After the market adjustment, an important bottom has now appeared; institutions are optimistic about the A-share rebound entry points and the opportunity in the A500 ETF, with E Fund seeing potential opportunities.

Recently, the major indexes in China’s A-share market have shown a collective pullback. Data show that the CSI A50 index has cumulatively fallen 1.3% this week, the CSI A100 index is down 2.0%, and the CSI A500 index has slipped 1.8%. The simultaneous weakening of the three core indexes reflects that the market as a whole is still in a period of choppy consolidation and adjustment.

In response to the current market performance, the latest research report from Guotai Haitong Securities notes that after a sustained period of prior adjustment, the valuation of the A-share market has already entered a historically low range. The firm’s analysis believes that current market sentiment is excessively bearish, which in turn provides long-term investors with a rare window for positioning. Historical experience suggests that after an index’s periodic pullback, quality assets often show more attractive prices, creating an important strategic allocation entry point.

From a technical perspective, the major indexes have all approached key support levels. Trading volume can continue to contract, indicating that selling pressure is gradually easing. Guotai Haitong Securities emphasizes that investors should not be overly pessimistic at this time, and recommends focusing on industry leaders with strong earnings certainty and reasonable valuations, as well as emerging industry targets that align with the country’s strategic development direction. The firm believes that market adjustment is both a process of risk release and an opportunity for quality assets to be re-priced.