CSC Financial: Continued net subscriptions to broad-based ETFs are expected to provide support for the stabilization and recovery of core indices in the future.

A research report by CSC Financial pointed out that as of October 16, broad-based ETFs achieved net inflows for 10 consecutive days, with cumulative inflows exceeding 140 billion yuan during the period. In the short term, the large-scale and rapid inflows into broad-based ETFs over the past 10 trading days have played a positive role in stabilizing market sentiment and protecting market liquidity. Whether this effect can be sustained and form medium- to long-term support requires combining fund flows with price performance: if CSI 300 and STAR Market/ChiNext ETFs continue to receive net subscriptions amid market volatility, while the corresponding indices' declines narrow and post-adjustment recoveries become more stable, the signal of the market shifting from adjustment to recovery will become clearer. For market investors, the mutual confirmation between large capital's sustained and stable increased allocation to the equity market and the stabilization of market performance will help improve investors' willingness to allocate to equities and their investment confidence, providing a foundation for gradually increasing exposure to core broad-based indices and equity assets going forward.