On July 10th, the three major A-share indices diverged in the morning session. The Shanghai Composite Index rose 0.76% after fluctuating, while the ChiNext and STAR 50 indices initially climbed before retreating. Influenced by the broader market's style, the Huatai-PineBridge Low Volatility Dividend ETF (512890) gained 0.45% to 1.110 yuan. Its turnover rate reached 1.32%, with a half-day trading volume of 4.39 billion yuan, ranking first among similar ETFs.
Looking at the holdings of the Huatai-PineBridge Low Volatility Dividend ETF (512890), its top ten holdings showed mixed performance by the midday close. Bank of Shanghai fell 0.11%, Bank of Nanjing declined 0.09%, Ping An Bank rose 0.10%, Shanghai Rural Commercial Bank dropped 0.13%, China Resources Jiangzhong gained 0.08%, CNOOC Ltd. advanced 1.65%, PetroChina fell 1.38%, China Minsheng Bank increased 0.91%, and Bank of Chengdu rose 1.01%.
In terms of market news, the A-share banking sector has faced sustained pressure since 2026. As of the close on July 9th, all 42 listed banks were trading below their net asset value per share. Amid this price adjustment, various types of capital have shown differing attitudes. While many funds have increased their allocations to the sector this year, others have chosen to reduce holdings based on their own assessments. Industry insiders believe there is still room for further increases in the allocation ratio and investment intensity of insurance capital in the banking sector.
Analyst Perspectives on Strategy
Liu Chenming, Chief Strategy Analyst at GF Securities, stated that when selecting among major asset classes, the focus for at least the second half of the year will remain on the broad direction of artificial intelligence. While there have been recent rapid and significant adjustments causing some concern, the industry fundamentals remain very strong. From a short-term perspective, a decline of around 20% is already quite substantial. Some segments may need time to consolidate and digest the move, but the overall trend is not yet over. For investors unwilling to bear high volatility or who find the technology sector difficult to understand, and who are solely seeking absolute returns, dividend indices, dividend ETFs, and related enhanced funds at current price levels offer better value compared to cash, time deposits, and wealth management products, and can serve as alternative allocations.
CITIC Securities pointed out that the A-share market is likely to continue its volatile pattern. Diverging trends in US inflation and employment data have added new uncertainty to the Federal Reserve's monetary policy path. The market currently leans towards the view that the federal funds target rate will remain elevated for a longer period. Although the timing of rate cuts has been repeatedly pushed back, the room for further rate hikes is also extremely limited, so overall excessive concern is unwarranted. During this high-volatility period for AI computing hardware, there are market worries about peak AI computing demand or a downturn in industry sentiment. However, judging from the industry's supply-demand dynamics, the long-term drivers for AI computing demand have not been damaged by Meta's single action, and key bottlenecks continue to constrain the release of effective supply. Against this backdrop of overlapping verification and vacuum periods, market trends are expected to extend from the extremely concentrated AI hardware sector to areas with better value, forming a diffusion pattern of "rotation from high to low, with multiple sectors flourishing." Key sectors to watch include: AI (semiconductors, optical communications, MLCCs, etc.), robotics, securities firms, non-ferrous metals, and dividend assets.
A Stable Tool for Volatile Markets
As a stable asset allocation tool in volatile markets, the Huatai-PineBridge Low Volatility Dividend ETF (512890) was established on December 19, 2018. Its benchmark is the CSI Dividend Low Volatility Index. The fund manager is Liu Jun. As of July 9, 2026, its five-year return was 49.25%, outperforming its benchmark and ranking 122nd out of 1,067 comparable products. Investors can consider the Huatai-PineBridge Low Volatility Dividend ETF (512890) as a core holding. Investors without a stock trading account can also access it through its corresponding feeder funds (Class A: 007466; Class C: 007467; Class I: 022678; Class Y: 022951).
Risk Warning: Funds carry risks, and investment requires caution. Past performance is not indicative of future results. Before making any investment decisions, investors should carefully read the fund contract, prospectus, and other relevant documents, and invest rationally based on their own risk tolerance.