Broad-based ETFs reappear with high-volume support for the market. On January 8th, the Shanghai Composite Index fell below 3200 points. Just when market sentiment was low, in the afternoon session, core broad-based ETFs such as the CSI 300 ETF and the CSI 500 ETF led the way with high trading volume, and major indexes rebounded accordingly. By the closing bell, there were 23 ETFs in the market with trading volumes exceeding 10 billion, with the Huatai Bairui CSI 300 ETF leading with a trading volume of 5.441 billion yuan. The Huaxia Chi K50ETF, E Fund ChiNext ETF, Guotai Chi A500 ETF, and Huaxia Chi A500 ETF all had trading amounts exceeding 4 billion yuan. In terms of trading volume, the A500 index has seen a significant increase in volume recently, with turnover rates reaching 20%, reflecting the level of activity in this index by investors. Broad-based ETFs continue to see high trading volume, driving a V-shaped market reversal, especially in the ChiNext Index, which rebounded after falling more than 3% at one point during the day, finishing with a decrease of 0.98%. The total turnover of the Shanghai and Shenzhen stock markets for the day was 1.24 trillion yuan, with an increase of 166.3 billion yuan compared to the previous trading day. Stock ETFs see a net inflow of 40 billion yuan since the beginning of the year Broad-based ETFs continue to attract investors, with a significant increase in trading volume. Since the beginning of the year, while the Shanghai Composite Index has fallen by 3.63%, funds have been continuously entering the market through ETFs. As of January 7th, the total net inflow of funds into stock ETFs reached 40 billion yuan. In the first three trading days of the year, despite the noticeable volatility, there has been a net inflow of tens of billions of yuan into ETFs each day, with a total net inflow of 46.7 billion yuan in the first three trading days. However, on January 7th, the first positive trading day for A-shares, ETFs saw a net outflow of 6.7 billion yuan. From a profit-taking perspective, funds flowed out of growth sector ETFs such as the ChiNext 50 ETF, the CSI 1000 ETF, and the Semiconductor ETF. Core broad-based ETFs continue to attract funds, with 11 ETFs having a net inflow of over 1 billion yuan since the beginning of the year, 10 of which are broad-based ETFs. Among them, the Huatai Bairui CSI 300 ETF saw a net inflow of 4.735 billion yuan, while the Guotai Chi A500 ETF and the E Fund ChiNext ETF both saw net inflows of over 2 billion yuan, reaching 2.249 billion yuan and 2.124 billion yuan, respectively. Funds exhibit cautious behavior ahead of the Spring Festival With 14 trading days left until the Spring Festival, during a period of policy vacuum, fund sentiment is relatively conservative. The latest margin trading data from China Securities Finance shows that margin buying has dropped below one trillion yuan for three consecutive days. On January 6th, margin buying amounted to 79.671 billion yuan, reaching the lowest point since September 24th. The change in margin buying reflects the strength of the market's bullish forces. Since September 24th, margin buying reached a peak of 406.38 billion yuan on October 8th. However, with the muted trading sentiment in the market recently, margin buying has gradually decreased, down by 80% from the peak. On January 7th, margin buying slightly rebounded to 92.772 billion yuan, with a total margin balance of 18.3 trillion yuan, of which margin balance was 18.2 trillion yuan. Institutions point out that the recent market fluctuations are aimed at resolving the pressure of rapid profit-taking from the previous uptrend, while also preemptively interpreting future uncertainties. Each instance of volatility and consolidation is a process of digesting previous gains, creating more potential space for future market trends, and gradually revealing the main trends in the midst of volatility. Institutions emphasize the importance of a dumbbell strategy While the market is still debating the spring frenzy, A-shares are now facing a "late spring chill". In the view of institutions, the policy demands for the stock market by 2025 are very clear - stabilizing real estate and the stock market is a set strategy. The market adjustment at the beginning of the year is expected to attract the attention of decision-makers. The prices of risk assets moving up or down are normal market conditions, and blaming them for it is not very meaningful. Decision-makers have significant expectations regarding the means to achieve established goals and their tolerance for risk, which is of great value for the recovery of the market ecology. At the 3200-point level, where should investors go from here? According to Chu Jinhe fund, compared to timing the market, asset allocation is more important. Asset allocation depends on understanding the core competitiveness of enterprises and the impact of risk premiums. Under established policy expectations, it is the micro-level performance of the market that investors should pay more attention to - this is the basic strategy for asset allocation. Therefore, until there is a substantial change in the essential feature of "from the periphery to the center", capital needs to consider realistic returns, and the dumbbell strategy should not be abandoned. In terms of style selection, Boshi Fund points out that in the short term, A-shares are under pressure and the correction of the excessive crowding in small-cap short-term trading has just begun. With the decline in risk-free rates, funds continue to flow into dividend ETFs, and large-cap low-volatility dividend assets have a relative advantage.