Last week, the Shanghai Composite Index briefly surpassed 3,700 points, hitting a new high for the phase, with capital actively flowing into core assets. As of August 15, the A500ETF Fund (512050), which tracks the CSI A500 Index, recorded a net inflow of 1.16 billion yuan over the past 10 trading days, reflecting strong market interest.
Data shows that the A500ETF Fund (512050) tracks the CSI A500 Index and employs a dual strategy of balanced sector allocation and top-tier stock selection. It covers all 35 subdivided industries under the CSI classification, combining value and growth attributes. Compared to the CSI 300, it overweights emerging productivity sectors such as the AI industry chain, biopharmaceuticals, power equipment & new energy, and defense & military, exhibiting a natural barbell investment characteristic. Off-exchange linked classes (Class A: 022430; Class C: 022431).
On the news front, the People's Bank of China released its Q2 2025 Monetary Policy Implementation Report. The report emphasized promoting a reasonable rebound in prices as a key consideration for monetary policy, aiming to keep prices at an appropriate level. It also highlighted further improvements to the interest rate regulation framework, strengthening the guiding role of central bank policy rates, refining the market-based interest rate formation and transmission mechanism, leveraging the self-regulatory mechanism for market interest rate pricing, and continuously enhancing the implementation and supervision of interest rate policies to reduce banks' liability costs and lower overall social financing costs.
Regarding the current market trend, the strategy team at East Money believes that a full bull market cycle typically consists of three phases: Phase 1 is primarily driven by declining risk-free rates, Phase 2 involves risk appetite recovery, and Phase 3 sees improved earnings expectations, which often ultimately pushes risk appetite to higher levels. The current A-share market largely aligns with Phase 2 characteristics, where the decline in risk-free rates is no longer significant, and the improvement in earnings expectations has not yet fully materialized.
