Shanghai Composite Index rebounds! China Asset Management: Maintain the view of "enduring short-term shocks to achieve long-term gains"

How should Huaxia Fund’s investment strategy seize opportunities in the current volatile market?

The situation in the Middle East is fraught with undercurrents, affecting global risk assets. After the A-shares experienced extreme selling and priced in the worst-case scenario, they displayed strong resilience and quickly recovered, returning to 3900 points. Computing power and new energy have become the dual prosperity main lines supporting the market rebound.

Wang Bo from Huaxia Fund’s Investor Return Research Center indicated that after two consecutive days of recovery, the A-share market may still experience fluctuations in the short term due to news, but volatility may gradually decrease, entering a phase of oscillation and bottoming out.

In terms of investment strategy, the judgment of “enduring short-term shocks for long-term gains” remains. With the recent market pricing of risks, medium to long-term investments still present opportunities, and the probability of a situation worse than this past Monday occurring is overall lower. In terms of marginal changes, current opportunities outweigh risks, and it is important to seize low points in the subsequent news environment for accumulation.

Structurally, focus on optimizing positions around prosperous directions: concentrate on AI, semiconductor chips, new energy, power grids, as well as non-ferrous metals and petrochemicals. Related ETFs include: ChiNext AI ETF, ChiNext New Energy ETF, Power Grid Equipment ETF, Non-ferrous Metals ETF, Petrochemical ETF, etc.

For investors with relatively low risk tolerance, it is also possible to grasp the trend with a broad-based index, achieving “vaguely correct” results with one click. For example, the CSI 300 ETF (510330.SH) has a management fee as low as 0.15% per year, the lowest in the entire market.

Daily Economic News