The A-share market has been experiencing an upward trend since late September, with continuous active funds and accumulating long positions. Many newly established funds have also seized the pace and quickly established positions, resulting in significant changes in the net asset value of the funds. Some funds that buy into the technology sector have achieved returns exceeding 5% since their establishment. A group of recently established funds linked to the CSI 50 Component Index have achieved a return rate of over 80% this year. Multiple institutional insiders have stated that A-shares may be at the starting point of a new round of corporate performance recovery cycle, and a medium - to long-term upward trend is emerging. In terms of market structure, the crowding of small cap growth direction has reached a high level recently, and the subsequent market style may lean towards the overall market value. The rapid establishment of new funds has led to a rebound in the fund issuance market recently. As of November 6th, there have been over 120 fund issuances since October. Among them, the fundraising scale of multiple products tracking the CSI A500 Index has exceeded 3 billion yuan, and the fundraising scale of Guangfa CSI A500 Index Fund has reached nearly 8 billion yuan. In addition, the subscription period for 11 funds is only one day. In newly established funds, many fund managers choose to quickly build positions and enter the market quickly. For example, Yongying Technology Smart Selection A, established on October 30th, experienced a net asset value change on November 1st, with a unit net asset value of 0.9766 yuan on that day, indicating that the fund has quickly established positions. On November 5th, the net asset value of Yongying Technology Smart Selection A was 1.0263 yuan. Caitong Asset Management Advanced Manufacturing A, established on October 15th, also experienced a net asset value change on the second day of its establishment. On October 16th, the net asset value of the fund unit was 0.9999 yuan, and on October 17th, the net asset value of the fund unit was 0.9996 yuan, indicating a clear trend of "establishing a position immediately upon establishment". On November 5th, the net value of Unit A of Caitong Asset Management Advanced Manufacturing was 1.0624 yuan. Passive products can also quickly build warehouses and enter the market. The E Fund China Securities Photovoltaic Industry ETF, established on October 30th, had a unit net value of 1.0003 yuan on October 31st and 1.0076 yuan on November 5th. The Tianhong Beizheng 50 Component Index A, established on October 11th, began to show net asset value changes on October 18th. On November 5th, the unit net asset value of the fund was 1.1737 yuan. Some of the newly launched products have shown impressive performance, while many of the newly established funds this year have performed well. According to Wind data, as of November 5th, the returns of two new funds this year have exceeded 80%, namely Hua'an North Securities 50 Component Index A established on August 27th and China Europe North Securities 50 Component Index A established on May 10th, with returns of 85.48% and 85.33% respectively. In addition, the return rate of the Dongcai Beizheng 50 Index A this year has also reached 72.98%. The return rate of E Fund's ChiNext 200 Connect A reached 66.16%, while the return rate of funds such as the Southern Shanghai Science and Technology Innovation Board chip ETF exceeded 50%. Among the active equity funds, Guangfa Growth Qihang A, established on March 19th, has achieved a return rate of 42.27% this year. At the end of the third quarter, the top ten holdings of the fund included Meituan, Shanghai Electric Power Co., Ltd., Shiyun Circuit, Farah Electronics, Guangdong Hongda, etc. In addition, as of November 5th, the return rate of Golden Eagle Technology Zhiyuan A, established on March 19th, has reached 36.05% this year. The fund is managed by renowned fund manager Chen Ying. At the end of the third quarter, the top ten holdings of the fund were GoerTek, Yaoji Technology, Lianying Laser, Huanxu Electronics, Oat Technology, Lexin Technology, Changying Precision, Shanda Diwei, Hongruan Technology, and Kede Education. As of November 5th, the return rate of Allianz China Select A, established on September 3rd, has exceeded 30% since its establishment. The fund is managed by renowned fund manager Cheng Yu; Since its establishment on August 1st, Dongxing Growth Optimal Selection A has also achieved a return rate of over 30%. The main reason why fund managers are optimistic about the rapid establishment of positions in the future is that they are relatively optimistic about the future. Boshi Fund believes that in the context of a shift in policy direction, we should adhere to an optimistic approach and consider buying at low prices while retaining our bottom position. In terms of structure, the crowding of small cap growth direction has reached a high level recently, and the market style may lean towards the overall market value in the future. Before the upward trend of domestic demand becomes clearer, dividend assets are a cost-effective safe haven in high volatility environments. Fuguo Fund stated that whether the stock market can break through the volatile situation in the short term requires attention to the process of clarifying domestic fiscal policies. In the medium term, we need to wait for the policy to verify the effectiveness of economic recovery. From the supply side, data shows that non-financial capital expenditures of A-share listed companies have been in a negative growth range for two consecutive quarters, and the pressure on new production capacity is expected to ease in the future; From the demand side, with the gradual introduction and accelerated implementation of a package of incremental policies in China, positive factors are expected to continue to accumulate. The A-share market is currently at the starting point of a new round of corporate performance recovery cycle, and a medium - to long-term upward trend is emerging. In terms of industry allocation, Fuguo Fund stated that under the three-way "struggle" of company performance, interest rates, and policies, a "triangle" layout can be adopted: on the offensive side, focus on the logic of economic growth driving supply side improvement and the rise of a new round of industrial cycles, with a focus on semiconductor and AI computing power directions supported by performance, and new energy, military, innovative drugs and other directions that are expected to achieve a turnaround in difficulties; On the defensive side, fine selection can be made within dividend assets to explore central state-owned enterprise targets that are expected to benefit from a series of policies; At the intermediate level, focus on industries that benefit from stimulus policies and export advantages, such as home appliances, automobiles, machinery and equipment. Golden Eagle Fund stated that in terms of industry allocation, it can continue to balance its layout along the three directions of science and technology innovation, policy stable growth, and defensive dividend assets. (New Society)