On May 31, A50ETF Huabao (159596) fell slightly by 0.1% with a turnover of 122 million yuan. Component stocks had mixed ups and downs; BYD rose 0.51%, CITIC Securities rose 0.32%; Zijin Mining fell 1.3%; Hengrui Pharmaceutical fell 1.21%. In terms of capital flow, the net inflow of capital has been “sucked in” over 200 million yuan for 5 consecutive trading days! Recently, many foreign investors have boosted Chinese assets, and in particular, the target prices of some leading companies have been raised several times. Wang Zonghao, head of stock strategy research at UBS China, said that while the current macroeconomic environment of the A-share market is close to the situation in 2015 and 2016, the fundamentals of listed companies are better than those in 2015 and 2016, and there is still a lot of room for improvement in valuations. Currently, the market is in the process of consolidating upward. Societe Generale Securities believes that in the long run, relative changes in performance are a strong guide to the relative performance of stock prices. Currently, whether it is the net profit growth rate, ROE level, or revenue concentration, the profit advantage of leading companies is being highlighted. Therefore, the leader will remain an important source of excess earnings, and the united front of core assets is being reshaped.