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A-shares are back in shock, what to add to add positions?

author:Red kangaroo and beckoning cat
A-shares are back in shock, what to add to add positions?

Recently, the A-share market has returned to shock, which has also given us a good opportunity to increase our positions.

So, what do we add to our position now?

I myself have increased my position in CUAM MSCI China A50 Connect ETF (560050)

A-shares are back in shock, what to add to add positions?
A-shares are back in shock, what to add to add positions?

Why did you choose to increase your position?

We know

The MSCI China A50 selects 22 stocks with the largest market capitalization in each of the 11 industry sectors according to the Global Industry Classification Standard (GICS) among the stocks eligible for Stock Connect. This step ensures that the index includes the most representative leading companies in each industry. Based on the free-float market capitalization, another 28 stocks are selected. These stocks are selected to ensure the diversity and representativeness of the index while reducing the turnover rate of the index.

Therefore, the MSCI China A50 can be regarded as an industry-balanced "leading stock concentration camp", and there are three aspects that are more attractive to me:

The first is that the pullback market is relatively strong. From today's market, we can also see that CUAM MSCI China A50 Connect ETF (560050) still maintains a strong market when the ChiNext and the Science and Technology Innovation Board fell by about 2%. This helps us maintain a better investment mindset in a volatile market.

A-shares are back in shock, what to add to add positions?

The second is that there is a lot of room for gain. The current MSCI China A50 P/E ratio is only 10.27x, which is at the low historical quantile. It has a large profit margin. So invest firmly at this time.

A-shares are back in shock, what to add to add positions?

Third, benefit from the "faucet effect". MSCI China A50 has a layout of leading stocks in various industries, which is expected to benefit from the continuous improvement of industry concentration in the transition period of the mainland economy. With the deepening of the reform of the capital market and the development of emerging industries, the scale effect of leading companies will be further enhanced, and at the same time, the proportion of institutional investors and foreign investors will continue to increase, which will also continue to strengthen the leading effect.

After experiencing a bottom rally, the recent pullback has also given us a good opportunity to add to our positions. At this time, the layout value of CUAM MSCI China A 50 Connect ETF (560050) is very obvious. Friends who like to buy in bank accounts or Internet platforms can pay attention to their corresponding feeder funds: Class A code 014528 Class C code 014529

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$MSCI China A50 ETF (SH560050)$

$贵州茅台(SH600519)$

$CUAM MSCI China A50 Connect ETF Connect A(OTCFUND|014528)$