According to data from the public fund ranking website, as of June 30, there were a total of 12,028 public funds in the market, with a total share of 29.67 trillion shares and a total asset size of 30.71 trillion yuan. Compared with the end of the first quarter, the number of public funds increased by 276, an increase of 2.35%; the share increased by 1.81 trillion shares, an increase of 6.49%; and the asset size increased by 1.87 trillion yuan, an increase of 6.47%. Specifically, compared with the end of the first quarter, the asset size of bond funds increased by 1.27 trillion yuan, an increase of 13.62%, becoming the type of public fund with the highest asset growth in the second quarter; followed by the asset size of money market funds, which increased by 0.70 trillion yuan, an increase of 5.58%. Other types of public funds that saw an increase in asset size in the second quarter include alternative investment funds, QDII funds, and REITS funds, with increases of 17.352 billion yuan, 18.489 billion yuan, and 11.626 billion yuan respectively, with increases of 32.84%, 4.42%, and 10.78%. However, the asset size of mixed funds, FOF funds, and equity funds decreased slightly in the second quarter compared to the first quarter, with decreases of 142.1 billion yuan, 7.427 billion yuan, and 1.03 billion yuan, respectively, with decreases of 4.10%, 5.06%, and 0.04%. In terms of positions, according to statistics, the median position of ordinary equity funds was 90.18%, and the median position of partial equity mixed funds was 88.47%, both slightly lower than the previous quarter, fluctuating around 90% since 2020. The median positions of ordinary equity funds and partial equity mixed funds are at historical percentiles of 68.97% and 74.14%, respectively. It is also worth noting that the positions of ordinary equity funds and partial equity mixed funds invested in Hong Kong stocks have increased significantly compared to the previous quarter. The changes in the positions of funds and the number of funds invested in Hong Kong stocks are as follows: The median position of ordinary equity funds invested in Hong Kong stocks was 16.24%, an increase of 2.46% from the previous quarter; the median position of partial equity mixed funds invested in Hong Kong stocks was 13.23%, an increase of 3.59% from the previous quarter. The positions of ordinary equity funds and partial equity mixed funds in Hong Kong stocks are at historical percentiles of 54.55% and 81.82%, respectively. There are 201 ordinary equity funds allocated to Hong Kong stocks and 1360 partially equity mixed funds allocated to Hong Kong stocks, with the number of funds allocated to Hong Kong stocks in ordinary equity funds and partially equity mixed funds accounting for 52.56%. In terms of industries, as of the second quarter of 2024, the technology sector still has the highest allocation weight, which has increased compared to the previous quarter, with the latest allocation weight standing at 32.96%. The second highest weighted sector is the large cycle sector, with a weight of 28.97%. In the second quarter of 2024, the consumer sector saw a significant reduction in allocation, decreasing by 3.8%, while the technology and large cycle sectors saw increased allocation, increasing by 2.44% and 1.87% respectively. The three industries with the highest allocation weight in the second quarter of 2024 were electronics, pharmaceuticals, and food and beverage industries, with allocation weights of 15.4%, 11.16%, and 9.5% respectively. The allocation weights of electronics, non-ferrous metals, machinery, and communications are relatively high, exceeding the 90th percentile, while the allocation weights of construction materials and real estate are relatively low. The top three industries with the most active increases in allocation were electronics, communications, and machinery, which increased by 2.2%, 0.98%, and 0.81% respectively. Meanwhile, the food and beverage, power equipment and new energy, and pharmaceutical industries saw the most active reductions in allocation, decreasing by 2.65%, 0.5%, and 0.33% respectively. As for individual stocks, the top three stocks with the most active increases in allocation were BYD (002594.SZ), Industrial Fulian (601138.SH), and Luxun Precision (002475.SZ), while the top three stocks with the most active reductions in allocation were Guizhou Maotai (600519.SH), Ningde Times (300750.SZ), and Luzhou Laojiao (000568.SZ). Huatai Securities released a review of the public fund second quarter report, stating that the position of public funds in the second quarter of 2024Q2 fell by 1.7 percentage points, but still remained at a relatively high level since 2016, indicating a continuing trend of increased concentration in allocation. TMT/dividend/export remains the main areas of increased allocation: 1) The TMT allocation coefficient has risen to the 55th percentile since 2016 (the same below), and communications/electronics are consistently increasing, with optical modules/fruit chains leading the way; 2) The dividend sector allocation coefficient increased compared to the previous quarter (at the 94th percentile since 2016), with utilities/coal showing relatively extreme positions, and the steel/oil and petrochemical allocation coefficients are at relatively high levels of 60% or above since 2016; 3) The export chain allocation coefficient is at the 55th percentile since 2016, with a decrease in light industry/ textiles and clothing and an increase in white goods in the second quarter of 2024.