CSI A50 Index focuses on the "Dragon One" of CSI's tertiary industries. The 50 constituent stocks of the index cover all 11 CSI Tier 1 and 86% of the CSI Tier 2 core leading companies in the industry. The leading companies have distinctive characteristics and a prominent blue-chip style in the market. CSI a50etf E Fund (subscription code: 563083) focuses on the fact that the CSI a50 index is on public sale and can be used as a tool for investors to layout leading companies in various subdivisions of A-shares.
Leading companies can rely on the moat effect to benefit from the resonant increase in industry penetration and market share, and are expected to show stronger ability to ride through cycles. Reflected in the return performance, the excess returns of CSI A50 constituent stocks relative to their respective CSI primary industry indexes in the past ten years have been significant.
Table: The top twenty constituent stocks of CSI a50 have significantly outperformed the corresponding CSI primary industry index in the past ten years
Data source: wind, as of February 8, 2024
The CSI a50 index has determined the leading selection criteria as " Ranked first in the average daily free float market capitalization in the CSI tertiary industry in the past year. This criterion is conducive to screening out potential leaders at an earlier stage. For example, the CSI A50 Index included CATL in June 2020 and Mindray Medical in December 2020. Within half a year after being included in the CSI 50 Index, both CATL and Mindray Medical showed a double-click trend of rising valuations and profits.
Figure: The CSI A50 Index was included in CATL in June 2020
Data source: wind, as of February 17, 2024
Figure: The CSI A50 Index was included in Mindray Medical in December 2020
Data source: wind, as of February 17, 2024 The leading power demonstrated by
CSI A50 Index on February 17, 2024 is also demonstrated in its excellent profitability. Comparing by industry, the central level of net interest rate of CSI A50 Index constituent stocks is higher than the central level of net interest rate of various industries of Wind Quan A, and the relative profit advantages of leading companies are highlighted.
Chart: The median net interest rate level of the CSI A50 constituent stocks in various industries is higher than Windquan a
Data source: wind, as of December 31, 2023
In addition, the compilation rules of the CSI A50 Index require that selected stocks need to be included. Listed companies within the scope of Mainland China Stock Connect. Foreign shareholdings account for 7.0% of the circulating market value of CSI A50 constituent stocks, which is higher than other major broad-based indexes and is conducive to the allocation of core A-share assets by domestic and foreign funds.
Chart: The shareholdings of public funds with heavy holdings as a proportion of the circulating market capitalization of various broad-based indexes
Data source: wind. As of February 17, 2024, the heavy holdings of public funds specifically refer to all the stocks disclosed in the 2023 quarterly reports of all market public funds. The top ten heavyweight stocks
CSI A50 Index gathers leading A-share companies. E Fund CSI A50etf (subscription code: 563083) closely tracks the CSI A50 Index and provides investors with tools to layout leading A-share companies. It is now on public sale!
