Core Viewpoint - The focus on "free cash flow" products has gained attention among investors as a strategy to navigate the current market environment characterized by rising indices and potential investment opportunities [2][4]. Free Cash Flow - Free cash flow represents the cash a company has after completing its business operations, paying operating expenses, and making necessary investments, which can be distributed to shareholders or used to pay down debt [3]. - This strategy emphasizes a company's real earning ability and sustainable cash generation capacity, distinguishing it from profit-focused strategies that may include uncollected receivables or one-time income [3]. - Companies with ample free cash flow are better positioned to withstand economic downturns and can capitalize on growth opportunities during economic upturns [3]. Investment Strategy - The strategy of focusing on free cash flow is essentially about "letting cash do the talking," tracking a company's cash creation ability and capital allocation efficiency to identify performance cycle turning points [4]. - In a low-interest and high-volatility market, free cash flow strategies have highlighted their long-term value advantages, attracting more investors [4]. - The new "National Nine Articles" emphasizes dividends, encouraging listed companies to increase cash dividend levels, which supports high cash flow companies [4]. Index Overview - The CSI All Index Free Cash Flow Index selects the top 100 securities based on free cash flow rate, ensuring that candidates have positive net cash flow from operating activities for five consecutive years [5]. - Companies in this index typically exhibit strong financial health, profitability, and high free cash flow rates, providing a solid foundation for dividends [6]. - The index excludes the financial and real estate sectors due to their distinct cash flow characteristics, focusing instead on industries with stable cash flows and high profitability, such as non-ferrous metals, transportation, food and beverage, petrochemicals, and home appliances [7][8]. Performance Metrics - Since its inception on December 31, 2013, the CSI All Index Free Cash Flow Index has achieved a cumulative increase of 392.95% and an annualized growth rate of 15.11% as of August 25, 2025, demonstrating its strong competitive edge in long-term investments [8]. - The index has shown resilience during market downturns, recording positive returns in most years except for those with significant market volatility [8]. Market Trends - In 2025, the risk appetite in the A-share market has notably increased, with the CSI All Index Free Cash Flow Index keeping pace with the broader market while exhibiting lower volatility compared to high-growth sectors like technology and new energy [9]. Fund Offerings - Zhongyin Fund has launched the Zhongyin CSI All Index Free Cash Flow ETF Linked Fund, allowing retail investors to easily access investment opportunities in free cash flow [10]. - The fund management team has extensive experience in index management and quantitative investment research, providing a robust platform for investment strategies [11]. Investment Considerations - For investors prioritizing asset stability and continuous dividends, the free cash flow strategy offers opportunities for steady cash flow returns and asset appreciation [15]. - The low correlation of this strategy with high-growth sectors can effectively diversify risk and enhance portfolio stability [16]. - In a volatile market environment, free cash flow investments have become a crucial component of asset allocation strategies [17].

Group 1 - The Chinese ETF market has officially entered the 5 trillion yuan era, with a total scale reaching 5.07 trillion yuan as of August 25, 2025, indicating significant acceleration in growth and a new stage in index-based development [1] - The Bank of China Fund has launched the Bank of China CSI All Share Free Cash Flow ETF Linked Fund, providing convenient tools for investors to position themselves [1] - The focus on free cash flow strategies is increasing, driven by policy guidance and regulatory promotion, leading to enhanced dividend willingness and capability among listed companies [1][3] Group 2 - The Bank of China CSI All Share Free Cash Flow ETF Linked Fund closely tracks the CSI All Share Free Cash Flow Index, which selects 100 listed companies with high free cash flow rates as index samples [2] - The index excludes financial and real estate sectors due to their distinct cash flow characteristics, ensuring a focus on companies with stable cash flows and similar characteristics [2] - The CSI All Share Free Cash Flow Index has shown strong long-term performance, with a cumulative increase of 380.81% and an annualized growth rate of 14.86% since its base date on December 31, 2013 [2] Group 3 - The Bank of China Fund has been continuously improving its index product line, offering a variety of tools to meet diverse asset allocation needs of investors [3] - The recent launch of the Bank of China CSI All Share Free Cash Flow ETF Linked Fund provides a convenient investment channel for off-market investors, further enhancing the product line [3] - The ongoing deepening of capital market reforms is expected to sustain the improvement in dividend willingness and capability among listed companies, benefiting free cash flow strategies [3]

Group 1 - The core viewpoint of the news is that the recent upward trend in A-shares, along with active capital and investor confidence, may lead to sustained positive momentum in the market, creating opportunities for long-term value strategies like free cash flow [1] - Zhongyin Fund has launched the Zhongyin CSI All Share Free Cash Flow ETF Linked Fund to capture investment opportunities in high free cash flow quality companies, providing a new option for investors [1][2] - The CSI All Share Free Cash Flow Index selects 100 listed companies with high free cash flow rates, reflecting the overall performance of companies with strong cash flow generation capabilities [1][2] Group 2 - The index focuses on sectors such as energy, consumer, and cyclical industries, with significant allocations to non-ferrous metals (15.2%), transportation (13.6%), food and beverage (10.8%), and oil and petrochemicals (9.5%), which typically exhibit stable cash flows and high profitability [2] - Since its base date on December 31, 2013, the CSI All Share Free Cash Flow Index has achieved a cumulative return of 373.9%, significantly outperforming the CSI Dividend Index, Shanghai Composite Index, and CSI 300 Index [2] - Companies with robust free cash flow are generally more capable of sustaining dividends, and the index focuses on financially healthy companies with strong profitability and high free cash flow rates [2][3]

Core Viewpoint - The recent upward trend in A-shares is supported by active capital and investor confidence, indicating potential for sustained positive momentum in the market [1] Group 1: Fund Launch and Strategy - China Universal Fund has launched the China Universal CSI All Share Free Cash Flow ETF Linked Fund to capture investment opportunities in high cash flow quality companies [1] - The fund aims to provide an additional convenient option for off-market investors to access free cash flow investment opportunities [1] - The underlying index selects 100 listed companies with high free cash flow rates, reflecting the overall performance of companies with strong cash flow generation capabilities [1] Group 2: Industry Distribution and Performance - The index focuses on sectors such as energy, consumption, and cyclical industries, with significant representation from non-ferrous metals, transportation, food and beverage, and oil and petrochemicals [2] - The index has achieved a cumulative return of 373.9% since its base date, significantly outperforming other indices like the CSI Dividend Index and the Shanghai Composite Index [2] - Companies with robust free cash flow are generally more capable of sustaining dividends, and the index emphasizes firms with strong financial health and profitability [2]