A500ETF rose by 0.6% after bottoming out in the south, institutions say the mid-term upward trend of A-shares remains unchanged, and they still have a positive outlook on the technology sector.

On May 19th, the South A500ETF bottomed out and rebounded, closing up by 0.6% with a trading volume of 40.62 billion yuan. In terms of fund flows, it received net purchases of 32.24 million yuan yesterday, with the latest scale reaching 30.8 billion yuan. China Merchants Securities stated that for A-shares, they are still optimistic about the technology sector and do not believe there will be a style switch. First, domestic inflation levels are not sufficient to trigger a policy shift, and the Federal Reserve still needs some time to observe inflation. Second, the rapid rise in this round of PPI is mainly driven by the increase in oil prices, with domestic demand still weak, showing a significant K-shaped recovery trend in the domestic economy. Third, the continuous upward revision of EPS in the technology sector is the main driver of the current market uptrend. In the future, the layout will continue to focus on high prosperity and high growth, with stronger certainty in the overseas computing power infrastructure industry trends. The direction of high growth mainly focuses on: AI demand in high prosperity areas, export advantage manufacturing, and rising resource sectors. Galaxy Securities believes that in the medium term, the upward trend has not changed. The current round of innovation in the ChiNext market is driven by both industry cycles and performance realization. The biggest feature of this round of market trends is the realization of high prosperity and strong fundamental support. Currently, A-share funds continue to flow from low-growth industries such as finance, real estate, and traditional cycles to high-tech growth tracks with high research and development, high barriers, and high increments. With continuous profit release, steady valuation increase, and continuous entry of incremental funds, the medium-term uptrend remains unchanged, emphasizing a focus on mainline opportunities. Data shows that the China Southern A500ETF closely tracks the CSI A500 Index, covering high-quality large and mid-cap A-share leading enterprises, focusing on new quality productivity and serving as a powerful tool for fund layout opportunities in the future market. Investors can use the China Southern A500ETF and its connected funds for one-click layout.