Core Viewpoint - The A-share market experienced a collective decline in the afternoon, with value sectors such as banking and coal showing resilience, leading to an increase in related indices. The market is currently influenced by valuation and expectations due to the lack of high-frequency quarterly performance verification as it enters a performance gap period towards the end of the year [1]. Group 1 - The Guozheng Value 100 Index rose by 0.3%, while the Guozheng Free Cash Flow Index increased by 0.01%. In contrast, the Guozheng Growth 100 Index fell by 0.4% [1]. - The recent style switch and dispersion in the A-share market over the past two months are attributed to the upcoming performance gap period, which has led to increased market volatility primarily driven by valuation and expectations [1]. - Future performance of low-value styles may be strong if there are policy catalysts or inflows of resident funds [1].

Group 1 - The A-share market experienced a mixed performance after a collective high opening, with the Guozheng Free Cash Flow Index slightly retreating, currently up about 0.1% [1] - Leading stocks include Xiamen International Trade, Yuntianhua, and China Aluminum, while stocks like Yaxiang Integration, Hailu Heavy Industry, and Jinhong Group lagged behind [1] - The largest free cash flow ETF (159201) has seen continuous net inflows over the past nine days, totaling 1.495 billion yuan, reaching a new high of 6.999 billion yuan in total scale [1] Group 2 - The free cash flow ETF (159201) and its linked funds focus on endogenous growth capabilities, emphasizing financial health and sustainability, which aligns with the long-term growth and capital appreciation needs of investors [2] - The fund management fee is set at an annual rate of 0.15%, and the custody fee at 0.05%, both of which are among the lowest in the market, maximizing benefits for investors [2] Group 3 - According to a report from Xinda Securities, the recent style switch and dispersion in the A-share market is attributed to the performance gap as the year-end approaches, leading to a lack of high-frequency quarterly performance verification [1] - The current style dispersion is driven by valuation, expectations, and capital, which is expected to continue for at least 1 to 2 quarters, with a confirmed shift from small-cap to large-cap styles [1]