A500ETF Southern strength rose sharply by 3.7%, with institutions stating that risk appetite is stabilizing and style may return to growth.

On April 8, the A-share market saw a significant increase in trading volume, presenting a general trend of rising prices. As of the time of publication, the A500ETF of Southern Fund surged by 3.71%, with a turnover of 55.67 billion yuan, highlighting its liquidity advantages. Huatai Securities stated that on the style level, in the short term, the market value may still have an advantage, but the relative value of growth has improved. After the stabilization and rebound of risk appetite, it may gradually return to growth. At the industry level, it is suggested to control positions in the short term, leaving room for further defensive and low correlation allocations, such as dividends, some oversold AI computing power, and innovative drugs; in the medium term, layout around the power chain and economic prosperity clues on the dip. Industrial Securities believes that for April, more attention should be paid to the establishment of the "market bottom" and opportunities for bottoming layout, as well as the opportunity for the market to gradually return to normalcy and initiate a recovery trend with "I am the main protagonist" after substantial negotiations between the two parties. In terms of allocation, it is important to search for high-quality assets that have been "wrongly killed" by emotional inertia in this round of conflicts and gradually focus on a holding structure towards economic certainty. This is not only the core allocation strategy for the April performance disclosure period but will also be the logical change that the market needs to repeatedly strengthen awareness and increase emphasis on after the change in pricing environment this year. The Zhongzheng A500 Index, closely tracked by the A500ETF of Southern Fund, covers high-quality leading A-share companies in the large and medium size range, evenly distributed in core areas such as emerging manufacturing and consumption upgrades, and focuses on new productive forces. Investors can take advantage of A500ETF of Southern Fund and its related funds for easy layout.