Huajin Securities: In the fourth quarter, the holding of A-shares continued to rise, with more positions added in the non-ferrous metals and communications sectors.

Huajin Securities released a research report stating that the holding of A shares through the Stock Connect continued to rise in the fourth quarter, with the proportion of holdings in the main board slightly increasing and the proportion of holdings in cyclical sectors also increasing. Overall, in the fourth quarter of 2025, the total size of A-share holdings through the Stock Connect was close to 2.59 trillion yuan, an increase of 54.06 billion yuan compared to the previous quarter. The industries with the largest holdings in Q4 through the Stock Connect were electrical appliances (17.78%), electronics (13.91%), and non-ferrous metals (7.18%); the industries with the largest increase in holdings were non-ferrous metals, telecommunications, and basic chemicals, while the industries with the largest decrease in holdings were pharmaceuticals, food and beverage, and automobiles. Core assets such as Zhongji Innolight, Ping An Insurance, and Sieyuan Electric saw significant changes in foreign holdings, with a slight decrease in the concentration of the top 5 holdings. The bank expects that in the first quarter of 2026, the Stock Connect funds may continue to increase their holdings in core assets, technology, and cyclical industries. Huajin Securities' main points are as follows: 1. In the fourth quarter, the proportion of holdings in cyclical sectors by Stock Connect funds increased. 2. Holdings in sectors such as non-ferrous metals, telecommunications, and chemicals increased, while holdings in industries such as pharmaceuticals, food and beverages, and automobiles decreased. 3. Core assets and growth stocks such as Zhongji Innolight, Ping An Insurance, and Sieyuan Electric continued to be favored by foreign investors. 4. Stock Connect funds may increase their holdings in core assets, technology, and cyclical industries in the first quarter of 2026. 5. Recent catalysts for core assets, technology, and cyclical sectors include positive industry developments and policies. 6. Risks include unexpected policy changes and economic recovery falling short of expectations.