Core Viewpoint - The largest free cash flow ETF (159201) has shown positive performance, with a rise of approximately 0.3%, driven by leading stocks such as Lianxu Electronics, Meiyingsen, and Longji Machinery. The ETF's trading volume exceeded 250 million yuan, indicating active trading in the market [1]. Group 1: Market Trends - The trend of "deposit migration" is becoming evident, leading to adjustments in asset allocation structures, a recovery in investment sentiment, and an improvement in risk-return ratios, which are expected to attract more funds into the capital market [1]. - There is a shift in resident assets from real estate to financial assets, with stock risk-adjusted returns outperforming bonds, and insurance funds having smooth access to the market, all contributing to this trend [1]. Group 2: ETF Characteristics - The free cash flow ETF (159201) closely tracks the National Certificate Free Cash Flow Index, selecting stocks with positive and high free cash flow after screening for liquidity, industry, and ROE stability, resulting in a high-quality index with strong risk resistance suitable for long-term investment [1]. - The fund management fee is set at an annual rate of 0.15%, and the custody fee at 0.05%, both of which are the lowest in the market, maximizing benefits for investors [1].

Core Viewpoint - Since 2008, the wealth allocation preferences of Chinese residents have evolved through three stages: stable growth, accelerated accumulation, and deposit migration, with a notable shift towards financial assets and equity markets as deposit rates decline and investment awareness increases [1][2][3]. Group 1: Stages of Wealth Allocation - The first stage (2008-2017) was characterized by stable growth, with new deposit levels averaging around 4.7 trillion yuan, reflecting a focus on liquidity and conservative savings [1]. - The second stage (2018-2022) saw a significant increase in new deposits, reaching 17.8 trillion yuan in 2022, driven by regulatory changes and market volatility, leading to a defensive asset allocation with a shift in the deposit ratio to 25%:75% [2]. - The third stage (2023 onwards) indicates a decline in new deposits, with projections of 16.7 trillion yuan and 14.3 trillion yuan for 2023 and 2024 respectively, as funds begin to migrate from low-yield deposits to low-volatility assets and equities [2][3]. Group 2: Factors Influencing Capital Market Inflows - The shift in asset allocation from real estate to financial assets is expected to bring potential incremental funds to the capital market, as residents increasingly favor financial investments [3][4]. - The relative attractiveness of stocks has improved, with the Sharpe ratio for stocks surpassing that of bonds, indicating a growing appeal for equity investments among depositors [5][6]. - Recent adjustments in insurance product interest rates are anticipated to attract more savings into insurance products, further supporting the inflow of long-term capital into the stock market [6]. Group 3: Economic Indicators - Exports showed resilience in July, with growth rates exceeding expectations, particularly in trade with ASEAN and Africa, which may mitigate some downward pressures from U.S. demand [7]. - The Producer Price Index (PPI) showed improvement in July, although year-on-year figures remained unchanged, indicating mixed signals in the economy [7].