation to credit bonds by 1.3 percentage points. The average duration of pure bond funds increased from 1.88 years in the previous quarter to 2.4 years in the fourth quarter. In terms of distribution, pure bond funds increased the allocation of bonds with maturities of over 3 years, while reducing the allocation of short-term debt with durations of under 3 years. Bond funds with options increased the proportion of 1-3 year and 5-7 year term bonds, while decreasing the proportion of bonds with maturities under 1 year. As for the convertible bond premium rate, the median premium rate of convertible bond funds' holdings was 33.92%, a decrease compared to the previous quarter. Decrease in new FOFs issued compared to the previous quarter, increase in allocation to pharmaceutical funds In the fourth quarter of 2023, a total of 24 new FOFs were issued, a decrease of 6 from the third quarter of 2023, with a total issuance scale of 12.13 billion yuan, a decrease of 22 billion yuan from the third quarter. The market share of the top ten fund companies in terms of scale was 65.06%, slightly down from the third quarter. The highest increase in market value among the top ten stock-heavy funds was mostly in short-term and pure bond ETFs, while actively managed equity funds mainly increased their holdings in E Fund Pharmaceutical Biology, and mixed funds increased their holdings in Golden Eagle Dividend Value. In terms of industry thematic funds, FOFs reduced their holdings in balanced funds and increased their holdings in pharmaceutical funds. Risk warning: Disclosure of holdings does not constitute investment advice; past performance does not represent future performance; limited information in quarterly reports.