Three major favorable factors are building the core support for the mid-term operation of A shares, and Southern Asset Management is actively deploying through the A500ETF.

On April 21st, the trading of A500ETF in the southern region was active, with a 0.08% increase in closing and a transaction volume exceeding 50 billion RMB. Galaxy Securities stated that the resilience of the domestic economy, the rise in inflation, and the increasing attraction of RMB assets have jointly built the core support for the medium-term operation of A-shares. The late April is currently in the period of intensive disclosure of annual and first-quarter reports of A-shares, which is a key window to verify profit recovery, focusing on structural layout opportunities. Pay attention to the deterministic trends of technological innovation, autonomous controllability, and industrial prosperity, benefiting from the resource sector with a year-on-year positive turn in the PPI and an upward price center, energy and alternative demand themes, defensive sectors. Changjiang Securities believes that geopolitical conflicts accelerate the global supply chain restructuring, and the irreplaceability of China as the "world's factory" is enhanced. Related export chains and leading assets in the manufacturing industry may receive a "scarcity premium". In terms of allocation direction, regardless of whether the Middle East conflict repeats itself, adhere to three main lines: first, AI trends that are difficult to change due to conflicts, paying attention to AI infrastructure and "HALO" assets such as computing power, storage, and power equipment. Second, the urgency of conflict accelerating the energy revolution, focusing on new energy such as lithium batteries and hydrogen energy, as well as resources such as non-ferrous metals, oil, and coal. Third, the direction of industries that are expected to gradually improve profitability at the bottom, such as chemical industry, steel, seasoning, etc. Data shows that the China Securities A500 Index tracked closely by A500ETF in the South covers high-quality leading companies in A-shares large and medium-sized markets, evenly distributed in core areas such as emerging manufacturing and consumption upgrades, with a focus on new production factors. Investors can lay out through A500ETF in the South and its connected funds with one click.