Only four days passed from application to sale, the first batch of CSI A500 ETF funds arrived, and many Chinese and foreign funds participated. On the evening of September 6, ten fund companies including Wells Fargo Fund, Southern Fund, Harvest Fund, Huatai-PineBridge Fund, Ch

Only four days passed from application to sale. The first batch of CSI a500etf funds arrived, and many Chinese and foreign funds participated.

html On the evening of September 6, ten fund companies including Wells Fargo Fund, Southern Fund, Harvest Fund, Huatai-PineBridge Fund, China Merchants Fund, Taikang Fund, Yinhua Fund, Cathay Fund, Invesco Great Wall Fund and Morgan Fund respectively disclosed their CSI The a500etf fund prospectus, share sale announcement and other information will be released on the 10th.

Industry insiders told China Business News that the CSI A500 Index has received industry attention and is known as the "Chinese version of the S&P 500." The market value of component stocks accounts for more than 57% of A-shares. It is biased toward mid- and large-caps while also considering small-caps. It has a relatively high proportion of emerging industries and wide industry coverage.

Morgan Asset Management ETF expert Wang Wei told reporters that the global ETF scale is expected to reach 20 trillion US dollars in the next five years. "China is currently the second largest ETF market in Asia, and the ETF scale is expected to reach 1 trillion US dollars in 2028." ".

"China's S&P 500" is more representative of the industry

In recent years, China's various index compilation methods have been continuously updated and improved, aiming to better reflect China's economic and market conditions.

Compared with traditional indexes such as the CSI 300 and CSI 500, which select samples through market capitalization and turnover, the CSI a500 index adopts an industry balanced sampling method and draws more reference from the S&P 500 index's compilation plan. The proportion of stocks with a market capitalization of less than 30 billion yuan is basically the same as that of stocks with a market capitalization of over 100 billion yuan.

The top ten constituent stocks of the index include: Kweichow Moutai , Ningde Times , Ping An of China , China Merchants Bank , Yangtze Electric Power , Midea Group , Zijin Mining , Industrial Bank , Wuliangye , BYD, gathering representatives of traditional industries and emerging industries.

Han Xiu, the proposed fund manager of Morgan CSI A500ETF, told a reporter: “On the one hand, CSI A500’s refined handling of industry distribution is to align with international standards and create China’s international index; on the other hand, this operation It will make the index better reflect the changes in the capital market structure and industrial transformation and upgrading."

He also mentioned that the ETF has set up a unique quarterly mandatory dividend mechanism. On the last trading day of each quarter, the excess return rate of the ETF relative to the underlying index is positive. , will be forced to distribute dividends, and the distribution ratio will not be less than 60% of the excess rate of return. Generally speaking, one of the important sources of excess returns is dividends from underlying index constituent stocks. The quarterly mandatory dividend mechanism will, to a certain extent, help investors face short-term market fluctuations more calmly and thus more firmly implement long-term concepts.

In recent years, markets around the world have become more and more popular with ETFs as an efficient and low-cost tool for investment allocation. It is expected that this trend will continue in China.

data shows that as of the first half of this year, there were a total of 11,000 ETFs globally, with a scale of more than 12 trillion US dollars. The United States still occupies an absolute dominant position, with a scale of US$8.1 trillion (five-year compound annual growth rate of 19%, the same below); Europe is US$1.8 trillion (a growth rate of 19%); Asia is US$1.4 trillion (a growth rate of 19%) twenty two%).

As far as the Asian market is concerned, ETFs are developing at an annual growth rate of 22%. The largest market is Japan, with ETF scale reaching US$534 billion (compound annual growth rate of 14% in the past five years), mainly contributed by institutional investors. The Bank of Japan holds about 80%, and only 2% is held by individual investors. have. On the contrary, China's ETF investors are mainly individual investors, and the domestic ETF market has reached US$368 billion (a growth rate of 32%).

There are allocation opportunities after the market bottoms out

The issuance of CSI a500etf coincides with the downward stage of A-share shocks. However, after three years of market correction, as the Federal Reserve is about to start cutting interest rates, China's core assets may be ready for allocation.

Recently, high-dividend stocks, mainly banks, coal, petroleum, and communications, have changed from their rapid gains during the year and have experienced a correction. Taking the largest weighted bank stocks in the high-dividend sector as an example, after the release of the interim report, the market's concerns about the narrowing of banks' net interest margins and slowing profits began to heat up. In addition, after the end of dividends, institutions began to take profit.At the same time, growth sectors such as new energy continue to consolidate, and when production capacity will be cleared is the focus of the market.

In this regard, Han Xiu told reporters that banks' net interest margins may fall further, and the decline in profits will put the sector under relative pressure; the coal sector, the second largest high-dividend sector, has generally seen a decline in interim results. The 10-year government bond yield rebounded to some extent after falling below 2.1%, which also caused the market to have some concerns about high-dividend assets. However, most institutions are still optimistic about the high dividend theme.

As far as the new energy sector is concerned, Han Xiuyi believes that the main problems are overcapacity and insufficient power grid consumption, and competitive pressure in the photovoltaic industry still exists. However, some new energy segments such as power grid and overseas sectors performed better. The market has high expectations for the future performance of the new energy sub-sector, especially when the policy and trade environment become clearer, and new opportunities may emerge.

BlackRock Excellence Voyage Hybrid Fund Manager told reporters that the current economic data is relatively dull, domestic demand-related sectors are not favored, and the high dividends of state-owned enterprises have gradually shrunk to the banking sector, and the market trading direction is relatively narrow. At the same time, the market capitalization style continues, with large market capitalization stocks performing better than small market capitalization stocks overall. During the market adjustment process, even some high-quality companies with outstanding competitive advantages, solid operating cash flow, and dividend repurchases have experienced significant declines, and their valuations have returned to an attractive position.

BlackRock believes that the market's short-term emotional reaction is overreaction, and some high-quality stocks that are not highly dependent on the overall economic growth already have good investment value, especially investments in companies with stable RoE, low valuations, and high dividends. Chance. The promising directions include: brand consumption, the Internet, stable dividends, brand/supply chain overseas expansion, and leisure travel.