On November 20, A-share indices collectively opened higher, led by the Nvidia supply chain, with themes like CPO, semiconductors, fintech, AI applications, and lithium batteries performing actively. As of 10:22, the CSI A500 Index rose by 0.12%, and the A500ETF Fund (512050) tracking this index saw its turnover quickly exceed 17 billion yuan. Holdings such as Tianhua New Energy surged over 11%, while China Mineral Resources, Yongxing Materials, Yahua Group, Salt Lake Co., and several others rose over 5%.

Recently, multiple foreign institutions have released their 2026 outlook reports, collectively expressing optimism about the medium-to-long-term allocation value of Chinese stocks. Among them, UBS, Morgan Stanley, and others have raised their target levels for relevant Chinese market stock indices. While voicing optimism for Chinese assets, foreign institutions have been continuously conducting research and increasing their positions, actively investing in Chinese assets.

Industrial Securities pointed out that since November, structural "rebalancing" has become a common feature in global stock markets, meaning funds have rotated from the previously leading tech sector to lower-positioned sectors like resources, consumption, and pharmaceuticals. For A-shares, after overseas disturbances accelerated internal "rebalancing," the two approaches for positioning in next year's growth expectations remain unchanged: first, the technology growth direction, focusing on lower-positioned AI software applications, defense, pharmaceuticals, etc., and valuing potential valuation repair opportunities in AI hardware; second, the pro-cyclical direction, focusing on resource products with rising prices (chemicals, steel, building materials), new consumption and service consumption, agriculture, etc.

The A500ETF Fund (512050) helps investors deploy into A-share core assets with one click, capturing the dividend of rising A-share valuations. This ETF boasts core advantages such as low fees (total expense ratio only 0.2%), good liquidity (average daily turnover over 5 billion yuan in the past month), and large scale (AUM exceeding 19 billion yuan). It tracks the CSI A500 Index, employing a dual strategy of balanced sector allocation and selecting leading companies. It covers all 35 CSI sub-sectors, integrating value and growth attributes. Compared to the CSI 300, it overweight sectors representing new productive forces like the AI industry chain, pharmaceuticals and biotechnology, power equipment & new energy, and defense, giving it natural barbell investment characteristics.