Cash flow assets or are the preferred breakwater to cope with market rotation, while the full-指 cash flow ETF Penghua (512130) has received much attention

**Note:** The term "全指现金流ETF" (full-指 cash flow ETF) appears to reference a specific Chinese ETF product name. If "全指" should be translated as "broad-based" or "comprehensive," the translation would be:

Cash flow assets are the preferred breakwater to cope with market rotation, while the broad-based cash flow ETF Penghua 512130 has received much attention

The CSI Cash Flow Index opened slightly higher today but quickly plunged. Although there was a brief recovery during the session, it weakened again in the afternoon, ultimately closing down 1.23%. The 800 Cash Flow Index fell 1.20%. Both underperformed the CSI 300 (+0.05%) and the Shanghai Composite Index (-0.26%).

Institutions pointed out that today’s A-shares bottomed out and rebounded, showcasing an extreme “see-saw” switch. Technology sectors, represented by semiconductors and storage chips, remained strong and attracted significant capital. Meanwhile, cyclical sectors such as non-ferrous metals, coal, and large infrastructure experienced concentrated profit-taking. Under the influence of the “cyclical retreat and growth rebound” style, the heavily resource- and value-oriented cash flow index faced significant pressure. However, as high-positioned cyclical stocks are cleared out, cash flow assets with solid earnings and strong performance support will further highlight their cost-effectiveness, remaining a preferred hedge against market rotations.

Leading sectors include shipping, with scattered representation in home furnishings, forestry, and motorcycles. Specifically: 1) Shipping: Since the Middle East situation escalated in late February, causing the Strait of Hormuz to close, container freight rerouting has surged over 360%, with fuel price increases driving up freight rates. 2) Home furnishings: Expectations for real estate policies have risen, and the home furnishings sector is in a bottoming phase, with valuation potentially entering a recovery cycle.

Laggard sectors mainly include electrical equipment, chemicals, and non-ferrous metals, reflecting reduced investor interest due to the lack of new catalysts and adjustments in previously hot sectors.

As of 15:00 on March 16, 2026, the constituent stocks of the CSI All Share Free Cash Flow Index (932365) showed mixed gains and losses. China Merchants Oil led with a 10.07% increase, Yaxing Integration rose 10.00%, and Oppein Home Group gained 5.01%. Conversely, Hengdian DMEGC fell 8.32%, CITIC Special Steel declined 6.21%, and Chint Electric dropped 6.13%. The latest quote for the Penghua CSI Cash Flow ETF (512130) is 1.37 yuan.

In terms of liquidity, the Penghua CSI Cash Flow ETF had a turnover rate of 1.22% during the session, with a trading volume of 334,900 yuan. Looking at a longer timeframe, as of March 16, the average daily trading volume over the past year for the Penghua CSI Cash Flow ETF was 2.9401 million yuan.

The Penghua CSI Cash Flow ETF closely tracks the CSI All Share Free Cash Flow Index, which selects 100 listed companies with high free cash flow rates as its sample. The index aims to reflect the overall performance of companies with strong cash flow generation capabilities.

Data shows that as of February 27, 2026, the top ten holdings of the CSI All Share Free Cash Flow Index (932365) were China National Offshore Oil, SAIC Motor, Gree Electric Appliances, COSCO SHIPPING Holdings, Aluminum Corporation of China, TCL Technology, Muyuan Foods, Chint Electric, Baosteel, and Great Wall Motors, accounting for a total of 50.26% of the index.