Two major drivers continue to support the performance of Chinese assets, with Southern A500ETF receiving net purchases of 20 billion yuan in the past 20 days.

On January 13th, as of press time, the A500ETF from Southern slightly adjusted, falling by 0.31% with a trading volume of 8.2 billion yuan. In terms of fund flow, there was a net inflow of 20.53 billion yuan in the past 20 days, with the latest scale reaching 47.3 billion yuan. Zhongjin Company pointed out that the reconstruction of international order resonating with China's industrial innovation trend is the core driving force behind the current market rally and the revaluation of Chinese assets; the power of the global monetary order restructuring and the flow of funds may be greater than the fundamental forces of a single country or market in the short term. The continuous iteration of AI industry technologies and high demand have driven growth in many related industries; coupled with China's recent innovative breakthroughs in many fields, they together promote the revaluation of Chinese assets. Zhongjin believes that these two driving forces will continue to support the performance of Chinese assets in 2026. Huatai Securities believes that under the momentum effect, there may still be room for a spring market, but judging from the standard deviation of industry price changes, the proportion of trading volumes, and the trends of leveraged funds and ETFs, the trading structure is relatively concentrated, and some hot sectors may need to digest crowding pressures. The probability of the market turning into rotation is gradually increasing. With the window of performance forecasts approaching, it is recommended to combine fundamental expectations to find cost-effective directions, focusing on varieties in the external demand chain with improving prosperity and themes with catalyzing effects and relatively low crowding pressures. Specifically at the industry level, it is recommended to focus on gaming, duty-free, battery, engineering machinery, and agrochemicals. The medium-term allocation strategy remains unchanged, and it is recommended to buy upstream resource stocks in the power chain on dips. The A500ETF from Southern closely tracks the CSI A500 Index, which selects 500 securities with relatively large market capitalization and good liquidity from various industries as index samples to reflect the overall performance of the most representative listed securities in each industry. As a representative of China's core assets, the A500 Index balances traditional and emerging industries and has relative advantages in valuation, profitability, and dividends. The current demand for fund allocation for the index is expected to increase. Investors can use the A500ETF from Southern and its linked funds for easy layout.