Core Viewpoint - The launch of the Morgan CSI 300 Free Cash Flow ETF marks a significant addition to the market, focusing on companies with strong cash flow generation capabilities and offering a unique quarterly mandatory dividend mechanism [1][2]. Group 1: ETF Launch and Features - The Morgan CSI 300 Free Cash Flow ETF began trading on the Shanghai Stock Exchange on May 7, with an initial fundraising scale of 425 million yuan [1]. - This ETF tracks the CSI 300 Free Cash Flow Index, which has shown impressive long-term performance with a cumulative return of 185.36% since its base date of December 31, 2013 [1]. - The ETF excludes financial and real estate sectors, focusing instead on mature industries with stable cash flows and significant dividend potential [1]. Group 2: Market Context and Dividend Trends - In 2024, A-share listed companies reported a record total cash dividend of 2.39 trillion yuan, marking the third consecutive year that annual dividends exceeded 2 trillion yuan [1]. - The 50 constituent stocks of the CSI 300 Free Cash Flow Index accounted for approximately 568 billion yuan of the total A-share market dividends in 2024, representing about one-quarter of the overall market [1]. Group 3: Investment Strategy and Market Conditions - In the current low-interest-rate environment, companies with high cash flow generation capabilities are benefiting from improved valuations, making them more resilient during credit contraction periods [2]. - The Morgan CSI 300 Free Cash Flow ETF introduces a unique quarterly mandatory dividend mechanism, distributing at least 60% of the excess return when the ETF outperforms its benchmark index on the last trading day of each quarter [2]. - Morgan Asset Management aims to provide investors with opportunities in relatively "certain" quality assets, filling a gap in its "dividend toolbox" with this new product [2].