Awaiting the new wave of trading pulse.

Tianfeng released a research report stating that the market experienced a rise at the beginning of December followed by a period of volatility, with trading activity decreasing compared to the previous period, awaiting a new round of trading impulses. Public funds: slow issuance of equity funds. Private securities funds: positions remain low. Northbound funds: trading activity continues to decline. Margin financing: significant decrease in net inflows, decrease in activity. Insurance funds: net inflow trend since the beginning of the year expected to continue. Bank wealth management: increase in number of issuances, decrease in equity allocation. Industrial capital: decrease in scale of reductions in December. Three major institutional fund flow indicators: significant decrease in trading impulses in December. Key points from Tianfeng: Public funds: slow issuance of equity funds. In December 2024, the newly established equity-focused public funds amounted to 37.204 billion shares, a decrease of 71.815 billion shares from the previous month, accounting for 77.78% of the past 3 years, with a significant decrease in equity fund issuance volume in December. Looking at the structure, actively-managed equity funds had a new issuance of 8.722 billion shares in December, an increase of 4.592 billion shares from the previous month; passively-managed equity funds had a new issuance of 27.471 billion shares, a significant decrease of 76.226 billion from the previous month. Stock ETFs had a net purchase amount of 49.222 billion yuan in December, a 2.35% increase from the previous month, with a significant net purchase amount for specific products such as the CSI A500 ETF. Private securities funds: positions remain low. The scale of private securities funds in December was 5.21 trillion, basically unchanged from the previous month. In terms of new issuance of stock products, there were 763 new issuances in December 2024, an increase of 271 compared to November, still at historically low levels. In terms of positions, the average position for long positions in private equity stocks in December was 55.79%, an increase of 0.81% from November, placing it at the 11.1% percentile since 2010. Overall, the position of private equity funds shows signs of stabilizing at the bottom, reflecting improving policy expectations, which may lead to a gradual flow of funds into the equity market. Northbound funds: trading activity continues to decline. In December 2024, the monthly trading volume of northbound funds reached 3.81 trillion, a decrease of 23.73% from November's 5.00 trillion, with northbound trading volume accounting for 10.75% of total A share trading volume, a decrease of 1.34% from the previous month. Foreign trading volumes are starting to shrink, with trading ratios continuing to decline, indicating that foreign investors may have taken profits and are waiting for the next round of policy expectations to unfold. Margin financing: significant decrease in net inflows, decrease in activity. As of the end of December 2024, the total balance of margin financing on the exchange was 1.86 trillion, an increase of 1.10% from the previous month, with financing balance at 1.85 trillion, an increase of approximately 1.11% from the previous month. Margin financing had a net inflow of 19.977 billion yuan in December, with a participation rate of 9.36%, and trading activity of margin funds had converged compared to the previous month. Insurance funds: trend of net inflow since the beginning of the year expected to continue. In Q3 2024, property and life insurance companies held equity assets with a net increase of 332.7 billion yuan, with a cumulative net increase of 638.79 billion yuan since the beginning of the year, indicating a continued inflow trend of insurance funds into the A-share market. In addition, since the Third Plenary Session of the Seventh Central Committee in July, the policy support for the insurance industry has significantly strengthened, making it easier for insurance funds to enter the market, and the pace of relevant funds entering the market is expected to accelerate further. Bank wealth management: increase in number of issuances, decrease in equity allocation. In terms of the starting date of revenue, there were 5,800 wealth management products issued in December 2024, an increase of 11.26% from November; with 2,200 issuances reaching maturity, an increase of 12.76% from the previous month. In terms of equity products, the proportion of new equity wealth management products in December was 0.15%, a decrease of 0.50% from the previous month, with an overall decrease in the equity allocation of wealth management funds. Industrial capital: decrease in scale of reductions in December. Overall, industrial capital had a net decrease of 20.676 billion yuan in December, with an increase of 9.426 billion and a decrease of 30.102 billion, averaging a net decrease of 9.40 billion per trading day, a decrease in reduction scale compared to the previous month. Three major institutional fund flow indicators: significant decrease in trading impulses in December. As of December 31, 2024, the value of the three major institutional fund flow indicators was 0.06, at the 55.8% percentile since the end of 2015. With the decrease in trading activity, awaiting a new round of trading impulses. Risk warning: Public data may lag behind, capital market policies may change unexpectedly, and domestic and foreign situations may deteriorate unexpectedly.