On September 23, the three major A-share indices opened slightly higher and then diverged. The MSCI China A50 Connect Index, which represents core leading assets, rose against the trend by approximately 0.65%. Among its constituents, Luxshare Precision rose over 8%, followed by gains in Zhongji Innolight, Agricultural Bank of China, Industrial Fulian, etc.

UBS examined the speed of global fund rotation into emerging markets (EM) using five key indicators and found that the average daily turnover of both "Northbound Connect" and "Southbound Connect" in Chinese stocks hit record highs this month (the former reaching 1.6 times the level of October 2024), indicating active cross-border capital flows. However, retail investor funds are far from overheating: the margin balance as a percentage of market capitalization is only half of the 2015 peak, and bank deposit size exceeds the A-share market capitalization by approximately RMB 59 trillion (10-year average: RMB 30 trillion). Given that valuations remain attractive, UBS maintains an overweight view on MSCI China within its EM framework.

A50ETF (159601) closely tracks the MSCI China A50 Connect Index, packaging 50 leading Connect targets in one click and providing balanced exposure to the performance of core leading assets in the A-share market, making it a preferred choice for both domestic and foreign capital. Compared to other "Nifty 50" indices in the market, the MSCI China A50 Connect Index places greater emphasis on liquidity and sector balance during its compilation process, with significant large-cap characteristics.