On September 8, A-shares showed mixed performance, with the CSI 500 Free Cash Flow Index fluctuating upward during the session. Constituent stocks such as Huafeng Chemical, Yunda Holdings, and Eastern Air Logistics led the gains. Among related ETFs, the Cash Flow 500 ETF (560120), currently the only ETF tracking the CSI 500 Cash Flow Index, followed the index upward and is now up over 0.5%, underscoring its allocation value.

Caitong Securities believes that the current market is benefiting from multiple positive factors, including policy support, industrial catalysts, overseas monetary easing, and new capital inflows, leading to an overall optimistic sentiment. Although the market has experienced short-term profit-taking and adjustments, the strength of the rebound indicates that market sentiment remains positive. The Shanghai Composite Index has risen over 10% since June, and increased expectations for overseas interest rate cuts have provided support to the domestic market. In the short term, the market pullback is unlikely to exceed 60% of the recent short-term gains, and the duration of the pullback may only be 2-3 weeks, demonstrating the market's resilience and potential upward momentum.

The Cash Flow 500 ETF (560120) closely tracks the CSI 500 Free Cash Flow Index. After screening for liquidity, sector, and ROE stability, it selects 50 stocks with positive and high free cash flow ratios. Overall, it exhibits characteristics of small to mid-cap market capitalization, lower valuation, and higher ROE. Additionally, the fund manager may conduct quarterly assessments and income distributions, arranging profit distributions when conditions for fund dividends are met.