Core Viewpoint - The A500 ETF fund has shown significant growth in both scale and shares, while the underlying index is currently at a historically low valuation, presenting a strong investment opportunity [4][6]. Group 1: A500 ETF Fund Performance - As of June 5, 2025, the A500 ETF fund has increased by 0.11%, with a trading volume of 16.63 billion yuan and a turnover rate of 10.27% [3]. - Over the past six months, the A500 ETF fund's scale has grown by 34.84 billion yuan, ranking second among comparable funds [4]. - The fund's shares have increased by 39.36 billion shares in the last six months, ranking first among comparable funds [4]. Group 2: Index Valuation and Composition - The current price-to-book ratio (PB) of the A500 index is 1.46, which is lower than 81.78% of the time over the past year, indicating a favorable valuation [4]. - The top ten weighted stocks in the A500 index account for 21.21% of the index, with notable companies including Kweichow Moutai, CATL, and Ping An Insurance [4][6]. Group 3: Market Outlook - Northeast Securities suggests that June will see a focus on large-cap growth stocks, although the overall market is expected to remain volatile [3]. - Historical trends indicate that large-cap growth stocks tend to outperform in June, while sectors like home appliances and power equipment still have relatively low valuations [3].

Market Overview - The A-share market showed significant differentiation last week (May 12 to May 16), with large-cap stocks performing well while small-cap and Sci-Tech Innovation Board faced slight pressure. The Shanghai 50 and CSI 300 rose by 1.22% and 1.12% respectively, indicating the defensive advantage of undervalued blue-chip stocks. The ChiNext 50 increased by 2.00%, reflecting the attractiveness of large-cap growth sectors. Conversely, the Sci-Tech 50 fell by 1.10%, possibly due to underwhelming earnings from some semiconductor companies and capital diversion to other tech sectors [2][12]. Industry Performance - Last week, 65% of sectors achieved positive returns, with beauty care, non-bank financials, and automotive sectors performing relatively well, rising by 3.08%, 2.49%, and 2.40% respectively. In contrast, media, defense, and computer sectors showed significant weakness, declining by 0.77%, 1.18%, and 1.26% respectively [2][14]. Fund Issuance - A total of 23 funds were issued last week, including 12 equity funds, 5 mixed funds, 5 bond funds, and 1 fund of funds (FOF), with a total issuance of 24.004 billion units [2][20]. Fund Performance - The Wind China Fund Total Index rose by 0.17% last week. The ordinary equity fund index increased by 0.26%, while the mixed equity fund index rose by 0.30%. The bond fund index saw a slight decline of 0.05% [3][10]. Global Asset Review - Global markets exhibited significant divergence last week, with equity markets generally rising, driven by technology stocks. The S&P 500 and Nasdaq increased by 4.54% and 6.60% respectively, propelled by better-than-expected earnings from AI leaders like Nvidia. European markets also showed resilience, with the German DAX and French CAC both rising over 0.8%, reflecting enhanced economic resilience in the Eurozone. The Hang Seng Index in the Asia-Pacific region rose by 2.09%, influenced by positive signals from US-China trade talks [5][6]. Domestic Bond Market Review - Last week, the 10-year and 30-year government bond futures fell by 0.51% and 1.17% respectively, indicating upward pressure on yields. The short-term funding spread (R007-DR007) showed no significant compression compared to the previous week, while medium to long-term rates remained low [15][19].