At the beginning of September, the popularity of the CSI A500 Index has risen rapidly. The index itself will be released on September 23, 2024 before the National Day, and ETF products tracking the CSI A500 Index have also been launched recently, which may bring valuable insights

html At the beginning of September, the popularity of the CSI A500 Index has risen rapidly. The index itself will be released on September 23, 2024 before the National Day, and ETF products tracking the CSI A500 Index have also been launched recently, which may bring valuable insights to the A-share market. Incremental funds have boosted the "Golden Nine and Silver Ten" market trends in the A-share market. The difference between

(1) and the CSI a50 index

When it comes to the CSI a500 index, many investors may think of the CSI a50 index released on the first trading day of 2024. What is the difference between the two?

Since both the CSI a50 and CSI a500 indexes adopt the industry-balanced index compilation concept, if the 50 constituent stocks of the CSI a50 are leading companies in various industries, then the 500 constituent stocks of the CSI a500 index The layout is for "elite" companies in various industries of .

For example, the CSI a50 index constituents can be compared to the " gold medal" players of the last Olympic Games, and the CSI a500 index constituents can be compared to the medalists of the last Olympic Games, including gold and silver. bronze medal.

Therefore, the advantage of the CSI A500 Index lies in its wider market coverage of compared to . Why does

(2) publish the CSI a500 index?

Judging from overseas experience, the continued inflow of international capital is an important support for the US stock market. As of April 2024, nearly 50% of the funds in the U.S. stock market come from international capital outside the United States, which is backed by the three major broad-based indexes of the U.S. stock market - S&P, Nasdaq, and Dow Jones Index. The international popularity of .

Domestically, at the 2023 Index Investment Exchange Meeting, relevant departments emphasized the need to " accelerate the improvement of the international influence and competitiveness of local indexes" , thereby guiding incremental funds to flow into the A-share market.

(3) The compilation concept of the CSI a500 index has an "international style"

. For now, the world's major capital market representative broad-based indices, including US stocks, European stocks, Japanese stocks, Korean stocks, and Hong Kong stocks, are all in To a certain extent, the industry balance is considered, in the hope that the index will have better market representation capabilities at different stages of economic development.

Figure: The compilation concept of the CSI a500 index is more international

However, the traditional broad-based index of A-shares often uses simple market value screening,

The CSI a500 index selects 500 securities as index samples based on the free float market value, and maintains The market value distribution of sample first-level industries is as consistent as possible with the sample space, and the compilation concept is in line with international standards.

(4) The constituent stocks of the CSI a500 index have "international style"

The CSI a500 index excludes the constituent stocks below the CSI esg rating c. The esg concept is a language system that is in line with international capital preferences. As of July 2023, the total assets managed by esg-related institutions exceed 100 trillion US dollars. Among the top 50 asset management institutions in the world in terms of asset management scale, 43 are members of the international esg alliance. . Therefore, the constituent stocks of the CSI A500 Index are more in line with the preferences of international funds.

All constituent stocks of the CSI a500 index are within the scope of interconnection , which facilitates the allocation of international funds through Southbound Trading.

Figure: The overseas business proportion of the CSI a500 index constituent stocks significantly exceeds that of the traditional broad-based index

The internationalization level of the CSI a500 index constituent stocks is higher . As of the 2023 annual report, the overseas revenue of the CSI A500 Index accounted for 18.34%, significantly exceeding the traditional A-share broad-based index. In the process of switching the domestic economy from a high-speed growth stage to a high-quality development stage, "seeking growth space in overseas markets" or has become the long-term choice of for my country's internationally competitive enterprises.

(5) The weighted industries of the CSI a500 index are more "international"

The industries where the CSI a500 index is significantly overweighted compared to the CSI 300 index are power equipment (+1.57%) and non-ferrous metals (+1.35%) , medical biology (+1.34%), national defense and military industry (+1.13%), focusing more on the layout of my country's advantageous industries such as lithium batteries, photovoltaics, innovative drugs, domestic large aircraft, and low-altitude economy.

The industries that are significantly underweighted by the CSI A500 Index compared to the CSI 300 Index are non-bank finance (-4.40%), banking (-3.46%), and food and beverage (-1.85%), all of which are traditional "old economy" industries.

Chart: The CSI a500 index overweights the new energy direction of industries with stronger international competitiveness. my country's lithium batteries and photovoltaic industry chain have a global market share of more than 60%. In the direction of innovative drugs, the R&D capabilities of my country's domestic innovative pharmaceutical companies have continued to gain international recognition, and the number and value of "overseas" transactions have increased year by year. In the direction of national defense and military industry, my country's domestically produced large aircraft has recently received positive feedback from the EU certification. In the process of reshaping the global industrial chain, many manufacturing companies in our country have taken the lead and their position in the global value chain has gradually moved up, which represents the enhancement of my country's international competitiveness .

Risk warning

2. The fund may face various risks during the investment operation process, including market risks, as well as the fund's own management risks, technical risks and compliance risks, etc. Huge redemption risk is a risk unique to open-end funds, that is, when the net redemption application of a single open-end fund exceeds a certain proportion of the total fund shares (10% for open-end funds and 10% for regular open-end funds) 20, except for special products specified by the China Securities Regulatory Commission), you may not be able to redeem all the fund units you applied for in a timely manner, or the payment of your redemption may be delayed.