Group 1: Market Overview - The market showed a volatile recovery trend last week. Most indices opened lower on Monday and gradually recovered, but still ended the week with losses. The ChiNext Index led the decline, with a weekly drop of 1.67%. The non - bank financial and computer sectors were weak, with weekly declines of about 3.98% and 3.43% respectively, while the non - ferrous metals sector was prominent, with a weekly gain of 2.78% [1] - The market focus remained on the geopolitical situation. The geopolitical situation was still tense, and the uncertainty in the Strait of Hormuz supported high - level volatile energy prices. Overseas, the US dollar index continued to fluctuate strongly, and the US March PMI indicators were divided, leading to a further decline in market expectations for the Fed to cut interest rates. Domestically, the RMB exchange rate remained in a strong - oscillating pattern [1] Group 2: Options Market - In the options market last week, the implied volatility (IV) of various financial options rebounded. The IV of the STAR 50 options (IV = 29%) and ChiNext ETF options (IV = 24%) rose above the median of the past year. The IV of 50 and 300 options was in the range of 15% - 17%, and that of CSI 500 and CSI 1000 options was in the range of 25% - 28%. The PCR of most financial options was in the range of 60% - 80%, slightly lower than the previous week [2] Group 3: Strategy Outlook - The market may continue the volatile pattern, and the implied volatility of financial options will continue to rise. It is advisable to hold indices with relatively reasonable valuations, such as the SSE 50 and CSI 300, and consider selling out - of - the - money put options on the corresponding indices. For the STAR 50 Index, which has large recent fluctuations and high static valuations, if holding the underlying assets, one can consider buying out - of - the - money put options or selling out - of - the - money call options. If there are substantial spot gains, one can consider taking profits on the spot and keeping a small amount of long - term call options. The CSI 1000 - 2606 index futures basis has converged, and one can consider rolling over to the 2609 contract with a higher basis to form a covered call strategy [3] Group 4: Market Data - The report provides detailed data on various financial options, including the closing price, price change, IV, ΔIV (daily), historical quantile, IV median in the past year, option trading volume, and PCR of multiple underlying assets such as the SSE 50ETF, SSE 50 Index, CSI 300ETF, CSI 500ETF, CSI 1000 Index, ChiNext ETF, STAR 50ETF, and Shenzhen 100ETF [5] - It also presents data on the price, price change, IV of different months, and related quantiles of various underlying assets over different time periods, as well as information on IV term structure, intraday IV trends, skew index, smile curve, and the relationship between IV and trading volume [7][10][15]

Investment Rating - The report indicates a net outflow of 26.229 billion yuan from industry-themed ETFs this week, with significant fluctuations observed in the steel and basic chemical sectors [2][31][36]. Core Insights - As of March 20, 2026, there are a total of 1,456 listed ETFs in mainland China, with a total scale of 5.10 trillion yuan. Among these, stock ETFs account for the largest share, both in number (1,140) and scale (2.95 trillion yuan) [7][8]. - The A-share market saw a decline this week, with the Shanghai Composite Index closing at 3,957.05, reflecting a drop of 3.38%. Notably, the communication and banking sectors experienced gains of 2.10% and 0.36%, respectively, while the non-ferrous and basic chemical sectors faced declines of 11.82% and 10.53% [13][14][21]. - In terms of fund flows, broad-based ETFs saw a net inflow of 9.078 billion yuan, with the top three inflows coming from the CSI 500 ETF Southern (+4.450 billion yuan), the CSI 300 ETF Huatai-PB (+4.333 billion yuan), and the SSE 50 ETF (+3.056 billion yuan). Conversely, industry-themed ETFs experienced a net outflow of 26.229 billion yuan, with the top outflows from the chemical ETF (-4.373 billion yuan) and the non-ferrous metal ETFs [31][32][36]. Summary by Sections ETF Market Overview - As of March 20, 2026, the total number of ETFs is 1,456, with stock ETFs being the most prevalent, comprising 78.30% of the total number and 57.76% of the total scale [7][8][10]. Domestic and International Equity Market Index Performance - The A-share market indices showed a downward trend, with the Shanghai Composite Index down 3.38%. The communication and banking sectors were the only ones to show positive performance this week [13][14][21]. Stock ETF Fund Flows - Broad-based ETFs had a net inflow of 9.078 billion yuan, while industry-themed ETFs saw a significant net outflow of 26.229 billion yuan, indicating a shift in investor sentiment [31][32][36]. Industry Congestion Monitoring - The report highlights that the utility and communication sectors are currently experiencing higher congestion levels, while the automotive and textile sectors are less congested, suggesting potential investment opportunities [34][36].

Core Viewpoint - The continuous net inflow into the CSI 300 ETF over the past seven trading days serves as a stabilizing signal amidst a declining A-share market, indicating institutional confidence in current valuations [2][3]. Group 1: Market Performance and ETF Inflows - Since March 16, 2026, the CSI 300 ETF has seen a net inflow of approximately 12.9 billion yuan over seven consecutive trading days, marking the first significant inflow this year after a period of net selling since January [2]. - The Shanghai Composite Index experienced a decline of over 4% on March 23, 2026, but the CSI 300 ETF and other major ETFs like the SSE 50 ETF and CSI 500 ETF attracted net purchases of around 4.2 billion yuan and 4.2 billion yuan, respectively [2]. - Historical data shows that during periods of significant net buying in the CSI 300 ETF, the market tends to respond positively, with an average return of 1.28% for the CSI All Share Index during these inflow periods [7]. Group 2: Regulatory Support and Institutional Behavior - The People's Bank of China emphasized the importance of maintaining stability in financial markets, prioritizing stocks, bonds, and foreign exchange, which reflects a strong commitment to market stability [3]. - The behavior of institutional investors, particularly the "national team" such as Central Huijin and the central bank, often correlates with net buying in broad-based ETFs during market downturns, indicating a strategic approach to stabilize the market [3]. Group 3: Historical Analysis of ETF Buying Patterns - An analysis of the CSI 300 ETF's inflow patterns from 2024 onwards identified nine distinct periods of continuous net buying lasting seven days or more, with an average net purchase of approximately 73.2 billion yuan per period [5]. - The longest recorded net buying period was from July 15 to August 9, 2024, lasting 19 days with a total net inflow of about 127 billion yuan [5]. - Following the end of net buying periods, historical data indicates a high probability of market recovery, with average returns of 5.77% after 20 trading days and 7.80% after 40 trading days [10]. Group 4: Investment Strategy Recommendations - Investors are advised to monitor the net inflow trends of major ETFs like the CSI 300 ETF as a key timing signal for entering the market, particularly during significant net buying periods [15]. - For clients holding long positions in subjective or quantitative strategies, maintaining patience is recommended, as historical data suggests favorable returns in the months following periods of substantial ETF inflows [15].

Market Overview - The A-share market experienced a collective rebound, with the Shanghai Composite Index rising by 1.78% to close at 3881.28 points, the Shenzhen Component Index increasing by 1.43% to 13536.56 points, and the ChiNext Index up by 0.50% to 3251.55 points [2] - The total trading volume in the Shanghai and Shenzhen markets was 20.962 trillion, a decrease of 352.3 billion compared to the previous day [2] External Influences - Former President Trump, known for his understanding of investor sentiment, released news aimed at alleviating market fears, which resulted in a significant drop in oil prices by 15% and volatility in U.S. stock index futures [3] - The overall market sentiment improved as the U.S. stock indices, despite closing down approximately 1.38%, showed signs of recovery, indicating a potential stabilization in global economic conditions [3] A-share Market Dynamics - The A-share market showed signs of internal adjustment pressure, having risen from 3000 to 4200 points without significant corrections, with recent external events acting as a stress test [4] - The market exhibited a high open followed by a decline, reflecting investor uncertainty, but rebounded in the afternoon as external markets stabilized [4] - A total of 4943 stocks rose during the day, with only about 300 stocks declining, indicating a broadly positive market sentiment [4] Sector Performance - The banking sector provided strong support to the Shanghai Composite Index, while technology stocks also contributed positively [5] - The Shenzhen Component Index showed relatively weaker performance due to declines in key stocks such as Ningde Times and BYD, which pressured the ChiNext Index [5] - The oil and gas sector was the only one to experience significant declines, while military and power sectors showed notable gains [5] Capital Flow - The Hong Kong stock market indices outperformed the Shanghai Composite and Shenzhen Component indices, with the Hang Seng Index and Hang Seng Tech Index rising by approximately 2.79% and 2.55%, respectively [5] - There was a notable shift in capital flow in the Hong Kong Stock Connect, with a net outflow of 27.3 billion, contrasting with the previous day's inflow of 28 to 29 billion [5] Trading Volume Insights - The overall trading volume decreased by about 300 billion compared to previous levels, raising questions about the involvement of stabilizing funds [6] - The trading volume for the CSI 300 ETF and the SSE 50 ETF showed increased activity towards the end of the trading day, supporting the upward movement of related indices [6]

1. Report Industry Investment Rating - The report does not mention the industry investment rating [8] 2. Core Viewpoints of the Report - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session, especially on March 23, when many products had a significant increase in volume at the end of the session [7][10] - After the market closed on March 23, the quantitative signals quickly strengthened, but there was differentiation among sectors. The technology sector had relatively weak signals [7] - In terms of style, the mid - cap blue - chip market is still favored, and the agriculture and manufacturing industries are optimistic, with a focus on the photovoltaic sector [7] 3. Summaries According to the Directory 3.1 3月23日主要宽基指数ETF成交量明显放大 - During the recent market adjustment, many major broad - based index ETFs showed the characteristics of increasing trading volume day by day and during the session. On March 23, when the market had a significant adjustment, many ETFs showed significant volume increases after 14:45. For example, the trading volume of Huatai - Berries CSI 300ETF, Huaxia SSE 50ETF, Southern CSI 500ETF, and Southern CSI 1000ETF in the last 15 minutes accounted for 10.5%, 17.8%, 8.8%, and 15.9% of the whole - day trading volume respectively [10] 3.2 盘后量化模型信号迅速转强，市场有望迎来反弹 3.2.1 下跌后估值安全边际提升 - As of March 23, 2026, with the change in market sentiment, the price - to - earnings ratios of major A - share broad - based indexes have fallen back to a reasonable range. Compared with March 2, the valuation quantiles of major broad - based indexes have significantly decreased, and the market has become more rational. Currently, they are mostly in the 70 - 80 quantiles, providing a higher safety margin for equity assets [24] 3.2.2 3月23日盘后量化信号迅速转强 - **Broad - based index short - term signal strengthening**: The short - term signal of broad - based indexes has a good historical performance. On March 23, the quantitative signals of major broad - based indexes quickly strengthened after the market closed. Since 2026, the quantitative signals were strong in January, neutral in February, and weakened at the end of March. With the rapid decline of the market on March 23, the quantitative signals returned to the previous high level [30][35] - **Industry medium - term signal strengthening but sector differentiation**: The monthly medium - term signal of industry indexes also has an indicative effect. Similar to the performance of broad - based index signals, the quantitative signals indicating the industry strength in the next month also strengthened, but there was differentiation among sectors. The signals of value - based sectors were strong, while the expectations of the technology sector were still relatively weak, and the mid - cap blue - chip style is expected to continue to strengthen [38][40] 3.3 继续看好农业与制造，重点关注光伏板块 - Despite the high uncertainty in the external situation, the investment opportunities still focus on stocks with medium - risk characteristics, and the characteristics of mid - cap blue - chips will be further strengthened, with a focus on the cyclical and manufacturing sectors. In the context of the prominent global energy security requirements, the new energy industry (photovoltaic, wind power, power transmission) with global competitive advantages in China is the core main line of the manufacturing sector. The report lists relevant ETFs in the photovoltaic, power, and agricultural sectors for reference [46]

Market Performance - The A-share market experienced a significant decline, with the Shanghai Composite Index falling 3.63% to close at 3813.28 points, while the Shenzhen Component Index dropped 3.76% to 13345.51 points, and the ChiNext Index decreased by 3.49% to 3235.22 points [2] - The total trading volume in the Shanghai and Shenzhen markets reached 2.45 trillion, an increase of 145.4 billion compared to the previous trading day [2] Sector Analysis - Most sectors faced severe losses, with only the oil service and coal sectors showing resilience. Less than 300 stocks rose, while nearly 5000 stocks declined, with a median drop of approximately 5.6%, significantly higher than the overall market decline [3] - The financial sector, including major banks and securities firms, saw substantial declines, with the banking sector down about 3.7%, securities down approximately 4.4%, and insurance down around 4.6% [5] Market Sentiment - The breach of the 3800-point level indicates that investors have been trapped since August 2025, posing a significant challenge for long-term value investors [4] - Despite the downturn, there is a perspective that the market should not be overly pessimistic, as the adjustments in major stocks have been substantial, and the selling pressure may have provided an opportunity for short-selling [5] External Factors - The market's decline is attributed to both internal and external pressures. Internally, the lack of sufficient adjustments during the previous rise from 3000 to 4200 points has led to a large accumulation of profit-taking, with only one-third of the 1600 stocks that doubled in value showing improved performance [6] - Externally, geopolitical tensions, particularly the Gulf conflict and recent statements from Trump, have heightened global market fears, further suppressing risk appetite [6] Future Outlook - The stabilization of the market will depend on the resolution of the crisis in the Hormuz Strait in the short term, and on improvements in domestic macroeconomic conditions for mid-term recovery [6]

Market Overview - The A-share market experienced a collective decline, with the Shanghai Composite Index narrowly holding above the 4000-point mark, closing down 1.39% at 4006.55 points. The Shenzhen Component Index fell 2.02% to 13901.57 points, and the ChiNext Index decreased by 1.11% to 3309.10 points. The total trading volume in the Shanghai and Shenzhen markets reached 21.275 billion, an increase of 663 million from the previous day [3][4]. Market Dynamics - The market faced a dual decline in both indices and individual stocks, primarily due to two factors: the psychological impact of the 4000-point threshold prompting risk-averse behavior among investors, and escalating Middle East conflicts coupled with significant declines in U.S. stocks raising concerns over persistently high oil prices. This situation could lead to a stagflation scenario, negatively impacting the global economy and capital markets [5][6]. Sector Performance - The banking sector showed notable support for the market, while the "three major oil companies" benefited from expectations of rising oil prices, which also positively influenced the power and coal sectors. However, the overall support from these sectors was limited, failing to replicate the previous day's strong performance. The insurance and securities sectors were significant contributors to the market decline, with insurance stocks dropping 2.26% and securities stocks falling 1.06% [6][7]. Commodity Trends - Precious metals and various non-ferrous metal sectors were the main contributors to today's market pullback, with gold prices falling to around 4750, marking a daily decline of 2.94%. The relationship between gold and oil prices is noteworthy, as oil prices initially rose by 3.89% before retreating to near flat levels. This trend challenges the pricing logic for precious and non-ferrous metals, warranting close market attention [7]. Hong Kong Market Activity - Notably, there was a reverse inflow of funds into the Hong Kong stock market, with a total trading volume of approximately 25 billion Hong Kong dollars, indicating that some investors are taking advantage of lower prices to position themselves in Hong Kong stocks [8].

Report Industry Investment Rating - No information provided in the report Core Viewpoints - This week, margin trading activity and balances improved on a week - long basis, with the proportion of margin trading turnover in A - share turnover rising from 9.2% to 9.5%, and most industries' leverage ratios rebounding [3][4]. - ETF fund outflows slowed down or even showed net inflows, with representative broad - based ETFs such as CSI 300, SSE 50, ChiNext, CSI 500, and CSI 1000 showing slower outflows than last week, and SSE Composite Index and STAR 50 ETFs having net inflows [5]. - The outflow of main funds slowed down significantly. Although the main funds of CSI 300, ChiNext, and STAR Market still had net outflows, the speed slowed down. Some industries still had large outflows but also showed a slow - down trend compared to last week, while the basic chemical industry had a large net inflow [6]. - Northbound funds continued to have net inflows. Although their activity decreased slightly, the proportion of their turnover in A - share turnover remained above 12%. The performance of the top 50 Northbound heavy - holding stocks continued to improve, outperforming the market [7]. Summary by Relevant Catalogs Margin Trading - Activity and balance: The proportion of margin trading turnover in A - share turnover rose from 9.2% to 9.5%, and the balance increased from Monday to Thursday. The margin trading of broad - based indexes returned to net inflows, and the outflows of SSE 50 and STAR 50 decreased [4]. - Industry dimension: Most industries' leverage ratios rebounded. Construction decoration, public utilities, and environmental protection industries had a large proportion of net margin purchases in turnover, while comprehensive, beauty care, and non - ferrous metals industries had a large degree of de - leveraging [4]. - Individual stock dimension: Small - and medium - cap stocks shifted from de - leveraging to leveraging, and the de - leveraging of large - cap stocks (over 500 billion yuan) decreased. The top 35 popular stocks mainly increased leverage, and the median proportion of net margin purchases in turnover from Monday to Friday was 0.48%, 1.58%, 1.69%, 0.87%, and 0.34% respectively, a significant increase compared to last week [4]. ETF - Representative broad - based ETFs such as CSI 300 (510300.SH), SSE 50 (510050.SH), ChiNext (159915.SZ), CSI 500 (510500.SH), and CSI 1000 (512100.SH) had slower outflows than last week, and SSE Composite Index (510210.SH) and STAR 50 (588000.SH) ETFs had net inflows [5]. Main Funds - The main funds of CSI 300, ChiNext, and STAR Market still had net outflows, but the speed slowed down significantly. In terms of industries, the outflows from electronics, non - ferrous metals, power equipment, media, and computer industries were still large but had slowed down compared to last week. The basic chemical industry had a large net inflow, while the outflows from machinery and equipment, national defense and military industry, and communication industries accelerated slightly [6]. Northbound Funds - This week, the activity of Northbound funds decreased slightly, and the proportion of their turnover in A - share turnover decreased slightly but remained above 12%. The weekly performance of the top 50 Northbound heavy - holding stocks continued to improve, with the SSE Connect 50 rising 0.75% this week, outperforming the CSI 300 (0.19%). The median weekly increase and decrease of the top 20 most actively traded Northbound stocks was 0.72%, also outperforming large - cap stocks, indicating possible continuous net inflows of Northbound funds [7]. - Since Q4 last year, Northbound funds have continued to have net inflows. In Q4 2025, the net foreign exchange settlement peak occurred, with the securities investment foreign exchange settlement and sales difference reaching 16.6 billion US dollars. Since late December, the trading activity of Northbound funds has significantly rebounded, reaching a phased high on February 24. Since the end of February, the performance of Northbound heavy - holding stocks has gradually improved [8].

1. Report Industry Investment Rating - Not provided in the content 2. Core View of the Report - This week, the global risk - averse sentiment has increased, and global risk assets have declined in resonance. The A - share market has also fallen but shows stronger resilience. The short - term decline does not mean the end of the bull market, and the "Spring Rally" is currently in the third stage [4][13] 3. Summary by Relevant Catalogs 3.1 Market Overview - **Global Market**: Affected by the US - Iran conflict, global stock markets generally declined this week, with South Korean and European stock markets experiencing significant drops. US, Japanese, and German government bond yields rose significantly, while Chinese bond yields slightly declined by 0.7bp. Global commodities saw precious metals fall, and crude oil and natural gas prices rise significantly. The US dollar index rose, and most other currencies depreciated [16] - **A - share Market**: Except for the dividend index, most broad - based indices fell this week, with the Science and Technology Innovation 50 leading the decline at - 4.9%. The trading volume of broad - based indices decreased, with the daily average trading volume of Wande A - share dropping from over 3 trillion on Monday and Tuesday to below 2.5 trillion from Wednesday to Friday. The weekly average trading volume of Wande A - share increased from 2.4 trillion to 2.6 trillion [22][25] 3.2 Industry Performance - **Industry Trends**: This week, the media sector led the decline at - 6.38%, while the top five rising industries were petroleum and petrochemicals (9.06%), coal (7.11%), public utilities (5.77%), agriculture, forestry, animal husbandry and fishery (4.23%), and banks (1.64%) [32] - **Technology Sector**: Since February, sectors such as optical communication, high - frequency PCB, high - speed copper connection, solid - state batteries, and liquid cooling have had excess returns. Since March, only optical modules, optical communication, and controllable nuclear fusion have had certain excess returns. From Wednesday to Friday, sectors such as storage, robots, and commercial aerospace rose with reduced trading volume [33][36] 3.3 Fund Flows - **ETF Funds**: The outflow speed of representative broad - based ETFs has changed little. From January 14th to the end of January, the average daily net outflow of CSI 300 ETF was over 14 billion, and since February, it has slowed to about 1 billion. Since February, the average daily net outflow of SSE 50 ETF has been less than 1 billion, compared with over 5 billion previously. The outflows of SSE Composite, Science and Technology Innovation 50, and CSI 1000 ETFs have slowed down compared with last week, while those of CSI 300, SSE 50, and CSI 500 ETFs have slightly accelerated [40][43] - **Leveraged Funds**: The proportion of margin trading turnover has decreased from 10.08% to 9.23%, and the margin trading balance has decreased from 2.67 trillion to 2.65 trillion. However, there were improvement signals on Thursday. Most industries have de - leveraged, but transportation, petroleum and petrochemicals, coal, food and beverages, textile and apparel, and non - ferrous metals have increased leverage. Stocks of all market - cap gradients have de - leveraged, with large - cap stocks having a larger de - leveraging amplitude. Hot stocks in transportation, petroleum and petrochemicals, non - ferrous metals, and storage have mostly increased leverage [44][52][56] - **Quantitative Funds**: Since March, the excess return of CSI 500 quantitative index enhancement has continued to rise, with a median of 1.5%, while that of CSI 1000 quantitative index enhancement has fallen to - 0.01% [67] - **Main Funds**: From Monday to Wednesday, the main funds in CSI 300, ChiNext, and the Science and Technology Innovation Board had net outflows, with a large outflow on Tuesday. On Thursday, the main funds turned into net inflows, and on Friday, there was a slight net outflow. Overall, the sentiment of the main funds improved after Thursday [74][78] - **North - bound Funds**: This week, the total trading volume of north - bound funds has increased, with the average daily trading volume rising from 323.8 billion to 344.3 billion, and the proportion of A - share trading volume dropping from 13.3% to 13.0%, but still remaining at a relatively high level above 13%. The median of the weekly performance of the top 50 heavy - holding stocks of north - bound funds has risen from - 0.35% to 0.79%, indicating a possible net inflow of north - bound funds [12][82][86] - **South - bound Funds**: This week, the average daily trading volume of south - bound funds has increased from 224.4 billion to 230.6 billion, and the proportion has risen from 47.8% to 52.8%. The average daily net purchase amount has decreased from 460 million to - 140 million. The inflow of south - bound funds into the electronics, communication, computer, medicine, and commerce and retail industries has decreased, while the inflow into the banking, media, and non - bank sectors has increased [90][92][93]

Group 1 - The article discusses the selection criteria for dividend index funds, emphasizing the importance of historical annual dividend payments [3] - It mentions specific funds such as the Shanghai Stock Exchange 50 ETF and the CSI 300 ETF, which provide regular dividends and are less affected by market fluctuations [3] - The article highlights the strategy of buying into high dividend yield indices for long-term holding to benefit from fund dividends [3] Group 2 - It introduces periodic payment funds, which allow investors to receive cash flow on a weekly or monthly basis, with annual returns ranging from 4% to 6% depending on the fund contract [5] - These funds are suitable for retirement as they provide regular cash flow regardless of market conditions, contrasting with the dollar-cost averaging strategy [6] - The article notes that such periodic payment funds are relatively scarce in the market and many are small-scale, nearing liquidation [6] Group 3 - The emergence of advisory combinations has led to the development of periodic cash flow investment portfolios, such as the "Monthly Salary Treasure" [7] - This combination consists of a diversified set of funds, ensuring stable cash flow regardless of stock price movements, making it suitable for retirement [8]