The positive factors in the Chinese market are still accumulating, making use of the A500ETF fund for positioning.

On May 20th, as of the deadline for this article, the A500ETF fund rose by 0.32%, with a trading volume of 2.6 billion yuan. Guotai Junan Securities stated that positive factors in the Chinese market are still accumulating. Firstly, after a series of shocks, investors have a more comprehensive understanding of the economic situation, and consensus factors are gradually diminishing the impact on valuation contraction. The stance of "anchoring economic and social development goals" at the policy level and more sustainable policy expectations have become new variables. Secondly, the decline in risk-free interest rates in the Chinese stock market has reduced the attractiveness of fixed-income assets, making the stock market a key breakthrough in addressing the decline in social capital expenditure and the increase in asset management demand. The clear statement from the political bureau about "sustaining stability and promoting a lively capital market" signifies a positive shift in the policy environment. Lastly, the capital market reform focusing on "investors first, coordination of investment and financing" is accelerating, and the underlying tone of the Chinese market is gradually shifting towards "investment-oriented, focused on returns." Nomura Orient International Securities analysis believes that in the medium to long term, considering the pace of economic recovery, potential stimulus policies, it is worth paying attention to the main theme of domestic demand recovery. Industries with greater valuation elasticity include food and beverage, those with greater performance elasticity include real estate, and those with greater policy elasticity include pharmaceuticals, as well as service consumption related to domestic demand upgrading, essential quality consumption, and optional trendy consumption. Furthermore, it is important to grasp the trend of industrial iteration in high-growth technology sectors and focus on themes such as AI, energy storage, and long-cycle topics like domestic innovation and commercial aerospace. Investors can position themselves through A500ETF funds and their associated funds.