--- title: "The Federal Reserve remained on hold as expected, and geopolitical conflicts triggered an overall adjustment in the A-shares. Attention is on the A500ETF fund (512050) and other core broad-based indices" type: "News" locale: "en" url: "https://longbridge.com/en/news/279729578.md" description: "The Federal Reserve maintained interest rates as expected, and the three major A-share indices collectively adjusted, with the A500 ETF Fund (512050) falling by 1.3%. Federal Reserve Chairman Jerome Powell stated that short-term inflation expectations have risen, and discussions about interest rate cuts have been mentioned, facing obstacles for future rate cut policies. China Merchants Securities recommends focusing on sectors such as power equipment, crude oil, and chemicals. The A500 ETF Fund has advantages such as low fees, good liquidity, and large scale, making it suitable for investors to allocate core A-share assets" datetime: "2026-03-19T06:18:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279729578.md) - [en](https://longbridge.com/en/news/279729578.md) - [zh-HK](https://longbridge.com/zh-HK/news/279729578.md) --- # The Federal Reserve remained on hold as expected, and geopolitical conflicts triggered an overall adjustment in the A-shares. Attention is on the A500ETF fund (512050) and other core broad-based indices On March 19, the three major A-share indices collectively adjusted. In terms of sectors, natural gas and computing power leasing sectors were active against the market trend; multiple sectors including precious metals, minor metals, chemical fibers, chemicals, steel, cultivated diamonds, and power grids fell. As of 14:13, the A500ETF fund (512050) had a decline of 1.3%. Among the holdings, Rongsheng Petrochemical, Tongkun Co., Ltd., Industrial Bank Silver Tin, and Zijin Mining had the largest declines. On the news front, on March 18, the Federal Reserve announced its interest rate decision, keeping rates unchanged as expected. Federal Reserve Chairman Jerome Powell stated at a press conference that short-term inflation expectations have risen in recent weeks, and there will be no interest rate cuts until further improvement in inflation is seen, with discussions of "potential rate hikes" mentioned. He noted that the impact of the Iran war on the economy remains uncertain, and the current progress in reducing inflation has stalled, with tariffs and rising oil prices creating cumulative pressure that is gradually transmitting to core inflation. China Merchants Securities stated that concerns about inflation in the near term will pose greater obstacles to the U.S. interest rate cut policy, and the timeline for rate cuts may be pushed back to the second half of the year. However, this does not prevent a rapid recovery of market risk appetite if conflicts ease, keeping A-shares primarily in a state of fluctuation. Looking ahead, with the expectation of a resonance in demand between China and the U.S., PPI may accelerate to positive territory. It is recommended to pay attention to sub-sectors with rising and sustained prices such as power equipment, crude oil, chemicals, precious metals, and coal. The A500ETF fund (512050) helps investors easily position themselves in core A-share assets at low levels. This ETF has core advantages such as low fees (comprehensive fee rate of only 0.2%), good liquidity (ranked first in average daily trading volume among peers over the past year), and large scale (nearly 34 billion yuan). It tracks the CSI A500 Index, adopting a dual strategy of industry balanced allocation and leading selection, covering all 35 sub-sectors of the CSI, integrating value and growth attributes, and is not afraid of style rotation. Compared to the CSI 300, it is overweight in new productivity industries such as the AI industry chain, pharmaceuticals and biotechnology, and power equipment new energy, possessing a natural barbell investment attribute. Investors can pay attention to related products: A500ETF fund (512050) \[Off-market connection (Class A: 022430; Class C: 022431; Class Y: 022979)\], A500 Enhanced ETF fund (512370). 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