
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)

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

