On August 10, the three major A-share indices showed divergent movements, with the Shanghai Composite Index rising 0.20% by midday, while the ChiNext Index fell 2.18%. Against this backdrop, the Huatai-PineBridge Low Volatility Dividend ETF (512890) climbed 0.86% to 1.168 yuan, with a turnover rate of 1.52% and a trading volume of 492 million yuan, ranking first among similar ETFs. According to the latest report, the top ten holdings of the Huatai-PineBridge Low Volatility Dividend ETF (512890) were mostly up in early trading.

By midday, Bank of Shanghai rose 1.09%, Bank of Nanjing gained 0.98%, Ping An Bank increased 1.43%, Bank of Chengdu advanced 1.40%, Gree Electric Appliances was up 1.27%, Bank of Jiangsu jumped 2.07%, Shandong Hi-Speed fell 1.01%, Shanghai Rural Commercial Bank edged up 0.24%, Shaanxi Blower dropped 0.52%, and China Minsheng Bank added 0.28%.

On the news front, the National Bureau of Statistics recently released data showing that in July, the Consumer Price Index (CPI) fell 0.1% month-on-month but rose 0.5% year-on-year. Excluding food and energy prices, the core CPI rose 0.3% month-on-month and 0.9% year-on-year, indicating a generally moderate increase in CPI. Meanwhile, the Producer Price Index (PPI) fell 0.7% month-on-month but rose 3.5% year-on-year, a 0.6 percentage point slowdown from June. Additionally, the People's Bank of China conducted a 18 billion yuan 7-day reverse repo operation today at an interest rate of 1.40%, unchanged from previous levels. With 63 billion yuan in 7-day reverse repos maturing today, the operation resulted in a net withdrawal of 45 billion yuan.

The Core Strategy: Identify Key Investment Themes

Looking ahead, analysts suggest that the space for a rebound from oversold levels remains, with a focus on the ChiNext Index. The mid-August to late-August period, when interim reports are released, will be a key test of the rebound's strength. In terms of allocation, investors should anchor expectations around these interim reports. The rebound in AI hardware, while still accessible, may be limited by the overhang of mutual fund positions, so exposure should be controlled, with communication equipment as the preferred subsector. Among other oversold categories, energy metals and small metals are worth watching. For sectors that held up relatively well in July, non-bank financials and CXO leaders offer attractive valuations. From a medium-term perspective, the export-oriented supply chain and essential consumer goods are at a favorable entry point for increasing allocation.

Why Emphasize a Core Holding of Low Volatility Dividend Stocks?

Analysts recommend continuing to hold dividend stocks as a core position, with a structural focus on banks and transportation. The market is also noting that high-growth sectors in A-shares often form a "double top" pattern, and the current tech rally may be no exception. Since late June, AI-related sectors like electronics and communications have seen significant corrections, though they have recently stabilized. Discussions about when a second wave of the tech rally might begin are intensifying. Historical data shows that high-growth sectors often form an M-shaped top, with the two peaks about 4-5 months apart, and the secondary peak reaching 80-90% of the primary peak. The second wave of the M-top requires the resolution of industry-level uncertainties and a decline in crowding. Currently, the catalysts for a second wave of the AI tech M-top are building.

After the current volatility, the bull market is expected to continue. Structurally, investors should maintain a balanced allocation, with growth likely to spread to AI applications. Dividend stocks, along with fundamentally sound sectors like pharmaceuticals, securities, and sectors benefiting from domestic demand policies, should be emphasized. As a stable tool for asset allocation in a volatile market, the Huatai-PineBridge Low Volatility Dividend ETF (512890) was established on December 19, 2018. Its benchmark is the CSI Low Volatility Dividend Index, and it is managed by Liu Jun. As of August 7, 2026, the fund has delivered a five-year return of 62.38%, outperforming its benchmark and ranking 62nd out of 1,132 products. Investors can consider the Huatai-PineBridge Low Volatility Dividend ETF (512890) as a core portfolio holding. Those without a stock account can also allocate through its off-exchange feeder funds (Class A: 007466; Class C: 007467; Class I: 022678; Class Y: 022951).

Risk Warning: Fund investments carry risks. Investors should be cautious. Past performance does not guarantee future results. Before making investment decisions, investors should carefully read the fund's contract, prospectus, and other documents, and invest rationally based on their own risk tolerance.