Institutions continue to be optimistic about the bull market in A-shares, with the possibility of breaking through previous highs in the second quarter. The South A500ETF is trading actively.

On April 9th, the trading of South A500ETF was active, with a turnover of over 6 billion yuan by the time of publication. Changjiang Securities believes that looking forward, they continue to be optimistic about the bull market in A shares and suggest positioning in the "golden pit". The index may break through the previous high for the year in the second quarter. With the gradual opening of the Strait of Hormuz, the top of oil price is falling, and the market's pessimistic expectations have begun to turn. After the impact of conflicts on A shares gradually weakens, the increase in risk appetite may help push the A-share index above the previous high in the second quarter. In terms of allocation direction, whether or not the Middle East conflict recurs, three main lines should be adhered to: the AI trend which is difficult to change, focusing on AI infrastructure such as computing power, storage, and power equipment; the urgency of conflict accelerating the energy revolution, focusing on new energy such as lithium batteries, photovoltaics, and hydrogen energy, along with resources such as non-ferrous metals, oil, and coal; and sectors with improving profits at the bottom, such as chemicals, papermaking, steel, food, and agricultural products. Dongxing Securities stated that as war-related disturbances decrease, the investment style will shift towards growth being the main focus. The best time for building positions in growth stocks throughout the year is expected to come, so it is recommended to pay attention to the growth direction, especially in the areas of the overall AI industry chain, commercial aerospace, semiconductor equipment, and robotics. Data shows that the China 500 Index closely followed by South A500ETF covers high-quality leading companies in the large and medium-sized A-share markets, evenly distributed in core areas such as emerging manufacturing and consumer upgrades, focusing on the deployment of new production forces. Investors can use A500ETF South and its connected funds as a one-click layout tool.