On the first trading day of the second half of the year, funds once again switched to high-dividend plate, ICBC, China Shenhua, Agricultural Bank of China, China Yangtze Power, Jiangsu Expressway, China Mobile, CNOOC, and Shaanxi Coal Industry hit a new historical high in intra-day trading.

The performance of the second half of the year is about to unfold. Looking ahead at the future performance of A shares, industry insiders believe that the intensive disclosure period for half-year performance forecasts will commence in mid-July. A few bright spots may become a sustained focus of the market in the third quarter. Some growth sectors have clearly reached a turning point in performance and may become a focus of investor allocation for the third quarter and beyond. For dividend strategies, the reduction in market risk appetite in the short term will continue to play a key role in absolute income.

CITIC Securities believes that three major signals await clarification and the market turning point will appear. Guotai Junan Securities stated that blue chips led by science and technology will rebound in July. Haitong Securities stated that the improvement of three major factors in the second half of the year is expected to push up the central market. Huatai Securities said that the 'seven-fold turnover' trend may still be expected, with A50 as a medium-term bottom position.

The FTSE China A50 Index was officially launched on January 2 this year. Selecting the 50 securities with the largest market value from the listed company securities of various industry bellwethers as index samples, it reflects the overall performance of bellwether listed company securities with representative in various industries. From the perspectives of market share, profitability, and historical performance, the constituent stocks of the FTSE China A50 Index have performed well and are recognized by the market as the flagship index representing core assets and bellwethers of a new generation.

On June 17th, the first day of adjustment since the launch of the FTSE China A50 Index, component stocks have changed. The original component stock Shanghai Jin Jiang International Hotels (with a weight of 0.19% on May 31) was removed, and Chaozhou Three-Circle(Group) was added.

Since the beginning of this year, as the representative of China's high-quality companies in economic recovery, with solid performance, attractive valuation levels, and policy advantages of the new 'Nine Articles of the State', core assets have won widespread attention from investors. Under this background, ETFs related to the FTSE China A50 Index, as a new tool for one-click allocation of core A-share assets, have also been favored by capital.

Since June, with the A-share market falling, some funds have entered via ETFs. As of June 28th, over 8.2 billion yuan of funds flowed into the FTSE China A50 ETF in June.Among them, the net amount of funds for ChinaAMC CITIC Securities FTSE China A50 ETF Fund, E Fund Management Co., Ltd. E Fund CITIC Securities Fund (A50ETF), Ping An of China Asset Management (Hong Kong) Co., Ltd. Ping An China A50 ETF, and Yinhua Fund Management Co., Ltd. Yinhua FTSE China A50 ETF amounted to 2.396 billion yuan, 2.226 billion yuan, 1.364 billion yuan, and 0.682 billion yuan, respectively.

As of June 28th, the total scale of the first batch of FTSE China A50 ETFs reached 30.142 billion yuan, an increase of 82% from the initial 16.526 billion on March 8th, with strong attraction of funds.

Morgan Asset believes that the FTSE China A50 Index has four advantages:

1. Policy advantages: In the new 'Nine Articles of the State', measures related to 'improving the quality of listed companies', 'strengthening cash dividend supervision', and 'attracting long-term funds to enter the market' may be long-term favorable to high-quality enterprises with excellent profitability and dividend capacity.

2. Leader advantage: With the clarity of economic fundamentals, industry bellwethers have resource concentration advantages, relatively stable profitability and expected sustained improvement, and may be the first to benefit during the period of economic stabilization.

3. Performance support: The disclosure of the financial report season and fund holdings and other information, the main line of core assets’ performance may be further strengthened, and blue-chip core stocks with longer-term stability may be more favored by funds.

4. Valuation repair: After experiencing a large decline for a long period of time, the valuation of core assets has entered the bottom area of history. For market value investors, attractiveness has increased, and opportunities for valuation repair may be ushered in.

Yinhua Fund stated that the current FTSE China A50 Index and A-share overall valuations are at a historically low level. The prominent moat effect and high growth of constituent stocks of the FTSE China A50 Index also coincide with the overall environment of earnings improvement.

Ping An Fund stated that individual stocks in the CSI A50 Index have characteristics such as good financial quality, strong willingness for corporate dividends, diversified industry allocation, and low volatility, making their long-term holding experience relatively good.