PBOC Plans to Switch to Overnight Reverse Repos! Dividend Low-Volatility ETF Huatai-PineBridge Leads Peers with RMB 458 Million in Turnover

On October 22, the ChiNext Index fell more than 2% in the half-day session, while the Shanghai Composite Index fell 0.89%. Against this backdrop, the Dividend Low Volatility ETF Huatai-PineBridge fell 0.99% to 1.201 yuan, with a turnover rate of 1.49% and a half-day turnover of 458 million yuan, ranking first among comparable underlying ETFs. On the news front, the central bank announced that, based on the demand of primary dealers in open market operations, the volume of 7-day reverse repo operations on October 22, 2026 was zero. At the same time, it conducted 173 billion yuan of overnight reverse repo operations. In addition, the central bank governor proposed at the 2026 Financial Street Forum Annual Meeting that it will study the timing of switching the main open market operation instrument to overnight reverse repo, and the overnight reverse repo rate will become the main policy rate. CICC pointed out that in an environment where the elasticity of aggregate growth is limited, structural high prosperity coexists with increased volatility in market risk appetite, the "technology + dividend" barbell structure is expected to become an allocation choice that balances profit growth elasticity, shareholder cash returns, and portfolio stability. On the technology side, focus on enterprises with clear industry trends, long-term competitive advantages, and the ability to deliver earnings; on the dividend side, focus on high-quality companies with stable earnings and cash flow, sustainable dividends, and reasonable valuations. China Securities Co., Ltd. believes that at the allocation level, short-term allocation should use deterministic dividends to lock in the base position, use a light-holding structure to wait for style rebalancing, and use real assets to hedge the two-way risks of inflation and geopolitics. In terms of industries, focus on banks, non-bank financials, utilities, coal, oil, oil shipping, basic chemicals, hog farming, the AI industry chain, etc. Investors can use the Dividend Low Volatility ETF Huatai-PineBridge as a base position allocation, and investors without stock accounts can also allocate through its off-exchange feeder fund.