Cash flow assets may迎 a triple "revaluation" window! The All-Index Cash Flow ETF Huatai-PineBridge (563390) has attracted over 100 million yuan in net inflows for four consecutive trading days.

In the face of ongoing external disturbances, free cash flow assets with relatively good fundamentals that align with the HALO hard asset allocation theme are gradually becoming the “new favorites” for capital. Among them, the first batch of ETFs tracking the CSI All Share Free Cash Flow Index, Huatai-PineBridge (563390), has recorded over 100 million in daily inflows for four consecutive trading days as of March 18, 2026, becoming the only product among all ETFs tracking the CSI All Share Free Cash Flow Index during the same period with net inflows exceeding 600 million.

Looking at a longer time frame, the Huatai-PineBridge All Share Free Cash Flow ETF (563390) has seen net capital subscriptions on 45 out of the 47 trading days this year, accumulating 2.836 billion in inflows, pushing the fund’s shares and scale to 2.590 billion shares and 3.639 billion, respectively, both hitting historic highs.

Currently, cash flow assets are facing a revaluation opportunity driven by three resonating logics: On a macro level, we are currently in the accelerating phase of a Kondratiev wave depression, with increasing global uncertainty, making cash flow assets, as scarce “certain assets,” likely to demonstrate their allocation value; on an industrial level, as China’s economy enters a mature industrial phase, companies are strong in cash flow generation but with decreasing capital expenditure needs, combined with “anti-involution” to curb ineffective expansion, companies’ ability to retain cash may be simultaneously enhanced; on a financial level, the onset of a Federal Reserve interest rate cut cycle will guide cross-border capital backflow, and the preferences of both domestic and foreign capital for high-quality cash flow supply are likely to resonate. Against this backdrop, free cash flow assets represented by the Huatai-PineBridge All Share Free Cash Flow ETF (563390) are expected to undergo accelerated revaluation.

According to Wind data, since its base date (December 31, 2013), the CSI Cash Flow Total Return Index has accumulated a growth rate of 848.59%, with an annualized growth rate of 20.87%, surpassing the annualized performances of 15.87%, 15.86%, and 20.77% for the 300 Cash Flow Total Return, 500 Cash Flow Total Return, and 800 Cash Flow Total Return indices, respectively, indicating a remarkable long-term trend.

Additionally, on March 16, 2026, the CSI Cash Flow Index completed its quarterly rebalancing, with the top three industries changing to automotive (11.8%), transportation (11.2%), and oil & petrochemicals (9.6%), all of which are cash-rich and have excellent dividend-paying capabilities. As of the latest update, the index’s dividend yield has risen to 3.70%, significantly widening the yield spread compared to the current 1.82% yield of ten-year government bonds, potentially enhancing its attractiveness in an asset-scarce environment.

According to the announcement from Huatai-PineBridge, the cash flow ETF (563390) will change its on-market abbreviation to “Huatai-PineBridge All Share Free Cash Flow ETF” starting March 18, 2026, aligning the index name with the product abbreviation for clearer investment positioning. As one of the first ETF managers in China, Huatai-PineBridge is among the earliest fund companies to layout dividend strategy ETFs, possessing over 19 years of deep operational management experience in the Smart Beta strategy field. Besides the Huatai-PineBridge All Share Free Cash Flow ETF (563390), it has also developed a total of five Smart Beta strategy “dividend family” products, including the market’s first (established on December 19, 2018) low-volatility dividend theme ETF—Huatai-PineBridge Low Volatility Dividend ETF (512890), and the first (established on November 6, 2017) Smart Beta ETF—Huatai-PineBridge Dividend ETF (510880). Exchange data shows that as of March 18, 2026, the total scale of its dividend ETFs has reached 53.116 billion.

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