A-shares experienced volatile adjustments in the morning session. On the market, coal, gaming, and media sectors led the gains, while batteries, precious metals, semiconductors, and other sectors led the declines. As of 11:05, the CSI A500 Index fell 0.6%. Among related ETFs, E Fund A500ETF (159361) saw intraday net subscriptions exceeding 130 million units. As of yesterday, the product had net inflows of over 1.3 billion yuan in the past 10 trading days.
CITIC Securities stated that compared to the same 4000-point level in 2015, the current index composition is significantly better, and the valuation level is notably lower than back then, making it unnecessary to overly focus on the index point itself. With the conclusion of the Fourth Plenum, phased achievements in China-U.S. talks, and the completion of third-quarter earnings disclosures, structural opportunities still exist looking ahead.
Other analysis suggests that it is a market consensus that the index may climb higher next year with growth styles relatively outperforming. It is possible that allocation-oriented institutional funds, such as annuities and insurance, might front-run their layouts ahead of year-end, thus driving the year-end rally to start as early as November. Investors can seek a balance between avoiding the risk of overvaluation in growth stocks and the pressure of missing out, maintaining a moderately high to high position through broad-based ETFs tilted towards growth to welcome the year-end rally.
The CSI A500 Index consists of 500 stocks with large market capitalizations and good liquidity from various industries, covering 91 out of 93 CSI tertiary industries. It reflects the overall performance of representative companies across A-share industries from a balanced sector perspective. Emerging industries such as information technology, communication services, and healthcare have relatively high weights, balancing "core assets" and "new quality productive forces." Investors optimistic about balanced broad-based strategies can allocate through products like E Fund A500ETF (159361).
