The first quarter has just concluded, and the A-share market has delivered a tumultuous report card: it initially surged during the spring rally at the beginning of the year, only to experience sharp fluctuations under the pressure of geopolitical conflicts. The feeling of &#34;the money earned has been given back&#34; has left many investors at the threshold of the second quarter, unsure of which way to go.
In the context of an accelerated market rotation rhythm, the difficulty of timing for a specific industry and sector has clearly increased. With the previous stock index adjustments, the market has priced in a certain degree of risk expectations. At this time, leveraging the broad-based index to retain participation rights in subsequent rebounds amidst volatility may be a better choice.
First Quarter Review: Intensified External Disturbances and Accelerated Industry Rotation
In the first quarter of 2026, the A-share market experienced a three-stage market trend of &#34;opening red—fluctuation—sharp drop and rebound&#34;:
January: Spring excitement arrives early, with technology and cyclical sectors performing in tandem. At the beginning of the new year, market risk appetite quickly increased, with technology sectors such as commercial aerospace, AI computing power, semiconductor equipment, and robotics taking turns to perform, alongside a strong rise in non-ferrous metals, resulting in an overall &#34;opening red.&#34;
February: Fluctuating upward, with accelerated style rotation. The dominant forces in the market shifted from broad technology to the price increase theme, with continuous improvement in PPI leading to pricing recovery in cyclical stocks. The price increase logic spread from upstream resources to midstream manufacturing, and the outbreak of conflicts in the Middle East at the end of the month further strengthened the performance of resource stocks.
March: Escalation of geopolitical conflicts exacerbates market volatility. The market situation became further complicated, with risk appetite declining, and funds shifting towards defensive and cyclical assets. Resource sectors such as coal and oil and petrochemicals, as well as the power equipment sector catalyzed by energy security and computing power synergy, strengthened.
Looking back at the beginning of the year, funds were eagerly chasing various industry hotspots, with soaring commercial rockets and rapidly evolving AI technologies overwhelming investors. Many investors were afraid of missing out on a particular trend, and the FOMO (Fear Of Missing Out) sentiment reached its peak. However, as the market evolved and external geopolitical disturbances occurred, enthusiasm turned into fear of uncertainty. Just a month later, the &#34;newly rich&#34; themes continued to adjust, and HALO (Heavy Assets, Low Obsolescence) assets became a &#34;lifeline&#34; in investments.
However, once market consensus is formed, related investment opportunities are often quickly priced in within a short period, or even reflect future performance space well in advance. This is also the reason why sectors like non-ferrous metals and power grid equipment under the HALO logic, after continuously reaching new highs, quickly faced a pullback.
Looking ahead, amidst the fog of unknowns and variables, predicting what new narratives the market will present next seems increasingly difficult. Therefore, shifting from concentrated investment in a single industry theme back to a balanced layout based on core broad-based indices may be a strategy worth considering at this moment.
Second Quarter Layout: In a Market Environment with Frequent Rotation, Broad-Based Indices May Be a Better Choice
When the main line of the market is unclear, it is very difficult to accurately judge whether a certain industry can become the next leading stock. It is better to achieve balanced allocation through core broad-based indices. Core broad-based indices, with their strong representativeness and risk diversification characteristics, may become a better choice in the current uncertain market.
In fact, by observing the flow of funds, it can also be felt that after the market prices in risk expectations, funds have begun to flow into the market through broad-based ETFs. Taking the E Fund CSI 300 ETF as an example, the fund flow in late March has shifted from a weekly outflow trend in February to a net inflow.
Figure: Changes in weekly net inflow of E Fund CSI 300 ETF (in 100 million yuan)
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OcEHhExOhuQXFTvcv7JXxD_Ct9ltClnD5TSflQrEtjxqIAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OcEHhExOhuQXFTvcv7JXxD_Ct9ltClnD5TSflQrEtjxqIAA/641"/>
Data source: Wind, statistical period 2026/02/01-2026/03/27.
So, which broad-based indices are worth paying attention to at present, and can serve as a means to capture potential rebound opportunities in the context of rising risk appetite? On one hand, core indices that represent the overall situation of A-shares, such as the CSI 300 Index, can be chosen as a base allocation; on the other hand, indices like the STAR 50 and ChiNext Index, which have independent prosperity and good elasticity, can also be focused on.
CSI 300: The &#34;Ballast Stone&#34; of A-share Core Assets
The CSI 300 Index consists of 300 stocks with large market capitalization and good liquidity from the Shanghai and Shenzhen markets, covering core leading companies in A-shares, with balanced industry distribution, making it suitable as a &#34;base&#34; allocation for portfolios.
Linked Product: E Fund CSI 300 ETF (510310), one-click allocation of A-share core assets, has the lowest management fee rate (0.15%/year) among all ETF products tracking the CSI 300 in the market, with a full-year return of 20.88% in 2025, exceeding the CSI 300 Index by 3.22%.
STAR 50: Focusing on &#34;Hard Technology,&#34; Layout New Productive Forces
The STAR 50 Index selects 50 companies with large market capitalization and good liquidity from the STAR Market, covering sub-sectors such as computing power infrastructure, chips, and equipment materials required for AI. Since March, the STAR 50 Index has experienced a significant pullback due to its high elasticity and high valuation attributes. If geopolitical conflicts ease, supported by the explosive demand for AI and domestic substitution, its rebound elasticity may become more pronounced.
Linked Product: E Fund STAR 50 ETF (588080), gathering leading companies at the forefront of technology, sharing the dividends of domestic innovation development, has the lowest management fee rate (0.15%/year) among all ETF products tracking the STAR 50 in the market, with a full-year return of 36.58% in 2025, exceeding the STAR 50 Index by 0.66%
ChiNext Index: Gathering Leading Companies in the ChiNext Board, Representing Growth Benchmarks
The ChiNext Index is composed of 100 stocks with large market capitalization and good liquidity from the ChiNext board. Since March, it has shown strong resilience supported by the two high-growth sectors of energy storage and optical modules, despite fluctuations. As of March 31, the price-to-earnings ratio of the ChiNext Index remains at approximately the 34th percentile since the base date, which is relatively reasonable in horizontal comparison.
Linked Product: ChiNext ETF E Fund (159915), leading in scale (CNY 51.3 billion) among comparable products tracking the ChiNext Index in the entire market, with the lowest management fee rate (0.15%/year), gathering leading companies in the ChiNext board, with over 40% of its allocation in the two high-growth sectors of energy storage and optical modules (as of March 31, 2026).
Short-term fluctuations and disturbances have always been the norm in investing. In a phase where it is difficult to grasp the main industry line and external uncertainties remain high, configuring equity assets through core broad-based indices for the medium to long-term direction may be more important than single-point bets. If &#34;uncertainty&#34; is the current market's backdrop, then the aforementioned core broad-based indices can still serve as a &#34;ballast&#34; choice for laying out future market opportunities

510510

159919

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The A-share market experienced significant volatility in the first quarter of 2026, rising at the beginning of the year due to the performance of technology and pro-cyclical stocks, but then fluctuating downwards due to geopolitical conflicts. Investors faced difficulties in making choices, and the market's expectations of risk have been partially priced in. It is recommended to participate in the subsequent rebound through broad-based indices amid the volatility. Looking back at the first quarter, the market went through three phases: from spring excitement to fluctuations and then to a sharp drop and rebound, with external disturbances intensifying and industry rotations accelerating

腾讯新闻 - 财经

GF CSI 500 ETF

Harvest SZSE SME-ChiNext Composite 300 ETF

SSE Index

Huatai-PB CSI 500 Enhanced Strategy ETF

Eastmoney Fund CSI 500 ETF

Huatai-PB CSI 300 ETF

E Fund CSI 300 ETF Initiating Fund

E Fund CNI Value 100 ETF

SSE 50

CSI 500

Fortune SG SSE 180 Value ETF

CSI 300

China Southern CSI 500 ETF

Chasing hot topics until "legs go weak"? Try a different approach in the second quarter to break the deadlock!