Huachuang Securities points out that amid changes in economic operation models, the long-term pricing logic of the stock market will shift toward the accumulation of back-end cash flow. Under a low-interest-rate environment, the compound interest effect of stable free cash flow becomes the cornerstone of long-term bull markets. In a stock economy, the compound interest miracle created by free cash flow is particularly critical—even in scenarios of zero profit growth, assets with robust free cash flow generation capabilities (e.g., controlled capital expenditures, cost management, and efficient working capital) can sustain their value. If physical reflation makes a strong comeback, the growth attributes of free cash flow are equally promising. Consumer leaders, benefiting from increased market concentration, are expected to deliver stronger cash flow generation than the industry average, while cyclical resources may see cash flow recovery under anti-involution policies. The current transition period between market phases presents a window for long-term capital to accumulate dividend opportunities.

Cash Flow ETF (159399) tracks the FTSE China A Share Free Cash Flow Focus Index (888888), which selects A-share listed securities with stable free cash flow, sound financial health, and ample cash flow as index components. It spans multiple sectors with a value-oriented style allocation to reflect the overall performance of high-quality cash flow enterprises.

Investors without stock accounts may consider Guotai FTSE China A Share Free Cash Flow Focus ETF Connect A (023919) or Guotai FTSE China A Share Free Cash Flow Focus ETF Connect C (023920).

Note: Any mentioned stocks are for reference only and do not constitute investment advice. Short-term fluctuations and historical performance of indices/funds are for analytical purposes and do not predict future results. Market views may change with conditions and do not represent investment recommendations or commitments. Indices cited are for reference only and do not guarantee fund performance. When purchasing fund products, select those matching your risk tolerance. Funds carry risks; invest cautiously.