The Shanghai Composite Index accelerates its correction in the afternoon, and the battle to defend 3,900 points is reignited! The major market index, CSI 300 ETF, attracts significant attention.

Why has the CSI 300 ETF become the preferred safe haven in a volatile market?

On March 26, after a rapid recovery, A-shares returned to fluctuations, with the Shanghai Composite Index accelerating its adjustment in the afternoon, and the defense of the 3900-point mark was once again initiated.

China Merchants Securities published the latest asset allocation research view: current trading is concentrated on geopolitical factors and potential “stagflation” risks, with volatility outweighing trends. In terms of style, the current concentration of thematic trading has shown significant divergence, and combined with signals of a converging valuation distribution, small-cap stocks face greater risks in the short term. In contrast, the concentration of mid and large-cap stocks has significantly increased, and the market may have entered a “trading certainty” phase.

Both large and small-cap styles are facing high cuts to low, and investors can take advantage of dips to allocate to the large-cap value style representative index—the CSI 300—which provides balanced coverage of leading sectors such as technology, cyclical, finance, and consumer. It offers risk diversification, strong resilience, and shock resistance, making it a long-term holding tool for both domestic and foreign institutions, as well as the preferred asset for stabilizing funds in extreme market conditions.

So far, there are over 30 ETF products that passively track the CSI 300 Index, among which the CSI 300 ETF managed by Huaxia Fund (510330.SH) offers superior liquidity and has the lowest management fee rate of 0.15% per year. Out-of-market fund investors can also invest in Huaxia CSI 300 ETF Connect C (005658.OF) during dips, which has no subscription fee and no redemption fee after holding for more than 7 days.