The low-dividend wave ETF from Huatai-PbR saw a transaction volume of 447 million in half a day, leading its peers as institutions engage in heated debates about the bottoming phase of A-shares.

On August 7, the A-share market fluctuated upwards, with the ChiNext index leading the gains. By the midday close, the ChiNext index had risen by 1.75%, and the Shanghai Composite Index was up 0.49%. Against this backdrop, the low-volatility dividend ETF from Huatai-PB fell by 0.86%, closing at 1.156 yuan, with a turnover rate of 1.39%, and half-day trading volume reaching 447 million yuan, ranking first among similar ETFs. In terms of news, state-owned major banks and several joint-stock banks have recently resumed issuing large-denomination time deposits with a five-year maturity, while local small and medium-sized banks have also been actively launching large-denomination time deposit products. In comparison, small and medium-sized banks clearly have interest rate advantages, but their products are predominantly short to medium-term, with the longest maturity typically being three years. Yan Xiang, Chief Economist at Founder Securities, believes that for Chinese assets, tightening external liquidity may negatively impact equity assets through valuation pressures and increased volatility. However, for the A-shares, changes in external liquidity are not the decisive factor for market direction; the domestic policy orientation and fundamental conditions are the primary factors driving the A-share market. For future asset allocation, it is recommended to focus on sectors with strong certainty of profit at the molecular level to hedge against valuation pressure, or to allocate assets with defensive attributes that can provide stable cash returns to cope with volatility. Key areas of focus include: first, technology and high-end manufacturing sectors with global competitive advantages; second, resource sectors benefiting from price increase logic; and third, undervalued, high-dividend, defensive assets. Zhongtai Securities pointed out that the current market's determining factor still lies within the global AI cycle. The market is in a period of fluctuation and bottoming out until mid-August, and liquidity release ahead of the China-U.S. presidents' meeting at the end of September is expected to drive the market upwards. In the short term to mitigate drawdowns, attention should be paid to dividend stocks closely related to core assets of Chinese manufacturing, such as energy chemicals, engineering machinery, and electric equipment. Investors can consider the Huatai-PB low-volatility dividend ETF as a core allocation, and those without stock accounts can also allocate through its off-exchange connected funds.