Stable market policies are expected, focusing on free cash flow ETFs Huaxia (159201), CSI 500 Cash Flow ETF Huaxia (560120), and positioning for value.

GateUser-bd883c58 · 2026-04-09T10:49:00+00:00

On the first trading day of April, the A-shares significantly rose, with the Shanghai Composite Index up 1.23% and the Shenzhen Component Index up 1.88%. Indices related to free cash flow all increased collectively, with noticeable capital inflows, and the Huaxia Free Cash Flow ETF performed outstandingly. Analysis indicates that under the environment of geopolitical risks and asset scarcity, the free cash flow index has become one of the core allocation directions, with a focus on defensive and growth sectors.

GateUser-bd883c58

2026-04-09 10:49:00

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On the first trading day of April, the three major A-share indices opened sharply higher, with the Shanghai Composite up 1.23%, the Shenzhen Component up 1.88%, and the ChiNext up 2.21%. The indices related to free cash flow collectively advanced, with the Guozheng Free Cash Flow Index rising about 0.7% intraday, with constituent stocks Jinjiang Shipping and Northern International hitting the daily limit; the CSI 500 Free Cash Flow Index increased about 0.9% intraday, led by constituents such as Western Mining and Hisense Appliances.

Regarding related ETFs, the largest free cash flow ETF by scale, Huaxia (159201), has attracted over 1.2 billion yuan in net inflows over the past five trading days. The only CSI 500 cash flow ETF, Huaxia (560120), has seen net inflows exceeding 500 million yuan over the past ten trading days, showing significant capital allocation characteristics.

Huaxia Securities analysis states that the ongoing one-month conflict between the U.S. and Iran, with substantial disagreements over ceasefire plans, may prolong high oil prices; Chinese assets demonstrate resilience; the stock market in China continues its stockholder game, and with the Politburo meeting approaching in April, market stabilization policies are expected. Investment recommendations include defensive sectors, energy independence, and high-growth sectors with strong prospects.

Under the current environment of global geopolitical uncertainty combined with an “asset shortage,” the free cash flow index, which has stable cash flows and valuation advantages, is expected to become one of the core allocation directions. Moreover, under continuous policy support, sectors with improving growth prospects and rising prices can benefit continuously. Attention can be given to dividend-plus assets: Huaxia Free Cash Flow ETF (159201) and Huaxia CSI 500 Cash Flow ETF (560120).

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