On February 6, several index ETF funds saw a significant increase in trading volume. Among them, Huatai Bairui SSE 300 ETF, E Fund ChiNext ETF, Huaxia SSE 50 ETF, Nanfang CSI 1000 ETF, Nanfang CSI 500 ETF, GF CSI 1000 ETF, Huaxia CSI 1000 ETF, and Huaxia SSE Sci-Tech 50 Component ETF had a total trading volume of over 41 billion RMB, with several index ETF funds having a single-day increase of over 6%. On the same day, Central Huijin Investment Ltd. announced that they fully recognize the value of the current A-share market allocation and have recently expanded the range of trading open-end index funds (ETFs) for increased holdings. They will continue to increase holdings and expand the scale of holdings to maintain the stable operation of the capital market. Several ETFs continued to see a significant increase in trading volume, with Huatai Bairui SSE 300 ETF, E Fund ChiNext ETF, Huaxia SSE 50 ETF, Nanfang CSI 1000 ETF, GF CSI 1000 ETF, and Huaxia CSI 1000 ETF all having a trading volume exceeding 4 billion RMB, totaling 41.077 billion RMB. Specifically, as of the close, the trading volume of Huatai Bairui SSE 300 ETF, E Fund ChiNext ETF, Huaxia SSE 50 ETF, Nanfang CSI 1000 ETF, GF CSI 1000 ETF, and Huaxia CSI 1000 ETF reached 6.563 billion RMB, 5.835 billion RMB, 5.560 billion RMB, 5.389 billion RMB, 4.391 billion RMB, and 4.268 billion RMB, respectively. Among the above products, Nanfang CSI 1000 ETF saw a single-day increase of 8.34%, GF CSI 1000 ETF saw a single-day increase of 7.09%, E Fund ChiNext ETF, Nanfang CSI 1000 ETF, Huaxia CSI 1000 ETF, and Huaxia SSE Sci-Tech 50 all had a single-day increase of over 6%. It is worth noting that Huatai Bairui SSE 300 ETF, E Fund ChiNext ETF, and Huaxia SSE 50 ETF saw a significant increase in shares compared to January 2, 2024, with Huatai Bairui SSE 300 ETF seeing an increase of over 10 billion shares, and E Fund ChiNext ETF and Huaxia SSE 50 ETF both seeing an increase of over 9 billion shares. National Team intervention, pushing the market towards stability and recovery On February 6, Central Huijin Investment Ltd. announced that they fully recognize the value of the current A-share market allocation. They have recently expanded the range of trading open-end index funds (ETFs) for increased holdings and will continue to increase holdings and expand the scale of holdings to maintain the stable operation of the capital market. After the announcement from Central Huijin Investment Ltd., the China Securities Regulatory Commission issued information through a Q&A session, stating that the current valuation level of the A-share market is at a historical low, showing long-term investment value and receiving full recognition from investment institutions including Central Huijin Investment Ltd. Chen Guo, Chief Strategy Analyst at CITIC Securities, believes that the announcement from Central Huijin Investment Ltd. reflects the full recognition of the current A-share market allocation value. Recent meetings and measures show the determination of the policy level to promote the stable and healthy development of the capital market. Combining recent PMI and other data, the economic fundamentals are expected to gradually show a stable recovery trend. Gao Ruidong, Chief Economist at Everbright Securities, stated that Central Huijin Investment Ltd. expanding the range of trading holdings shows the firm determination of the country to maintain the stability of the capital market, which is another strong measure of support for the capital market. With the economy gradually stabilizing and improving, the increased entry of long-term funds into the market is expected to resolve market fund risks, such as market capital speculation, and help restore market investor risk preferences, pushing the market towards stability and recovery. Guo Lei, Chief Economist at GF Securities, believes that the capital market plays a pivotal role, and its stability helps improve micro expectations. The announcement from Central Huijin Investment Ltd. has important signaling significance. This move demonstrates the country's determination to maintain the stability of the capital market, as well as the recognition of the long-term value of A-share investments by long-term funds, which will lead to risk preference formation. Liu Jun from Huatai Bairui Fund believes that since the beginning of the year, amidst the relative weakness in the A-share market, Central Huijin, as a representative of China's long-term institutional investors, has significantly increased its ETF holdings against the trend, showing a strong confidence in the future performance. This to some extent indicates that the capital market has entered a deep value range, with allocation value highlighted.