Today, there is a fierce struggle over the 2900-point mark in A shares. A shares fell below the 2900-point mark in morning trading, prompting large capital to enter into multiple Shanghai and Shenzhen 300 ETFs with significant trading volumes. A shares have then recovered, rising back up past the 2900-point mark.

By the close of morning trading, Huatai Bairui Fund's Shanghai and Shenzhen 300 ETFs had a turnover of 277 billion yuan, whereas the entire previous day's turnover was 324 billion yuan. Meanwhile, the turnover of E Fund's Shanghai and Shenzhen 300 ETFs and Jiashi Fund's Shanghai and Shenzhen 300 ETFs were 1.05 billion yuan and 0.926 billion yuan respectively, both exceeding the previous day's overall trading volume.

At the beginning of the afternoon session, the Shanghai Composite Index once again fell below the 2900-point mark in the last half hour of trading. The Shenzhen Component Index and the ChiNext Price Index both dropped by over 1%, while four Shanghai and Shenzhen 300 ETFs continued to trade with significant volumes, with turnover exceeding that of yesterday for the broad-based ETF, as well as for the Shanghai A50 ETF, ChinaAMC Shanghai A50 ETF, and China Southern CSI 1000 ETF.

By the end of today's trading, Huatai Bairui Fund's Shanghai and Shenzhen 300 ETFs, E Fund's Shanghai and Shenzhen 300 ETFs, Jiashi Fund's Shanghai and Shenzhen 300 ETFs, and Huaxia Fund's Shanghai and Shenzhen 300 ETFs each had a turnover of 519.6 billion yuan, 203.5 billion yuan, 166.2 billion yuan, and 599 million yuan, respectively, all exceeding yesterday's turnover. In particular, E Fund's Shanghai and Shenzhen 300 ETFs and Jiashi Fund's Shanghai and Shenzhen 300 ETFs saw a trading volume that was 1.3 times greater than that of yesterday.

Huaxia Fund's Shanghai A50 ETF had a turnover of 2.439 billion yuan today, a 40% increase compared to yesterday's 1.748 billion yuan.

Nanfang Fund's CSI 500 ETF and Jiashi Fund's CSI 500 ETF each had a turnover of 1.551 billion yuan and 591 million yuan, respectively, a 31% and 89% increase compared to yesterday's trading volume.

Nanfang Fund's CSI 1000 ETF and Huaxia Fund's CSI 1000 ETF had a turnover of 986 million yuan and 0.6 billion yuan, respectively, a 50% and 78% increase compared to yesterday's trading volume.

Since the A shares fell below the 3000-point mark on June 21, a mysterious fund has stepped in to support the market with abnormal trading volumes in multiple Shanghai and Shenzhen 300 ETFs, culminating in a historical record-high turnover of 28.981 billion yuan on July 19.

From the perspective of ETF fund flows, from June 21 to July 23, Huatai Bairui Fund's Shanghai and Shenzhen 300 ETFs, E Fund's Shanghai and Shenzhen 300 ETFs, Jiashi Fund's Shanghai and Shenzhen 300 ETFs, and Huaxia Fund's Shanghai and Shenzhen 300 ETFs had a total net inflow of 51.222 billion yuan, 22.888 billion yuan, 19.938 billion yuan, and 23.72 billion yuan, respectively, with a total net inflow scale of up to 128.768 billion yuan.

Based on the Q1 and Q2 fund report data released by the Shanghai and Shenzhen 300 ETFs this year, according to the estimated average transaction price in Q1, Central Huijin has increased its holdings of the aforementioned four Shanghai and Shenzhen 300 ETFs by more than 31 billion yuan. In Q2, these ETFs were purchased with a total cost of approximately 3.0276 billion yuan.

In the case of strong fund protection, how should the future trend of A shares be judged?

The CICC strategy team believes that the restorative market since February has faced setbacks but has not yet ended. Currently, the overall valuation of the A-share market is still at a historical bottom stage, and with the combination of stable economic growth policies and the long-term reform dividend in the second half of the year, there is no need to be pessimistic about the future performance of A shares.

In terms of specific allocation directions, the CICC team believes that during the mid-year financial report disclosure period, sectors and stocks with earnings better than market expectations are expected to have relatively good performance. With increasing prosperity, combined with reform and policy support, there is a focus on technology innovation, especially in the sectors with independent industrial logic. Foreign demand remains resilient, and in this context, there are opportunities to continue configuring industries in the export chain and globally priced commodity sectors. The long-term logic of dividend assets has not changed, but we need to pay more attention to the underlying fundamental aspects and the sustainability of dividends.