Central Bank: Continue Implementing Moderately Loose Monetary Policy, A500ETF Fund (512050) Allocates to A-Share Core Assets

On March 13, the three major A-shares indices all turned positive during trading. In terms of sectors, storage chips, agriculture, batteries, green energy concepts, and chemical sectors performed strongly, while cloud computing, cultivated diamonds, and aerospace satellites declined. As of 11:05, the A500 ETF (512050) increased by 0.08%. Among its holdings, Putailai and China Power Construction hit the daily limit up, while Enjie Shares, Crystal Optoelectronics, and Salt Lake Shares also rose.

In the news, the central bank recently held a meeting, stating that in the next phase, it will establish a scientific and prudent monetary policy system, continue to implement moderately loose monetary policy, and increase counter-cyclical and cross-cyclical adjustments to create a suitable monetary and financial environment for sustained and high-quality economic growth.

The director of Guangkai Chief Industry Research Institute said that this year, the central bank will flexibly use tools such as reserve requirement ratio cuts and interest rate reductions, smooth the transmission channels of monetary policy, and better utilize structural monetary policy tools to precisely target key areas and weak links in the real economy, creating a favorable environment for sustained economic growth. The central bank may consider lowering re-lending rates to further enhance the positive role of structural monetary policy tools in supporting economic restructuring, improving people’s livelihoods, and stabilizing investment.

Broad-based ETF related to the market

The A500 ETF (512050) helps investors quickly allocate core A-share assets and seize the benefits of valuation uplift. This ETF features low fees (total fee rate of only 0.2%), good liquidity (average daily trading volume over the past year ranks first among peers), and a large scale (nearly 36 billion yuan). It tracks the CSI A500 Index, adopting a dual strategy of industry-balanced allocation and top-tier selection, covering all 35 sub-sectors of the CSI, integrating value and growth attributes, and resisting style rotation. Compared to the CSI 300, it is overweight in emerging industries such as AI industry chain, pharmaceuticals and biotech, electric power equipment, new energy, and defense military industry, exhibiting a natural “dumbbell” investment profile.

Investors can pay attention to related products: A500 ETF (512050) [Over-the-counter links (A class: 022430; C class: 022431; Y class: 022979)], and A500 Enhanced ETF (512370).

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