Core Viewpoint - The A-share market continues to adjust, with the A500 ETF (512050) experiencing a 1.1% decline on October 31, but still attracting significant capital inflow, indicating ongoing investor interest despite market fluctuations [1][2]. Group 1: Market Performance - The A500 ETF (512050) recorded a daily trading volume of 5.71 billion yuan and a net capital inflow of nearly 600 million yuan on the same day [1]. - From January to October, the A500 ETF (512050) has increased by 23.58%, outperforming the CSI 300 index, which rose by 17.94% during the same period [1]. Group 2: Economic Outlook - A consensus on U.S.-China trade has been reached, and the dual expansionary fiscal and monetary policies in the U.S. for 2026 are expected to support external demand and domestic economic stability [1]. - The anticipated slowdown in the Federal Reserve's interest rate cuts may create short-term volatility in market liquidity and risk appetite, necessitating close monitoring of U.S. inflation and economic recovery [1]. Group 3: Investment Strategy - The A-share market is expected to see active thematic investments in November, with a potential shift in focus towards sectors with anticipated growth in the coming year [2]. - The A500 ETF (512050) employs a dual strategy of industry-balanced allocation and leading company selection, covering all 35 sub-industries, and is particularly overweight in AI, pharmaceuticals, and renewable energy sectors compared to the CSI 300 [2].

Core Viewpoint - The A-share market experienced a rebound after an initial decline in April, with significant gains in major indices and ETFs, indicating a recovery in investor sentiment and market dynamics [1] Market Performance - The Shanghai Composite Index rose by 5.89% since April 8, while the CSI A500 Index increased by 5.64%. The A500 ETF (512050) saw a cumulative increase of 7.02%, surpassing the 20-day moving average [1] - The total revenue for the Shanghai Stock Exchange's main board reached 49.57 trillion yuan, with a net profit of 4.35 trillion yuan, reflecting a year-on-year increase of 1.9% [1] - The Sci-Tech Innovation Board reported revenues of 1.42 trillion yuan and net profits of 475.23 billion yuan, with over 50% of companies showing profit growth [1] - The Shenzhen Stock Exchange recorded revenues of 20.82 trillion yuan and net profits of 806.447 billion yuan [1] - The Beijing Stock Exchange had 265 companies with total revenues of 180.845 billion yuan, averaging 6.82 million yuan, remaining stable compared to the previous year, with 225 companies reporting profits [1] Future Outlook - According to CITIC Securities research, the global market's risk aversion has decreased, leading to a recovery in risk appetite, supported by liquidity and a slowdown in trade tensions [1] - The upcoming May Day holiday is expected to boost domestic consumption, contributing to improved internal demand [1] - The AI sector is experiencing accelerated development, with advancements in large models and multi-modal applications [1] - The first quarter reports of A-share companies indicate profit improvements, with structural differentiation in industry revenue growth, highlighting the importance of focusing on sectors that maintain high prosperity [1] - The short-term risk appetite is expected to continue improving, potentially leading to a phase shift in market style towards growth [1]