Long-term capital entering the market accelerates, low interest rate environment boosts the allocation of risky assets, A500ETF fund receives a single day net inflow of 458 million yuan.

On May 15th, the A500 ETF fund was active in trading, with a turnover of 25.5 billion yuan as of the deadline. Its liquidity ranked first among similar products. In terms of fund flows, it received net purchases of 4.58 billion yuan yesterday, with the latest number of shares at 18.317 billion, and a scale of 174.96 billion yuan. Zhang Kaifeng, an analyst at Minsheng Securities, believes that in the background of downward pressure on long-term interest rates, insurers are expected to increase equity investments to enhance investment flexibility and asset-liability matching capabilities. However, this also means that insurers need to be more cautious in facing market risks, strengthen their investment research capabilities and risk control systems, and raise higher requirements for the overall equity investment system of insurers. Considering the rigid constraints on the liability side of insurers and their investment style, insurers are expected to focus on allocating assets with high dividends, high ROE, and strong counter-cyclicality, and gradually increase their allocation to constituent stocks of the CSI A500 index. Investors can take advantage of the A500 ETF fund and its associated funds for positioning.