On October 24th, Zhong Geng Fund disclosed its third quarter report, with several funds experiencing significant net redemptions. With the departure of renowned fund manager Qiu Dongrong, Zhong Geng Fund saw over 2 billion units of net redemptions in the third quarter. Among them, Zhong Geng Value Leading is the largest fund under Zhong Geng Fund's management, with an asset size of 4.689 billion yuan at the end of the third quarter. The total units of this fund decreased from 2.258 billion units at the beginning of the quarter to 1.924 billion units at the end, with over 300 million units net redeemed in the third quarter. The net asset value growth rate of Zhong Geng Value Leading Fund in the third quarter was 10.4%, underperforming the benchmark return rate of 11.73%. Specifically, Zhong Geng Value Leading maintained a high stock position at the end of the third quarter, with a stock position of 92.79%. The top ten holdings of Zhong Geng Value Leading at the end of the third quarter were: Leaf Pharmaceutical (02186), Zero Run Car (09863), China Hongqiao (01378), Lihua Shares (300761.SZ), Yuexiu Property (00123), Alibaba-W (09988), Muyuan Shares (002714.SZ), Western Mining (601168.SH), Hubei Yihua (000422.SZ), and China Xia Airlines (002928.SZ). In the third quarter, the top holdings of Zhong Geng Value Leading also underwent adjustments, with Alibaba-W, Muyuan Shares, and Western Mining entering the top ten holdings, while Saiteeng shares, China Overseas Development, and Chuanyi shares exited the top ten holdings. In terms of performance, in the third quarter, the net asset value growth rate of Zhong Geng Value Leading Fund was 10.4%, underperforming the benchmark return rate of 11.73%. In the third quarter report, Zhong Geng Value Leading pointed out that the economic expectations at the end of the third quarter suddenly halted the strong trend of the equity and bond markets. The 10-year treasury yield rose from a new low of 2.0% to 2.15% at the end of the quarter, while the equity market reacted even more sharply, with stock indices rising by over 25% in the last 5 trading days of the third quarter. The risk premium of the fund's benchmark index, the CSI 800 stock index, fell to 0.56 times standard deviation, at a historically neutral to slightly high level. Valuation indicators such as PB, dividend yield, and debt-to-equity ratio show that the valuation level of equity assets is relatively low, still offering a good potential for returns. The valuation starting point of Hong Kong stocks is lower, with better performance in the third quarter. The overall valuation of Hong Kong stocks has risen to a neutral level, but Hong Kong stocks benefit more from the recovery of the Chinese economy, with some companies having scarcity and stronger competitiveness, and experiencing fewer irrational disturbances in trading, making it worth continuing to be overweight. The fund's key investment directions include: - Industries with supply-side contraction or rigidity, resilient demand side, and even some growth potential, such as the resources sector represented by basic metals. - Sectors benefiting from policy shifts, where the expectation of asset deflation weakens, and sectors driven by improved consumer confidence in real estate, consumption, and other domestic demand sectors. - Industries with a significant decrease in corporate capital expenditure, large improvement in free cash flow, such as some utilities, breeding, and other sectors. - Industries with strong business growth attributes and significant future growth potential, such as pharmaceuticals, smart electric vehicles, and other technology stocks.