Institutions say Chinese assets have a triple "safety premium," focusing on opportunities in free cash flow ETFs Huaxia (159201) and CSI 500 Cash Flow ETF Huaxia (560120).

On March 26, the main A-share indices opened lower and then turned positive. Indices related to free cash flow performed well, with the Guozheng Free Cash Flow Index rising about 0.3% during the trading session. Leading stocks included Min Energy and Nanjing New Hundred. The CSI 500 Free Cash Flow Index increased about 0.2%, with stocks like Huafeng Chemical and COSCO Group leading the gains.

Regarding related ETFs, the largest free cash flow ETF by scale, Huaxia (159201), attracted over 1.9 billion yuan in net inflows over the past 10 trading days, showing significant capital allocation. The only CSI 500 Free Cash Flow ETF tracking the same index, Huaxia (560120), received over 620 million yuan in net inflows during the same period, reaching a new high since its inception.

Looking ahead, Dongfang Securities’ research report suggests that amid the global asset risk reassessment, Chinese assets offer a triple “safety premium” due to stable energy supplies, export advantages, and liquidity growth. Risk assessments are steadily declining, and Chinese assets remain relatively advantageous.

In the current environment of global geopolitical uncertainty combined with an “asset shortage,” the Free Cash Flow Index, with its stable cash flows and valuation advantages, is expected to become one of the core allocation options. Additionally, under continued policy support and improving economic prospects, assets benefiting from rising prices can continue to benefit. Investors may consider paying attention to dividend-plus assets: Huaxia Free Cash Flow ETF (159201) and CSI 500 Free Cash Flow ETF Huaxia (560120).

Daily Economic News