china-portfolio-rebalance

Purpose

Perform A-share portfolio rebalancing — analyze allocation drift, generate rebalancing recommendations, and optimize trade execution.

Data Sources

Primary: iFind MCP (Tier-1 paid) / AkShare MCP (Tier-2 free alternative)

get_quote(ticker)                     → Current prices for holdings
get_historical_data(ticker)           → Tax lot / cost basis context

Secondary Sources

Portfolio management system
Wind / Choice — market data
Tax rules — A-share tax treatment

Workflow

Step 1: Current Allocation

Portfolio snapshot:

Asset Class	Target %	Current %	Drift	Market Value	Action

Within A-share equity:

Sector	Target	Current	Drift	Action
Consumer	XX%	XX%	±X%	Buy/Sell/Hold
Technology	XX%	XX%	±X%	Buy/Sell/Hold
Healthcare	XX%	XX%	±X%	Buy/Sell/Hold
Financials	XX%	XX%	±X%	Buy/Sell/Hold
New energy	XX%	XX%	±X%	Buy/Sell/Hold
Other	XX%	XX%	±X%	Buy/Sell/Hold

Step 2: Identify Drift

Drift thresholds:

Drift Level	Action
±2%	Monitor, no action
±3-5%	Consider rebalancing
±5%+	Rebalance recommended

Drift causes:

Market price movements
Dividend reinvestment
Previous trades
Cash flows (contributions/withdrawals)

Step 3: Generate Rebalancing Trades

Rebalancing logic:

Situation	Action
Sector overweight + price up	Trim position
Sector underweight + price down	Add to position
Overweight + price down	Monitor (may converge)
Underweight + price up	Monitor (may converge)

Trade list:

Action	Ticker	Security	Current %	Target %	Trade Amount	Est. Shares
Buy
Sell
Hold

Step 4: Tax Considerations

A-share tax treatment:

Item	Tax Rate	Notes
Stock trading price spread	Temporarily exempt (temporarily exempt)	Capital gains on stocks
Dividends	20% (halved/exempt for holdings >1 year)	Dividend tax
Fund distributions	Temporarily exempt (some funds)	Fund distributions
Trading stamp duty	0.05% (seller only)	Stamp duty

Tax-loss harvesting opportunities:

Position	Cost Basis	Current Value	Unrealized Loss	Tax Benefit

Tax-efficient selling:

Prioritize selling positions with losses
Consider holding period for dividend tax
Batch sales to minimize stamp duty impact

Step 5: Execution Plan

Trade sequencing:

Priority	Trade	Rationale
1		Tax loss harvesting
2		Largest drift correction
3		Smaller adjustments

Execution considerations:

Market impact (liquidity)
Trading costs (commissions, stamp duty)
Market timing (volatility)
Block trading for large positions

Step 6: Rebalancing Report

Standard rebalancing report:

【组合再平衡报告】[Client] [Date]

一、当前配置 vs 目标配置
   [Allocation table with drift]

二、再平衡建议
   [Trade list]

三、税务影响
   [Tax implications]

四、执行计划
   [Sequencing and timing]

五、预期效果
   [Projected post-rebalance allocation]

China-Specific Rebalancing Considerations

A-share Market Characteristics

Factor	Rebalancing Implication
Price limit restrictions	May prevent immediate rebalancing
T+1 settlement	Trade settlement timeline
Stamp duty	0.05% on sell side
Commission	Varies by broker (typically 0.02-0.03%)
Minimum fee	Minimum commission threshold

Tax-Loss Harvesting (A-share)

China-specific TLH:

Capital gains on stocks: currently tax-exempt (temporarily exempt)
Losses: can offset gains within the same asset class
Dividend tax: 20%, reduced to 10% for >1 year holding, 0% for >1 year (recent changes)
Fund distributions: tax treatment varies by fund type

Common Rebalancing Triggers

Trigger	Frequency	Action
Calendar rebalancing	Quarterly/Semi-annual	Systematic rebalance
Drift threshold	When ±5%	Opportunistic rebalance
Cash inflow	As received	Deploy to underweights
Client request	Ad-hoc	Targeted rebalance
Tax planning	Year-end	Harvest losses, reset cost basis

Quality Checks

Before executing:

Allocations calculated correctly
Trades aligned with policy
Tax implications assessed
Trading costs estimated
Client approval obtained
Execution plan sequenced

After rebalancing:

Trades confirmed
Allocation updated
Tax lots recorded
Client notified

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

ifind-only (strict): Use iFind only, error if unavailable

ifind-fallback (default): iFind preferred, fallback to AkShare

akshare-only: Skip iFind, use AkShare only