Ceasefire for two weeks! The reversal in the U.S.-Iran situation has sparked a sharp rebound in the stock market. The potential opportunity for recovery of the low-fee A500 ETF Huaxia (512050) has attracted significant attention.

On April 8 early trading, market sentiment was boosted by news that geopolitical risks eased. All three major A-share indices rose across the board, with a large amount of capital pouring in. In terms of sectors, technology growth stocks led the rally, with internet insurance, IT services, and components rising in tandem with the precious metals sector; the oil and gas extraction and services sector pulled back. As of 11:04, the A500ETF Huaxia (512050) continued to surge, up more than 3%. During the session, trading value quickly broke above 3 billion yuan. Among its holdings, Bluefocus closed up 20cm at the daily limit; multiple stocks including Xingye Tin & Silver, Jerry Co., Ltd., and Dongshan Precision all hit the 10cm daily limit.

U.S. President Trump agreed to pause the bombing and attacks on Iran for two weeks, on the condition that Iran agrees to “fully, immediately, and safely” open the Strait of Hormuz. Iran said it accepts the ceasefire proposal put forward by Pakistan. The moment the news came out, global stock markets surged across the board. In A-shares, the Shanghai Composite rose more than 1%, the Shenzhen Component rose more than 3%, and the ChiNext Index rose more than 4%. Gold prices surged sharply: international gold at one point rose more than 3%, and silver at one point rose more than 6%.

Xingye Securities said the market does not need to newly doubt that this conflict will evolve into a long-term, expanded, full-scale war due to Trump’s recent remarks and the surge in oil prices. “While there may be an escalation in the short term, the outlook is for a downgrade in the medium term” remains the baseline scenario. For April, the bigger focus should be the opportunity to establish the “market bottom” brought about by a possible escalation in the situation, as well as the chance to start a repair rally. After the two sides enter substantive negotiations, the market will gradually return to normal and “take the lead” in kicking off the recovery.

The A500ETF Huaxia (512050) helps investors build A-share core assets with one click, capturing the dividend from A-share valuation uplift. This ETF has key strengths including low fees (with a total expense ratio of only 0.2%), good liquidity (its average daily trading value over the past year ranks first among comparable products), and large scale (scale of 25.5 billion yuan). It tracks the CSI A500 Index and adopts a two-pronged strategy of industry-balanced allocation and selecting leading companies. It covers all 35 sub-industries of the CSI A500, combining value and growth attributes, and is unafraid of style rotation. Compared with the CSI 300, it is overweight in new-quality productive power sectors such as the AI industry chain, pharmaceuticals and bio, new energy power equipment, and national defense and military industry, giving it a natural “dumbbell” investment profile.

Related product(s): A500ETF Huaxia (512050) 【Over-the-counter connection (Class A: 022430; Class C: 022431; Class Y: 022979)】, A500 Enhanced ETF Huaxia (512370).