Huaxi Strategy: The rise of A-share bank index is related to the new regulations on public fundraising.

Huaxi Strategy's report "Analysis of the correlation between the rise of A-share bank index and the new regulations of public funds: valuation repair logic under the dilemma of low allocation": 1. Policy background: The new regulations of public funds guide asset allocation to approach the Shanghai and Shenzhen 300 indexes. The revised version of the "Administrative Measures for the Operation of Public Funds" to be implemented in 2025 requires: 1) Performance benchmark constraints: The deviation of the investment portfolio of actively managed equity funds from the performance benchmark (mainly the Shanghai and Shenzhen 300) should not exceed 10%; 2) Style drift supervision: Funds with a deviation from the benchmark of over 20% in the long term will be closely monitored; 3) Industry allocation disclosure: Quarterly reports need to provide detailed explanations of the differences between industry allocations and benchmark indexes, as well as adjustment plans.