On Friday, A-shares plunged sharply again, with the Shanghai Composite Index falling by 1.45%, the Shenzhen Component Index dropping by 2.62%, and the ChiNext Price Index falling by 3.91%. Looking at the weekly changes, the SSE Composite Index, Shenzhen Component Index, and ChiNext Price Index fell by 3.52%, 3.7%, and 3.36% respectively. The CSI 500 Index, and CSI 300 both fell by 3.56% and 3.29% this week. The SSE Science and Technology Innovation Board 50 Index, and SSE Science and Technology Innovation Board 100 Index both fell by 3.78% and 4.3% this week.

Guolonghui's latest weekly performance report for the top ten core ETFs in 2024 with a "Global Vision, Betting on China" theme is out. The Southeast Asia Technology ETF performed the best this week, leading with a 1.77% increase. The Nasdaq ETF slipped slightly by 0.96%, while the E Fund CSI 100 ETF Huaxia (588800) corrected by 4% this week, surging over 47% since September 24th.

01. Contrarian investment in the E Fund CSI 100 ETF Huaxia (588800).

The E Fund CSI 100 ETF Huaxia (588800) corrected by 4% this week, surging over 47% since September 24th.

Recently, the market's high stock continued to plunge, experiencing a consecutive loss effect, with imbalances and plunges in high-end stocks, causing traders to fear high emotions, lack of main trends, quick rotation, which also signals the arrival of a short-term adjustment.

This week, the previously strong semiconductor sector oscillated weakly for two consecutive days. On Friday, the photovoltaic sector could not sustain the retracement, to some extent dragging down technology stocks. However, there are still structural highlights in the market, with impressive performances in AI applications. Sora concept, education, short drama games performed against the trend, which is why the sse science and technology innovation board 100 ETF Huaxia (588800) has a controllable withdrawal rate.

Although in the first four trading days of this week, the 10 ETF products tracking the sse science and technology innovation board 100 index saw a total net outflow of 2.074 billion yuan, the sse science and technology innovation board 100 ETF Huaxia (588800) still attracted a net inflow of 51.37 million yuan, being the only ETF among the 10 similar products with a net capital subscription.

Overall, policy expectations are still the key to A-share performance. Starting from September 24, A-shares have experienced a significant increase, mainly achieved by the continuous positive policy stance and the continuous inflow of incremental funds from multiple factors.

The medium and long-term market trend depends on the extent of economic recovery and growth. The future market may enter a stage of rational logic focusing on fundamentals, observing the macroeconomic operating status, industrial trends, and fundamentals.

In addition, with the dust settling on the U.S. election, future U.S. President Trump may continue to push for restrictions on Chinese technology, such as imposing tariffs. With references to "promote Chinese-style modernization, technology leading the way" at the leadership level, the technology industry is expected to catalyze, especially in areas such as domestic substitution, independent controllability, and more.

Industry insiders point out that new high-quality production sectors represented by industrial and information technology may benefit relatively more. Combined with the improvement of competition landscape in the past few years, the boost of industrial policies, continuous technological breakthroughs, there is hope to see improved corporate profits.

Galaxy Securities also believes that the fundamental factors in the A-share market + expected management are fundamental to the medium-term trend of A-shares. With future policy amplification, the central valuation level of A-shares is expected to continue to rise. As for configuration recommendations, the short-term technology sector TMT track remains the market focus, especially in areas like chip semiconductors, HarmonyOS, AI industry chain, and innovative communication.

Huaxia sse science and technology innovation board 100 etf (588800) closely tracks the sse science and technology innovation board 100 index, an index etf focusing on hard technology in the broad market, with characteristics of large volatility and broad growth space.

The Southeast Asia Technology ETF led the way this week.

Southeast Asia Technology ETF performed best this week, with a 1.77% increase during the week and a total net inflow of 0.12 billion yuan in the first four days of the week.

Southeast Asia Technology ETF is the first domestic ETF that invests in the pan-Southeast Asian technology industry, mainly through investing in the GFUND Southeast Asian technology index ETF to closely track the new exchange pan-Southeast Asian technology index.

The New Exchange Pan-Southeast Asia Technology Index aims to track the performance of the largest 30 technology companies in Southeast Asia and emerging Asian markets, including information technology, software consulting, automobile manufacturing, electronic component manufacturing, retail, and media services and other technology-related industries.

In recent years, Southeast Asia has become the main recipient of the fifth global industry chain transfer. Since 2017, the total GDP of Southeast Asian countries and India has surpassed Japan, making it the world's third largest economy. The urbanization rate and the size of the middle class brought about by economic growth provide a large and high-potential user base for the internet industry.

Currently, emerging markets are in a market trend of transitioning from feature phones to smartphones. Overall, the smartphone penetration rate is relatively low in emerging markets. With the improvement of economic level and the increase in consumption capacity, the smartphone penetration rate continues to rise, offering tremendous growth potential. With the development of downstream AI smartphones and the realization of the growth potential of emerging markets.

The gfnz100 ETF fell slightly by 0.96% this week.

The gfnz100 ETF fell by 0.96% this week, accumulating a 5% increase since November 6th.

After the dust settled from the U.S. presidential election on November 6th, U.S. stocks began to hit new highs consecutively, but this has mainly been a gradual upward trend. Once there is a relatively larger pullback, it will be more pronounced.

On Thursday, Powell's hawkish speech put pressure on U.S. stocks, with all three major indexes collectively declining. The gfnz100 fell by 0.64%, the S&P 500 index fell by 0.6%, and the Dow fell by 0.47%. The NASDAQ Biotechnology Index fell by 2.4%, hitting a new low since August.

Federal Reserve Chairman Powell stated on Thursday that there is no need to rush interest rate cuts. He mentioned that the reasons for being cautious about too quickly easing policy are the continuous economic growth, a stable job market, and a consistent rise in inflation.

Carol Kong, Currency Strategist at Hotung Inv, stated that the market accepted Powell's comments, hence reducing expectations for the pace of FOMC rate cuts. However, they still believe there might be a 25 basis point cut in December. The market will focus on Trump's policy agenda prospects, so in the short term, we may see further strengthening of the U.S. dollar.

GTJA believes the uncertainty in U.S. political wrangling has come to a halt with Trump's victory, the Trump trade has cooled off, and the new policy direction will be one of the main themes in the short-term market layout. Historically, even if the U.S. stock market showed volatility before the election, it usually stabilizes and trend upwards in the one to two months after election day. Economic fundamentals will largely drive the U.S. stock market once again. If there is a market pullback post-election day, it is likely to be an opportunity for bottom fishing.