On March 3, despite a broad-based decline in the three major A-share indices with increased trading volume, the 300 Cash Flow Index—which focuses on large-cap blue-chip "cash cow" stocks—bucked the trend to advance 1.5%, marking its third consecutive day of gains and significantly outperforming major broad-market benchmarks. Among mainstream free cash flow indices, this index stood out with exceptional performance, demonstrating strong defensive qualities in a volatile market. The petroleum and petrochemical sector, its largest weighted industry, surged 7.81%, becoming the primary driver of the rally.

The 300 Cash Flow ETF (562080), which closely tracks this index and is the largest and most liquid fund of its kind*, continued its strong performance, climbing 2.67% on heavy volume. It reached an intraday high of 0.710 yuan before closing at 0.693 yuan, setting a new record high. Daily turnover exceeded 126 million yuan. Since its listing on April 7, 2025, the ETF has quietly achieved twelve consecutive monthly gains, reaching new highs a total of 40 times since its inception.

Looking at constituent stock performance, three of the top ten holdings by weight reached the daily upside limit, serving as the core engine for the index's advance. The index's top two weighted stocks, CNOOC (weight 11.17%) and PetroChina (weight 10.86%), both hit the limit-up, as did COSCO Shipping Holdings. Zijin Mining Group, China Molybdenum, and Weichai Power each fell more than 4%, while China Telecom closed slightly higher.

Regarding the recent strong performance, Hu Yijiang, the fund manager of the 300 Cash Flow ETF (562080), stated that it is driven by a combination of short-term geopolitical events and a medium-term revaluation of "HALO" assets. 1) Dual Drivers: Short-Term Geopolitics and Medium-Term HALO Trading In the short term, escalating global geopolitical conflicts have directly pushed up energy and commodity prices, leading to sharp gains in sectors like petroleum and petrochemicals, which are core weighted industries in the 300 Cash Flow Index. From a medium-term perspective, the recently proposed "HALO" trade (Heavy Assets, Low Obsolescence) has become a major theme in global capital markets. Against the backdrop of rapid AI technology iteration, software applications face intense competition, prompting the market to shift towards physical assets that are difficult to disrupt by technology and possess substantial barriers to entry. The constituents of the 300 Cash Flow Index are all large-cap blue-chip companies with abundant cash flows and high asset barriers, perfectly aligning with the core characteristics of HALO assets. 2) Reasonable Valuation and Strong Momentum, but Potential for Increased Volatility The current dividend yield of the 300 Cash Flow Index is 3.4%, near its historical median. From the perspectives of momentum reversal and capital flows, it remains in a phase of strong momentum and accelerating fund inflows. However, it is important to note that it may temporarily deviate from its previous perception as a "low-volatility asset," with volatility expected to rise significantly. 3) Peer Comparison: Purer HALO Attributes In terms of sector distribution, the top five weighted industries in the 300 Cash Flow Index are petroleum and petrochemicals, nonferrous metals, home appliances, automobiles, and transportation—all typical heavy-asset, high-cash-flow sectors. The index construction rules actively exclude the financial and real estate sectors, avoiding distortions in cash flow metrics common with financial assets, and better reflect the characteristics of physical heavy assets with sustained cash flows. The index also exhibits high concentration in its top ten holdings. Compared to peers like the All-Share Cash Flow Index and the 800 Cash Flow Index, the 300 Cash Flow Index is composed entirely of CSI 300 constituents, excluding small and mid-cap stocks, resulting in stronger asset scarcity and higher concentration in its top holdings. 4) Allocation Value: A Core Holding Choice Under Long-Term AI Substitution The fund manager further pointed out that the allocation value of the 300 Cash Flow Index can be viewed under two scenarios: If long-term AI substitution effects are limited: After thematic rallies, the 300 Cash Flow Index is likely to revert to its "low-volatility asset" characteristics. Its reasonable valuation and stable long-term stock selection logic make it an important component of value strategies, suggesting balanced allocation alongside dividend strategies. If long-term AI substitution deepens: In this case, the 300 Cash Flow Index can be seen as containing an embedded call option. While the long-term trend of AI is certain, its internal technological pathways and application developments are constantly evolving. A simpler approach may be to choose a pure "HALO" play that avoids sectors vulnerable to technological disruption.

Investors can consider using the 300 Cash Flow ETF (562080) and its feeder funds (Class A 024367 / Class C 024368) to gain one-click exposure to high-quality "cash cow" assets within the core CSI 300 universe. Note: Recent market volatility may be significant, and short-term price movements are not indicative of future performance. Investors should make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management. Fee Structure: Subscription and redemption agents for the 300 Cash Flow ETF may charge a commission of up to 0.5%. On-exchange trading fees are subject to the rates set by securities firms. For the 300 Cash Flow ETF Feeder Fund Class A, the subscription fee is 1.0% for amounts below 1 million yuan, 0.6% for 1 million (inclusive) to 2 million yuan, and a flat fee of 1,000 yuan for 2 million yuan (inclusive) and above. The redemption fee is 1.5% for holdings under 7 days, 0.5% for 7 days (inclusive) to 30 days, and 0% for 30 days (inclusive) and above. The 300 Cash Flow ETF Feeder Fund Class C charges no subscription fee; the redemption fee is 1.5% for holdings under 7 days and 0% for 7 days (inclusive) and above. A sales service fee of 0.3% applies. Risk Disclosure: This article is based on publicly available information, but the accuracy and completeness of such information are not guaranteed. The content and opinions, derived from historical data analysis, may change in the future. References to specific stocks are for illustrative purposes only and should not be considered investment advice under any circumstances. The 300 Cash Flow ETF passively tracks the CSI 300 Free Cash Flow Index, which has a base date of December 31, 2013, and was launched on November 12, 2024. The fund is issued and managed by Huabao Fund. Selling agents are not responsible for the investment, redemption, or risk management of the product. Investors should carefully read the Fund Contract, Prospectus, and Key Fund Information Document to understand the fund's risk-return profile and select products suitable for their risk tolerance. The fund manager assesses this fund's risk rating as R3-Medium Risk, suitable for Balanced (C3) and higher risk profile investors. Suitability matching opinions are subject to the selling institution. Selling institutions (including the fund manager's direct sales channels and other distributors) evaluate the fund's risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions provided by selling institutions and base their decisions on the matching results. Suitability opinions may vary among selling institutions, and a selling institution's risk rating for the fund cannot be lower than the rating assigned by the fund manager. The fund's risk-return characteristics described in the fund contract and its risk rating may differ due to different assessment factors. Investors should understand the fund's risks and returns, and carefully select fund products based on their investment objectives, time horizon, experience, and risk tolerance, bearing their own risks. The China Securities Regulatory Commission's registration of the fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. The fund manager's views were updated on March 3, 2026, represent their perspective at that time, are subject to change, are for reference only, do not constitute promotional material, investment advice, or a guarantee, and are not legal documents. The fund's past performance and net asset value do not predict future results. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Fund investment involves risks.

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