The mid-term trend of technology remains unchanged, with a significantly increased probability of a new upward profit cycle. The Southern A500ETF slightly increased on volume.

On May 20th, the South A500 ETF rose by 0.15%, with a slightly increased trading volume of 42.21 billion yuan. CITIC Securities believes that overall, the mid-term trend in technology remains unchanged, and the key point is the validation of performance in the semi-annual report. Historical data shows that after TMT trading volume exceeds 40%, there will be increased fluctuations but will maintain an oscillating upward trend. The negative impact of the H200 incident is limited, instead benefiting North American supply chains such as photovoltaic modules, and temporarily supplementing the domestic computing power gap, with the possibility of domestic computing power recovering after adjustments. In the future, focus on the dual main themes of "computing power + recovery", with a particular focus on AI, photovoltaic modules, PCB, storage chips, coal, coal chemical industry, industrial metals, grid equipment, humanoid robots, etc. Guotou Securities believes that it is important to realize that the market center is gradually moving higher. Currently, A-shares have transitioned from a liquidity-driven market to a fundamental-driven market based on the conversion of old and new energy. With the core new energy of technology and going global continuing to support, the probability of forming a new cycle of profit growth in the second half of 2026 according to the "30%-60%" law has greatly increased. Data shows that the China A500 index, closely tracked by the South A500 ETF, covers high-quality leading companies in the A-share market, focusing on the layout of new productive forces. With advantages in scale and liquidity, it is a powerful tool to assist in the layout of post-market opportunities. Investors can use the South A500 ETF and its linked funds to easily layout their investments.