--- title: "The probability of a cyclical improvement in the fundamentals of A-shares in 2026 remains high, focusing on the opportunities in free cash flow ETFs ChinaAMC (159201) and CSI 500 Cash Flow ETFs ChinaAMC (560120)" type: "News" locale: "en" url: "https://longbridge.com/en/news/280728048.md" description: "The probability of a cyclical improvement in the fundamentals of A-shares in 2026 is relatively high. Investors should pay attention to the layout opportunities of the free cash flow ETF ChinaAMC (159201) and the CSI 500 cash flow ETF ChinaAMC (560120). On March 27, the main indices of A-shares opened lower but turned positive. The performance of free cash flow-related indices showed divergence, with the ChinaAMC free cash flow ETF receiving a net inflow of 946 million yuan in the past three days, while the CSI 500 cash flow ETF attracted 390 million yuan in the last five trading days. Shenwan Hongyuan Securities analysis believes that the A-share market is developing healthily, with an increase in the attractiveness of long-term funds, and it is expected that profitability will effectively rebound in 2026" datetime: "2026-03-27T02:53:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280728048.md) - [en](https://longbridge.com/en/news/280728048.md) - [zh-HK](https://longbridge.com/zh-HK/news/280728048.md) --- # The probability of a cyclical improvement in the fundamentals of A-shares in 2026 remains high, focusing on the opportunities in free cash flow ETFs ChinaAMC (159201) and CSI 500 Cash Flow ETFs ChinaAMC (560120) On March 27, after a low opening, the main indices of A-shares turned positive, with mixed performance in the free cash flow-related indices. The National Index of Free Cash Flow fell about 0.18% during the session, with constituent stocks such as Salt Lake Co. and Zhuhai Smelter Group leading the gains; the CSI 500 Free Cash Flow Index rose about 0.36% during the session, with constituent stocks such as Kanghong Pharmaceutical hitting the daily limit, and Yanjing Beer and Chuaning Biotechnology following suit. In terms of related ETFs, the largest free cash flow ETF in the same category, ChinaAMC (159201), has seen continuous net inflows over the past three days, totaling CNY 946 million. The only CSI 500 cash flow ETF tracking the same index, ChinaAMC (560120), has accumulated net inflows of CNY 390 million over the past five trading days, showing significant capital allocation characteristics. Shenwan Hongyuan Securities' research report analyzes that from a micro perspective, the balance of the investment and financing functions of A-shares has significantly improved; the governance of A-share listed companies and shareholder returns have seen notable enhancements; and the attractiveness of long-term capital in the A-share market has increased, leading to greater allocation to A-shares. Overall, the fundamental basis for the healthy development of the A-share market has not changed. Looking ahead, the probability of a cyclical improvement in the fundamentals of A-shares in 2026 remains high. It is expected that the profitability of A-shares will effectively rebound in 2026, with cumulative profits showing a year-on-year increase each quarter, providing a fundamental basis for a mid-term upward trend in A-shares. Currently, under the global geopolitical uncertainty combined with an "asset shortage" environment, the free cash flow index, with its stable cash flow and valuation advantages, is expected to become one of the core allocation directions. Moreover, with continuous policy support, the direction of price increases benefiting from improved economic expectations can enhance attention to dividend PLUS assets: Free Cash Flow ETF ChinaAMC (159201) and CSI 500 Cash Flow ETF ChinaAMC (560120). Daily Economic News ### Related Stocks - [560120.CN](https://longbridge.com/en/quote/560120.CN.md) - [561870.CN](https://longbridge.com/en/quote/561870.CN.md) - [159201.CN](https://longbridge.com/en/quote/159201.CN.md) ## Related News & Research - [Universal Digital Inc. Announces Termination of ETF Partnership Agreement | LFGMF Stock News](https://longbridge.com/en/news/286616540.md) - [Keep Your Portfolio Safe With This Low-Volatility ETF](https://longbridge.com/en/news/286604877.md) - [Guardian Ultra-Short U.S. T-Bill Fund ETF declares $0.1448 dividend](https://longbridge.com/en/news/286471588.md) - [VanEck, Grayscale file fresh BNB ETF amendments as race for next altcoin spot ETF accelerates](https://longbridge.com/en/news/286652991.md) - [$1000 Invested In Vanguard S&P 500 Growth ETF 15 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/286797286.md)