
The A-shares are expected to continue attracting incremental funds in 2025, with the A50 ETF Huabao "raising" 49.48 million yuan yesterday
On January 8th, the market rebounded after hitting a low in the afternoon, with A50 ETF Huabao closing down 0.47% and a trading volume of 190 million yuan. In terms of constituent stocks, the top ten heavyweights showed mixed performance. On the upside, Midea Group led the gains, followed by Changjiang Electric Power; on the downside, BYD led the declines. In terms of capital flow, A50 ETF Huabao saw a net inflow of 49.48 million yuan yesterday. Industrial Securities believes that A-shares are expected to continue attracting incremental capital in 2025. Currently, the proportion of stocks and funds in residents' total asset allocation remains relatively low. With the trend of residents' wealth and industrial capital flowing into the stock market for reallocation, the A-share market is expected to welcome more incremental capital. In addition, foreign capital's allocation in A-shares is still at a historically low level. As A-shares warm up, economic expectations improve, and fundamentals stabilize, position replenishment will drive foreign capital to continue flowing back into the Chinese market
