On January 18, Ruixuan Fund, a public fund under the Ruixuan Fund, released its quarterly report for 2023. In terms of fund size, all four funds under Ruixuan saw varying degrees of decline in size. The Ruixuan Growth Value Fund managed by Fu Pengbo saw a decrease from 208.13 billion yuan in the third quarter to 185.06 billion yuan; the Ruixuan Balanced Value Fund managed by Zhao Feng saw a decrease in size from 120.28 billion yuan to 108.23 billion yuan over the course of three years. In addition, the Ruixuan Growth Value Fund managed by Rao Gang saw a decrease in size from 66.08 billion yuan in the third quarter to 58.72 billion yuan, and the Ruixuan Stable Yield Enhanced Fund managed by Hou Zhenxin saw a decrease in holdings from 1.31 billion yuan to 0.85 billion yuan over a period of 30 days. All four funds have heavy holdings in China Mobile. In terms of fund holdings, in the fourth quarter of last year, the stock position of the Ruixuan Growth Value Fund was 88.49%, which decreased by less than 3 percentage points compared to the end of the previous quarter. The top ten heavy holdings included China Mobile, Ningde Times, Luxshare Precision, Tongwei Co., Ltd., Sinobioway Biomedicine, Guanghui Energy, Sanan Optoelectronics, Megmeet, Eastern Yuhong, and Wanhua Chemical. Compared to the end of the third quarter of last year, Megmeet was a new heavy stock. Looking at the shareholder list of Megmeet, the Ruixuan Growth Value Fund further increased its holdings of Megmeet in the fourth quarter of last year, with an increase of approximately 1 million shares compared to the end of the previous quarter. The stock position of the Ruixuan Balanced Value Fund over three years was 90.26% at the end of the fourth quarter of last year, which remained unchanged from the end of the third quarter of last year. In the holdings of the Ruixuan Balanced Value Fund over three years, the proportion of Hong Kong stocks was higher compared to the Ruixuan Growth Value Fund, at 37.43%. The top ten heavy holdings included Hong Kong stocks such as China Mobile, Tencent Holdings, Sino Source Electric, Sinobioway Biomedicine, Ningde Times, Wanhua Chemical, Weiming Environmental Protection, Eastern Yuhong, Country Garden Services, and China Resources Beer, with no changes in holdings compared to the end of the third quarter of last year, only some adjustments in holdings. The Ruixuan Steady Advance Configuration Fund over two years, which is a partial bond hybrid fund, had a stock position of 24.07%, which dropped by nearly 10 percentage points compared to the end of the previous quarter. The holdings of stocks mainly included China Mobile, Sino Source Electric, Ningde Times, Tencent Holdings, Weiming Environmental Protection, China Shenhua, Tonglian Precision, Yangtze Power, and Midea Group. The proportion of convertible bonds held in the fund's net assets was 10.83%, also decreasing from the end of the previous quarter. The future market may witness structural market conditions. The fund managers of the Ruixuan Growth Value Fund, Fu Pengbo and Zhu Lin, pointed out in their quarterly report that in the fourth quarter, the market continued to shift from growth to value, which has a certain rationality. In an environment of slowing economic growth, high growth will become scarce. Data shows that companies with earnings compound growth rates exceeding twice the nominal GDP growth rate make up around 10% of all listed companies within a certain period. If the center of nominal GDP growth is at 5% in the future, it means that companies with earnings compound growth rates exceeding 10% are among the top performers in the growth sector. On the other hand, for value stocks, if the dividend yield can reach around 7%, along with a slight profit growth, investors can expect a return of around 10%. Fu Pengbo emphasized that, with similar expected return rates, value stocks with a bird in hand seem more attractive compared to growth stocks with two birds in the bush. Looking ahead, the economy is likely to return to steady growth, and industry cycles will remain normal. Overseas demand will only benefit prepared companies, and the market will continue to unfold in a structural pattern. Apart from seizing the bird in hand, we will also dance with the cycle while managing risks. The fund manager of the Ruixuan Balanced Value Fund, Zhao Feng, also believes that the economy is likely to return to steady growth in the future, and industry cycles will remain normal. Overseas demand will only benefit prepared companies, and the market will continue to unfold in a structural pattern. The fund managers of the Ruixuan Steady Advance Configuration Fund over two years, Rao Gang and Hou Zhenxin, stated that looking ahead to 2024, the favorable conditions facing China's development outweigh the unfavorable factors. The basic trend of economic recovery and improvement has not changed, but there is still uncertainty in terms of the structure, pace, and magnitude of the recovery. Therefore, it is important to actively respond to changes in the macro environment with a cautious and optimistic attitude, guiding the selection of asset allocation as the benchmark assumption for investment in 2024. With the current relatively low valuation levels in China's stock market, a positive attitude towards the uplift of the stock market and structural opportunities is maintained. Regarding bonds, given the current high real interest rates and the temporary absence of inflation constraints on monetary policy, bonds still present good investment value.