China is expected to become a global capital safe haven, Southern Funds are expanding through the A500ETF.

On March 17, the A500ETF of South Fund was active in trading, with a 0.08% increase in price and a trading volume exceeding 60 billion yuan. CITIC Securities stated that if the US-Iran conflict were to prolong, it could have three main impacts: firstly, the oil price may rise, global inflation may increase, and the pace of interest rate cuts by the Federal Reserve may be disrupted; secondly, the loosening of the oil-dollar system may accelerate, with China potentially becoming a global safe haven for capital and the RMB assets possibly benefiting; thirdly, it may spur strategic opportunities for China, with its dual energy base of "coal + new energy" not only ensuring its own energy security, but also potentially leading the global energy transition. In terms of industries, focus may be placed on coal, coal chemicals, power equipment, utilities, petroleum and petrochemicals, and the AI industry chain. Themes to watch may include lithium batteries, nuclear power, energy storage, and wind power. China Merchants Securities pointed out that in the short term, the continuous rise in oil prices leading to reflation trades and the delay in expectations of interest rate cuts by the Federal Reserve may have a certain impact on market risk appetite, causing A shares to continue to be volatile, with clear market structure differentiation and relative benefits in the resource sector. Also, under the expectation of a rise and turnaround in the producer price index (PPI), investor holding styles may further balance towards value, cyclical, and inflation-sensitive sectors. Data shows that the A500ETF of South Fund closely tracks the CSI A500 Index covering high-quality leading companies in the A-share large and medium cap market, distributed evenly in core sectors such as emerging manufacturing and consumption upgrades, with a focus on new productive forces. Investors may use the A500ETF of South Fund and its associated funds to strategically position themselves.