At its meeting on Wednesday, the Federal Reserve announced a 25-basis-point cut to the federal funds rate target range, bringing it down to 4.00%–4.25%. This decision was in line with broad market expectations, while the latest "dot plot" indicated that the Fed may still implement two more rate cuts within the year.

Industry insiders believe that the Federal Reserve's monetary policy adjustments "have far-reaching implications," often generating spillover effects on other countries' monetary policies. China's economy is operating steadily overall, with the attractiveness of RMB assets increasing. More foreign capital is flowing in to allocate RMB assets, driving up demand for foreign exchange settlement and pushing the RMB to appreciate. These factors also contribute to the marginal easing of financial conditions and improvements in the policy transmission environment in China.

The MSCI China A50 Connect Index has a high similarity with the distribution of northbound capital holdings. In terms of sector distribution data, its components are spread across industries such as electronics, banking, food and beverage, and power equipment. Based on the top ten constituent stocks, the top ten holdings are Contemporary Amperex Technology (CATL), Industrial Fulian, Zijin Mining, Kweichow Moutai, Cambricon-U, Hygon Information, BYD, Hengrui Pharmaceuticals, Zhongji Innolight, and China Merchants Bank.

A50ETF (159601) closely tracks the MSCI China A50 Connect Index, packaging 50 leading Connect targets in one click and providing balanced coverage of the performance of core leading assets in the A-share market. It is a preferred choice for both domestic and foreign capital.