The three major A-share indexes collectively made a correction today (March 4). As of the close, the Shanghai Composite Index fell 0.98%, losing 4,100 points, the Shenzhen Component Index fell 0.75%, and the ChiNext Index fell 1.41%. The turnover of Shanghai, Shenzhen and Beijing was 2.39 trillion yuan, a decrease of nearly 770 billion yuan from yesterday.
On the market, the agricultural concept is active, with many stocks in the seed industry sector hitting the daily limit. The only agriculture, animal husbandry and fishery ETF (159275) in the market bucked the trend and rose 1.81%; the military industry quickly counterattacked, with military industry ETF Warbao (512810) and general aviation ETF Warbao (1 59231) both rose by more than 1% on the market; AI computing power detonated the demand for electricity, and the power grid sector continued to be active. The core asset of "HALO"-power ETF Huabao (159146) closed up nearly 1% on the market, hitting a new listing closing high. In terms of decline, brokerage stocks fell across a large area, and the price of brokerage ETF (512000) fell by more than 2%.
In the past two days, A shares have performed poorly. China Galaxy Securities stated that the violent fluctuations in A-shares are not a trend change, but a concentrated release of short-term emotions under the superposition of external pressures. The mid- to long-term market's upward trend has not changed. It will gradually return from "emotion-driven" to "fundamental-driven", showing an operating pattern of "shock digestion, momentum improvement, and structural focus." The current valuation of A-shares is still at a reasonable level, long-term funds are gradually entering the market, and the market's mid- to long-term positive trend is clear. *
Regarding the specific allocation direction of the market outlook, Ping An Securities pointed out that the impact of macro events and fundamentals in March will increase (important meetings, economic data, Trump's planned visit to China, the approaching financial reporting season, etc.), combined with the recent increase in geopolitical risks, and market fluctuations are expected to be amplified. It is recommended to continue to grasp the two main lines of cyclical price increases and technology manufacturing that are supported by the prosperity. *
[Review of all-knowing ETF hot spots] Focus on the transactions and fundamentals of ETFs in industries such as agriculture, animal husbandry, fishery, military industry, and securities companies.
1. Favorable policies have been introduced intensively! The seed industry set off a rising trend, and the Agriculture, Animal Husbandry and Fishery ETF (159275) bucked the trend and rose 1.81%! Institutions: The value of sector allocation has increased significantly
The agriculture, animal husbandry and fishery sector bucked the market trend today (March 4). The only agriculture, animal husbandry and fishery ETF (159275) in the market rose rapidly after opening, and then continued to fluctuate at high levels. As of the close, the price on the market rose by 1.81%.
In terms of component stocks, the seed industry has made a large-scale rally. As of the close, Nongfa Seed Industry and Yasheng Group both hit their daily limit, and Shennong Seed Industry soared 11.19%. Tsuen Yin Hi-Tech, Long Ping Hi-Tech, Denghai Seed Industry and other stocks rose more than 7%.
In terms of news, agricultural support policies have been introduced intensively in many places! On March 3, Fujian issued implementation opinions anchoring agricultural and rural modernization and solidly promoting comprehensive rural revitalization, proposing to improve the quality and efficiency of characteristic modern agriculture development, focusing on grain production and circulation reserves, ensuring the supply of important agricultural products, cultivating tens of billions of characteristic agricultural industry clusters, and improving agricultural product cold chain logistics systems. On March 2, Sichuan issued the No. 1 Provincial Party Committee Document for 2026, clarifying that the annual grain sown area will be stable at more than 96 million acres, and the output will be stable at more than 73 billion kilograms.
Some analysts pointed out that from the perspective of variety fundamentals, the current upward trend in grain prices has been established, the fundamentals of the planting & seed industry are good, and large-scale planting investment opportunities are highlighted.
From a valuation perspective, the current valuation level of the agriculture, animal husbandry and fishery sector is still at a relatively low level, and this may be a good opportunity for sector allocation. Data show that as of the close of yesterday (March 3), the market-wide market's only agriculture, animal husbandry and fishery ETF (159275) underlying index CSI All-Agriculture, Animal Husbandry and Fishery Index had a price-to-book ratio of 2.55 times, which is at the low of the 31.96% quantile in the past five years, highlighting the cost-effectiveness of medium- and long-term allocations.
Looking forward to the market outlook, Huayuan Securities pointed out that agriculture, as the foundation of the country, is one of the few industries with "insufficient domestic supply, price decline in the past few years, asset prices at the bottom and capital withdrawal". Multiple attributes such as "confrontational asset premium" + "relatively independent and smooth industrial logic" + "protection of farmers' income needs" + "the overall sector valuation is at a historical low" have significantly increased the value of sector allocation. *
One-click layout for the reversal of the pig cycle, focusing on the only agriculture, animal husbandry and fishery ETF in the market (159275). According to statistics from the China Securities Index Company, the Agriculture, Animal Husbandry and Fishery ETF (159275) passively tracks the CSI All-Inclusive Agriculture, Animal Husbandry and Fishery Index. The heavyweight stocks include leading stocks in the pig breeding industry such as Muyuan Shares and Wen's Shares, and also cover major sub-sectors of the agriculture, animal husbandry and fishery industry chain such as feed, grain planting, and animal health. Off-market investors can also invest in the agriculture, animal husbandry and fishery sector through the Agriculture, Animal Husbandry and Fishery ETF Feeder Fund (Class A 013471/Class C 013472).
2. OpenAI joins hands with the Pentagon, military AI is booming! Military ETF Huabao (512810) bucked the trend and gained 2%! Aerospace Rainbow has 2 boards in 3 days, a record high for medium-sized UAVs
After the heavy setback, the military industry quickly counterattacked and returned to the top of the industry growth list! The main force took action upon hearing the news and made a large-scale return. The net purchase of the national defense and military industry exceeded 8.1 billion yuan throughout the day.
The core asset of the military industry – the military industry ETF Huabao (512810) opened low and moved high. It once bucked the trend and surged more than 2%, closing up 1.28% to regain its 20-day moving average. The amplitude exceeded 4.3% throughout the day, showing its high elasticity and high volatility. It is worth noting that in the past two days, a total of more than 94 million yuan was added to the position.
Aerospace, ground military equipment, and navigation equipment-related stocks were among the top gainers. China UAVs soared more than 18% during the session, hitting a record high. Aerospace Rainbow rose to its daily limit of 2 boards in 3 days, Guoke Military Industry rose 7.62%, and Zongshen Power, China Dynamics, Highlander and other stocks rose more than 5%.
In terms of news, international geopolitical conflicts have continued to escalate recently, and the military industry has continued to pay high attention. Analysts believe that intensified geopolitical risks will further strengthen expectations for military expenditure growth, and the certainty of procurement pace and scale will significantly increase. China's military trade may welcome opportunities for structural expansion.
According to media reports, OpenAI has reached an agreement with the U.S. Department of Defense to deploy its AI model on the Pentagon’s confidential network. The analysis pointed out that countries around the world are rushing to promote the application of AI in the military industry. AI has shown a revolutionary impact on national defense security, reshaping a new paradigm of national defense security, and the construction of systematic and intelligent equipment is expected to be strengthened.
[To invest in the military industry, choose "August 1"] The military ETF Huabao (512810) (formerly the National Defense and Military Industry ETF) with the code "August 1" brings together cutting-edge military technology in "sea, land, air and space" and comprehensively covers popular topics such as "commercial aerospace, large aircraft, low-altitude economy, satellite navigation, military informatization, controllable nuclear fusion". It is also the subject of margin financing and securities lending + interconnection, and is an efficient tool for one-click investment in core military assets.
3. Opportunities breed in dormancy! Brokerages hit a new low, institutions remind: It is necessary to seize the cost-effective layout window
The Shanghai Stock Exchange Index shrunk and closed below 4,100 points. The brokerage sector pulled back with the market, and individual stocks fell on a large scale. The price of the 38.5 billion top brokerage ETF (512000) fell by more than 2%, hitting a new low since July 2025.
As of the latest, the price-to-book ratio PB (LF) of the CSI Securities Company Index tracked by the brokerage ETF (512000) is only 1.4 times, falling back to the low range of 31.51% in the past 10 years. At the same time, funds are showing more obvious signs of "buying the dip". Data from the Shanghai Stock Exchange shows that the brokerage ETF (512000) has received a cumulative net inflow of 454 million yuan in the past five days.
In fact, since the second half of 2025, the brokerage sector has shown a stagflation trend with a significant mismatch between performance growth and valuation. The influence of market theme preferences and financial constraints may be the main reasons. As the sector once again reaches a cost-effective range, institutions suggest that multiple factors are expected to support the upward momentum of securities firms.
① Performance has maintained high growth, and market transactions have remained high. In 2025, the net profits attributable to shareholders of many securities companies have reached a record high. Since the beginning of the year, various market indicators have grown strongly year-on-year. It is expected that the performance in the first quarter of 2026 will continue to show high flexibility.
② Industry integration is accelerating. Soochow Securities recently announced the integration of Donghai Securities, marking a new stage of securities mergers and acquisitions in the region. As the first year of the "15th Five-Year Plan", 2026 is expected to accelerate the integration process of the securities industry and promote high-quality development of the industry.
③ The valuations and positions of the brokerage sector are at historically low levels, and institutions’ allocation ratios to brokerages are mismatched with industry prosperity. In the future, driven by factors such as the continued implementation of public offering benchmarks, the sector is expected to gain upward elasticity.
At present, despite the rise in short-term geopolitical risks, supporting factors such as the domestic two sessions, loose liquidity, and profit restoration are still there, and the market may be gaming the expectations of easing policies. Great Wall Securities pointed out that the brokerage sector is in the stage of "high prosperity + low central valuation + marginal easing of capital suppression". In the short term, it is likely to fluctuate with high market fluctuations, but in the medium term, it is still on an upward channel of valuation repair, with high cost performance. *
If there is a market trend, buy a broker! The Brokerage ETF (512000) and its feeder funds (Class A 006098; Class C 007531) passively track the CSI All-Inclusive Securities Company Index, covering 49 listed brokerage stocks with one click. It is an efficient investment tool that concentrates on leading securities firms while also taking into account small and medium-sized securities firms. The latest fund size of the Securities ETF (512000) exceeds 38.5 billion yuan, and the average daily trading volume during the year exceeded 1.1 billion yuan. It is the top securities industry ETF with the largest A-share scale and liquidity.
Note 1: When investors subscribe and redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%, which includes relevant fees charged by stock exchanges, registration agencies, etc. Please refer to the legal documents of each fund for details of fund rates.
Note 2: The only agriculture, animal husbandry and fishery ETF in the market (159275) refers to the only ETF that tracks the CSI All-Inclusive Agriculture, Animal Husbandry and Fishing Index.
Reminder: The market may be volatile in the near future, and short-term increases and decreases do not predict future performance. Investors are requested to invest rationally based on their own financial situation and risk tolerance, and pay close attention to position and risk management.
* Sources of reference materials for institutional views: ① Galaxy Securities' March 3, 2026 strategic research "The "positive and negative hands" of A-share market fluctuations and investment prospects"; ② Ping An Securities' March 3, 2026 strategic allocation research "Grasping the two main lines of cyclical price increases and technological manufacturing that are supported by the economy" ; ③ Huayuan Securities' regular report on the agriculture, forestry, animal husbandry and fishery industry on March 3, 2026 "Pork prices continue to decline, and cycle reversal can be expected"; ④ Great Wall Securities 20250303 "Accelerate the merger and acquisition of local state-owned assets and continue to build a first-class investment bank – Comments on Soochow Securities' proposed acquisition of Donghai Securities".
Risk warning: The general aviation ETF Warbao passively tracks the National Securities General Aviation Industry Index, the index's base day is 2012.6.29, and was released on 2012.12.28; the Agriculture, Animal Husbandry and Fishery ETF passively tracks the CSI All Agriculture, Animal Husbandry and Fishery Index, the index's base day is 2004.12.31, and was released on 2016.12.12; the military industry ETF Warbao passively tracks the CSI Military Industry Index, the index The base day is 2004.12.31 and was released on 2013.12.26; the power ETF Huabao passively tracks the CSI All-Share Electric Power Utilities Index, which has a base day of 2004.12.31 and was released on 2013.7.15; the brokerage ETF passively tracks the CSI All-Share Securities Company Index, which has a base day of 2007.6.29 and was released on 2013.7.15. The composition of index constituent stocks is adjusted in a timely manner according to the index compilation rules, and its backtested historical performance does not predict the future performance of the index. The individual stocks mentioned in the article are only an objective display of index constituent stocks and do not serve as recommendations for any individual stocks. They do not represent the investment direction of the fund manager or fund. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must be responsible for any independent investment decisions. In addition, any opinions, analyzes and predictions in this article do not constitute any form of investment advice to readers, and we are not responsible for any direct or indirect losses caused by the use of the content of this article. Investors should carefully read fund legal documents such as the "Fund Contract", "Prospectus", "Fund Product Information Summary", understand the risk and return characteristics of the fund, and choose products that are consistent with their own risk tolerance. The past performance of a fund does not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. According to the fund manager's assessment, the risk level of the military ETF Warburg, the general aviation ETF Warburg, the agriculture, animal husbandry and fishery ETF, the power ETF Warburg, and the brokerage ETF are R3-medium risk and are suitable for balanced (C3) and above investors. Please refer to the sales agency for suitability matching opinions. Sales agencies (including direct sales agencies of fund managers and other sales agencies) conduct risk assessments on the above funds in accordance with relevant laws and regulations. Investors should pay attention to the suitability opinions issued by the fund managers in a timely manner. The opinions on suitability of each sales agency are not necessarily consistent, and the fund product risk level evaluation results issued by the fund sales agencies must not be lower than the risk level evaluation results made by the fund manager. There are differences in the fund risk-return characteristics and fund risk levels in the fund contract due to different considerations. Investors should understand the risks and returns of funds, carefully select fund products based on their own investment purposes, duration, investment experience and risk tolerance, and bear their own risks. The registration of the above funds by the China Securities Regulatory Commission does not indicate that it has made a substantial judgment or guarantee on the investment value, market prospects and income of the fund. Fund investments must be made with caution.
