Core Viewpoint - The A-share market experienced fluctuations on October 22, with the MSCI China A50 Connect Index declining approximately 0.55%, while leading stocks such as ZTE, Bank of Communications, Agricultural Bank of China, and Cambricon Technologies showed gains [1] Market Analysis - According to China Merchants Securities, the resumption of Sino-U.S. trade negotiations and the nearing end of the third-quarter report disclosures are leading to a gradual reduction of market disturbances [1] - Current market inflows remain strong, with investors showing a strong willingness to increase positions at lower levels, suggesting a potential recovery in market momentum [1] A50ETF Overview - The A50ETF (159601) closely tracks the MSCI China A50 Connect Index, providing a packaged investment in 50 leading interconnected stocks, thereby offering balanced exposure to core A-share assets [1] - The constituent stocks are distributed across various sectors, including electronics, banking, food and beverage, and power equipment [1] Top Holdings - The top ten holdings in the A50ETF include Zijin Mining, CATL, Industrial Fulian, Kweichow Moutai, Haiguang Information, Cambricon Technologies, BYD, Heng Rui Medicine, China Merchants Bank, and ZTE [1]

Core Viewpoint - The merger between Haiguang Information and Zhongke Shuguang represents a significant move in China's computing power industry, aiming to enhance resource integration and achieve scale effects, which could lead to accelerated growth for the companies involved [1][2] Summary by Sections Merger and Acquisition Activity - Haiguang Information and Zhongke Shuguang are planning a stock swap merger, with Haiguang issuing A-shares to acquire Zhongke's A-shareholders and raising funds through this issuance [1] - There have been over 600 disclosed asset restructuring cases in A-share listed companies this year, which is 1.4 times that of the same period last year, with about 90 major asset restructurings, a 3.3 times increase [2] Policy Support and Market Dynamics - The recent revision of the "Major Asset Restructuring Management Measures" aims to enhance review efficiency and regulatory inclusiveness, thereby invigorating the merger and acquisition market [1][2] - The new policy is expected to boost confidence and activity in the market, as evidenced by the surge in M&A-related stocks following the policy announcement [2][3] Focus on Key Sectors - The majority of disclosed restructuring projects in the Shenzhen market are in the new productive forces sector, with 70% of targets in this area and 80% involving same-industry or upstream/downstream mergers [3][4] - Core leading companies are positioned as the main players in M&A activities due to their resource integration capabilities and lower integration risks [4] Investment Opportunities - The Zhongzheng A500 Index ETF (563880) is highlighted as a strategic investment vehicle to capture opportunities in the M&A wave, focusing on new productive forces and industry-leading companies [4] - The ETF offers a low comprehensive fee rate and a monthly evaluation of dividend distribution, providing investors with predictable returns [4]