Core Insights - Small-cap stocks have shown significant momentum, with the CSI 2000 Enhanced ETF (159552) rising by 2.05% as of 11:16 AM on August 11, marking a 48.66% increase year-to-date, outperforming broader market ETFs [1] - The surge in small-cap ETFs is attributed to the ongoing benefits from specialized and innovative policies, alongside the liquidity premium resulting from high market volatility [1] - Despite the positive trends, some small-cap stock valuations are reaching historically high levels, prompting caution regarding liquidity risks and potential market fluctuations [1] Market Performance - The CSI 2000 Enhanced ETF has experienced a 3.58% increase over the past five days, a 5.56% increase over the past ten days, and a 10.24% increase over the past twenty days [1] - The ETF reached its 38th new high of the year during intraday trading, indicating strong investor interest and market activity [1] - Net inflows into the market exceeded 14 million, reflecting robust capital interest in small-cap stocks [1] Investment Strategy - The analysis suggests that investors should consider a phased investment strategy to manage risks associated with the high valuations and potential market volatility [1]

Core Insights - The market experienced a low opening followed by a rebound, with small-cap stocks leading the gains. The largest CSI 2000 Enhanced ETF (159552) rose by 2.30%, accumulating a 43.51% increase year-to-date [1] - Trading activity was robust, with a turnover rate of 25.96% and a transaction volume of approximately 120 million, marking an 88.79% increase compared to the previous day, reaching a one-year high [1] - Net inflow during the trading session was estimated at around 66 million, with a premium surge to 0.99% at the close. The estimated scale during the session exceeded 500 million, making it the largest among similar enhanced ETFs in the market [1] Market Dynamics - According to Guosen Securities, since September 24 of the previous year, the A-share market has seen a strong rebound driven by significant policies, with core broad-based indices recording over 20% gains. The CSI 2000 index, which covers small and micro-cap enterprises, has increased by over 64%, becoming a key driver of the current market rally [1] - The CSI 2000 index is characterized by low market capitalization and high elasticity, benefiting from a combination of liquidity easing and policy dividends, showcasing substantial return elasticity and consistently reaching new highs [1] - The ongoing liquidity easing and continuous focus on specialized and innovative policies have contributed to the sustained rise of the CSI 2000 index, with enhanced indices focusing on small-cap stocks performing exceptionally well [1]