Fourth quarter portfolio adjustment in progress: "Professional buyers" favor two major directions.

Entering the fourth quarter, fund managers are more cautious in their investments, reducing their allocation to actively managed equity funds, increasing their investment in index-enhancing products, and increasing exposure to volatile sectors such as technology and non-banking financials. According to Choice data, the equity fund index fell by 2.21% in October, while the ordinary stock fund index fell by 2.04%. Yuexin Securities data shows that considering the investment difficulty in the fourth quarter, equity fund managers increased their allocation to enhanced index funds in October and reduced their allocation to actively managed equity funds. Analysts from Yingmi Fund's "Wait and See" team believe that the A-share market often experiences a "rebalancing trend" in the fourth quarter, where institutional investors seek to realize profits from varieties with significant gains throughout the year, leading to adjustments in related sectors, while weaker sectors may see a rebound.