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the csi a-series etf family has added a new member.

it took only one day from product submission to approval, and the first batch of csi a500 etf submitted by 10 public fund companies was approved on the spot.

the first batch of csi a500 etfs were approved

as of september 7, the first batch of companies with approved products, including harvest fund management, morgan asset management, and invesco great wall fund, will officially start selling on the 10th (tuesday). industry insiders predict that as an important broad-based etf in the market, the csi a500 index has a higher coverage of a-shares and is more representative, which may provide a new benchmark for investing in the chinese economy and a-share core assets.

it is reported that products under five fund companies, namely, harvest, invesco great wall, southern, guotai and yinhua, are planned to be listed on the shenzhen stock exchange, while products under five fund companies, namely, morgan asset management, fuwu, huatai-pinebridge, china merchants and taikang, are planned to be listed on the shanghai stock exchange.

according to the previous introduction of csi index company, in order to further enrich market representation tools and investment targets, the csi a500 index will be released on september 23. the index adopts an industry balanced sampling method, selecting 500 securities with large market capitalization from various industries as index samples. the index sample takes into account both market capitalization representativeness and industry balance, reflecting the overall performance of representative listed securities in various industries. in addition, while having good representation, the csi a500 index also includes more leaders in emerging fields. according to the data provided by csi index company, the total weight of the industrial, information technology, communication services, and medical and health industries is about 50%, which is higher than the comparable broad-based index. the latest sample covers all 35 csi secondary industries and 92 tertiary industries. as of the end of july 2024, the total market value of the index sample is about 40 trillion yuan, accounting for more than half of the total market value of a shares. it is a new generation of broad-based index with a wider coverage.

csi a500 etf is expected to bring fresh water to the market

judging from historical performance, the performance of the csi a500 index is remarkable. data shows that as of june 2024, 76.6% of the samples of the csi a500 index have a return on equity or revenue growth rate that ranks in the top 50% of the industry. at the same time, the excellent fundamentals of the constituent stocks have also driven the long-term performance of the index. as of august 29, 2024, the cumulative increase of the csi a500 index since the base date (december 31, 2004) has reached 279.58%, while the interval return performance of the sse 50, csi 300, and csi 800 indices during the same period was 174.76%, 226.47%, and 248.08%, respectively. in comparison, the long-term running ability of the csi a500 index may be better.

with the support of multiple rounds of policies to stabilize growth, the recent warming of some economic data has continued to inject confidence into the market. regarding the future market trend, tan hongxiang, deputy director of the index investment department of huatai-pinebridge fund, analyzed that on the one hand, the improvement of global liquidity represented by the fed's interest rate cut is expected to drive up risk appetite and bring incremental funds to the relatively under-allocated core assets in the past two years; on the other hand, the new quality productivity main line formed by the implementation of supply-side policies may become a new "reservoir" for carrying liquidity, giving growth assets greater marginal elasticity.

based on the above analysis, tan hongxiang believes that allocating large-cap blue chips and leading sectors in sub-sectors to grasp the valuation repair opportunities brought about by the overall improvement in market expectations and the recovery of risk appetite from a low level may be the better choice at present.

invesco great wall fund believes that the launch of the csi a500 index is timely. the launch of the csi a500 index and the listing of related etf products will bring new vitality to the a-share market and are expected to bring investors products with more balanced market allocation.

specifically, first of all, a-shares are currently at the bottom of history in terms of valuation, risk premium and trading activity. compared with the stock indexes of major overseas markets, a-shares have a very prominent valuation advantage. with the recent increase in global stock market volatility and the stability of the rmb exchange rate, the "multiplier" value of a-shares has begun to attract more funds.

secondly, although china is currently experiencing the pain of economic transformation, some indicators show that the chinese economy has reached the bottom and has structural resilience. industrial enterprise inventories have bottomed out, cpi and ppi have recovered moderately, and some globally competitive listed companies have started the corporate profit recovery cycle.

in addition, considering that the fed is expected to start a rate cut cycle in the second half of the year, global risk appetite is expected to increase, and the margin of overseas liquidity is expected to improve. since the fiscal policy in the first half of the year was relatively prudent, a large policy space has been accumulated for fiscal efforts in the second half of the year. invesco great wall fund believes that investors should remain optimistic about the a-share market at present.