Fundamentals provide a bottom support for the market, leveraging the layout of the A500ETF fund.

On June 3, trading activity in the A500ETF fund was active, with a turnover of 22 billion yuan as of the publication deadline. Guotai Junan stated that the market is gradually becoming less sensitive to tariffs, and the resilience of China's fundamentals will provide bottom support for the market. Micro-plate stock trading activity is increasing, with a high level of crowding, so attention should be paid to trading crowding risks. In terms of allocation, it is still optimistic about the direction of "new quality domestic demand growth" with geopolitical isolation, domestic-driven and growth resilience characteristics, focusing on domestic circulation, and focusing on service consumption, new consumption, and anti-tariff. Key industries to pay attention to include beauty care, agriculture, forestry, animal husbandry and fishery, national defense, non-ferrous metals, pharmaceuticals, biology, computers, social services, commercial retail, etc. Galaxy Securities stated that the logic of the "technology narrative" in the A-share market is clear, and the revised restructuring measures will help promote the participation of early-stage technology innovation enterprises in mergers and acquisitions. Technology will still be the main theme of medium to long-term allocation, and in the short term, attention should be paid to undervalued sectors. Investors can use the A500ETF fund and its associated funds for investment layout.