It is another day of explosive volume!

A rare scene has emerged in the A-shares market.

Yesterday, the A-shares underwent significant adjustments, with Central Huijin, China Chengtong, and China Renewal all announcing their increases in holdings of Chinese stock assets.

This morning before the market opened, the Chinese officials made another heavy statement, and A-share listed companies also launched a wave of buybacks.

The Central Huijin Investment Company stated that it will firmly increase its stake in various market-style ETFs and will act decisively when the time comes.

The central bank will immediately follow up with support and provide sufficient relending support to Central Huijin Investment Company when necessary.

The Financial Regulatory Administration has also stated that it will optimize the regulatory policy on the proportion of insurance funds, raise the upper limit of equity asset allocation, and increase support for the capital markets and the real economy.

Insurance capital quickly responded, with China Life Insurance, New China Life Insurance, Ping An Insurance, and The People's Insurance all stating today that they are ready to be the 'ballast stone' for the capital markets.

The National Social Security Fund Council also made a recent statement after the market closed, indicating that it has actively increased its holdings in domestic stocks and will continue to do so in the near future.

Meanwhile, the announcements of stock buybacks and stake increases by listed A-share companies are flooding the internet.

From last night to today, A-share listed companies have collectively released nearly 100 announcements categorized as 'stock buyback' announcements.

The State-owned Assets Supervision and Administration Commission also stated today that it will fully support state-owned enterprises in increasing their buyback efforts for listed companies.

Under the China Merchants Group, seven listed companies plan to accelerate the implementation of their share buyback plans. Kweichow Moutai has begun drafting a new round of share buyback proposals, while Contemporary Amperex Technology, GTJA, Midea Group Co., Ltd, FOSUN PHARMA, and others have also initiated buybacks. HAIER SMARTHOME and Zhejiang Hangmin are applying a "dual approach" of buyback and increase stake.

At the same time, today is another day of explosive trading volume in the ETF market!

The four A-share 300ETF, four China Southern CSI 1000 ETFs, 500ETF, EFUND STAR50 ETF, Chinaamc Shanghai A50 Exchange Traded Fund, and other 11 broad-based ETFs today reached a total trading volume of 120.1 billion yuan, a direct increase of 49.7 billion yuan compared to yesterday's 70.3 billion yuan.

Among them, HUAXIA300 (510330), Hang Seng TECH Index ETF (513180), and China Southern CSI 1000 ETF (159845) continued to "explode" on the basis of yesterday's explosive volume, with today's trading volumes reaching 13.3 billion, 12.8 billion, and 8.149 billion respectively, surpassing yesterday's total of 9.252 billion, 4.872 billion, and 1.272 billion.

Just yesterday, after the Central Huijin announced that it had once again increased its stake in ETFs during trading, the net inflow of stock ETFs for the day was 73.8 billion yuan.

Unsurprisingly, the index that attracts funds in a counter-trend manner continues to be the broad-based index, with indices like CSI 300, Chinext Price Index, CSI 1000, Hang Seng TECH Index, and SSE Science and Technology Innovation Board 50 Index receiving investment.

Among them, four CSI 300 ETFs, including HUAXIA300 (510330), have a net inflow of 40 billion, while the Chinext 100 ETF (159957) tracking the Chinext Price Index has a total net inflow of 6.477 billion yuan.

The reason funds favor broad-based ETFs is also easy to understand; under the policy tone that stabilizes the stock market and the broader context of promoting medium- to long-term funds entering the market, core broad-based A500 and CSI 300 exhibit more resilience, acting as a "stabilizer" for the Capital Markets.

From a capital perspective, broad-based ETFs also find it easier to attract incremental funds.

The policy indicates that the regulation of insurance fund ratios will be optimized; if insurance funds fully utilize their equity asset ratio limit, institutions estimate that it could bring an incremental fund of 1.66 trillion.

Insurance funds naturally prefer high dividend and cash flow-rich assets, such as the A500ETF Fund (512050) and the free cash flow ETF (159201).

Currently, the second batch of private securities fund long-term stock investment pilot by insurance funds is accelerating its implementation, with a total approved pilot quota of 112 billion yuan.

At the same time, individual investors are still accelerating their entry.

According to data from the Shanghai Stock Exchange, in February, the number of new A-share account openings reached 2.8359 million, an 80.6% increase from January's 1.57 million, marking the second-highest monthly record in the past two years, only behind last October's 6.8468 million accounts.

Currently, ETFs have become one of the main channels for residents to enter the market, with broad-based ETFs that focus on growth, such as the ChinaAMC STAR50 ETF (588000), HUAXIA GEM 100 ETF (159957), and HUAXIA STAR Composite Index ETF (589000), being more attractive to individual investors.

Looking at the performance of the index this year, following yesterday's rare violent adjustment, all major broad-based indices in A-shares have turned negative for the year, with the Chinext Price Index falling 14% cumulatively this year, while A500, CSI 300 Index, and STAR Composite Index fell by 7.59%, 7.22%, and 5.08%, respectively.

This means that the valuation safety margin of equity assets has further increased.

As of April 7, the valuations of the A500 and Chinext Price Index are at historical percentiles of 23.87% and 6.07% respectively over the past ten years, with current PE (TTM) ratios at 13.38 times and 27.54 times.

However, with the reckless actions of the Trump administration on one side and the urgency of stimulating domestic demand on the other, how should we position ourselves in the face of a wildly fluctuating market?

Last night, CM BANK's private banking department sent a letter to clients discussing the allocation strategy after the market turmoil.

The letter stated that the market may maintain fluctuations in the short term, as there is still significant uncertainty regarding US economic policy and the fundamental risks have not yet been fully released, which may still lead to volatility in Global stock market sentiment. However, the long-term upward trend of A-shares is expected to remain unchanged, and it is recommended to achieve a balanced allocation among the SSE Dividend, Consumer, and Technology sectors.

After yesterday's sharp correction, the dividend yield of the SSE Dividend Index has reached 6.5%, far exceeding the 2% yield of 30-year government bonds, making it increasingly attractive for long-term funds.

The ETF tracking the National Securities Free Cash Flow Index (159201) can further assess the potential for shareholder returns compared to a single dividend index, as well as track the fundamentals of corporate cycles, to some extent balancing growth as well.

Moreover, after the hot surge in the first quarter, the Technology Sector naturally became the first to face a adjustment this round.

The GEM 100 ETF HUAXIA (159957) and the SSE Science and Technology Innovation Board Composite Index ETF HUAXIA (589000) track the GEM Price Index and the SSE Science and Technology Innovation Index, respectively, and have already continued to decline over 15% since the correction began on March 6, completely reversing the accumulated gains since February 5.