news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

recently, the first batch of csi a500 etf has become one of the focuses of recent market attention. among them, csi a500 etf southern (code: 159352) was officially launched on september 10. industry insiders pointed out that this is expected to provide investors with a new investment tool for the layout of high-quality core assets of a-shares, promote the high-quality development of index investment, and also help attract more incremental funds to enter the market.

bringing together core companies from various industries

public data shows that on august 27, china securities index co., ltd. announced the release arrangement of the csi a500 index, which will be officially released on september 23. this index adopts the industry balanced sampling method, selects 500 securities with large market capitalization from various industries as index samples, and keeps the market capitalization distribution of the index sample industry and the sample space as consistent as possible, reflecting the overall performance of the most representative listed securities in various industries.

the csi a500 index follows the compilation method of the csi a series and selects the top 500 companies in the entire market. the sample space of the csi a500 index is the csi all index, and the industry weights are benchmarked with the csi all index. it is a microcosm of the entire a market and brings together super-core assets of a shares.

a500, like the a50 which was popular at the beginning of this year, belongs to the csi index a series. one of the biggest features of the a series index is balance. it gives priority to selecting listed companies with the largest free float market value in the third-level industries as index samples, encompassing core enterprises in various industries and covering 92 csi third-level industries, exceeding the csi 300 and csi 800, and is more representative of the core assets of a-shares.

new quality productivity genes are prominent

the value of the csi a500 index lies not only in its aggregation of core assets, but also in the fact that the compilation of the csi a500 index is anchored on the growth trend and focuses on new quality productivity.

among the index constituents, the weights of industries such as industry, information technology, and communication services, which represent new productivity, have further increased. the weights of advanced manufacturing and information technology industries have increased compared to the csi 300 index, while the weights of finance and major consumer industries have significantly decreased. as of the end of july, the combined weights of industry, information technology, communication services, and medicine and health care industries were approximately 50%. this can help investors to lay out high-tech, high-efficiency, and high-quality advanced productivity with one click.

as the chinese market "a" series index launched after the new "national nine articles", the csi a500 index is an upgraded version of the previous broad-based index, and is a further improvement of high-quality productivity under the new economic environment. as an index that reflects the performance of core listed securities in the entire market, the dynamic changes in industry structure reflect the trend of macroeconomic structural adjustment and industrial transformation and upgrading.

data source: wind, csi index, calculated and compiled by southern fund, as of august 27, 2024.

in addition, the index compilation combines the screening conditions such as interconnection and esg to facilitate the allocation of a-share assets by domestic and foreign medium- and long-term funds. in the long run, the industry market value structure of listed companies tends to be consistent with the long-term trend of changes in the national industrial structure. all this makes the csi a500 index have obvious new quality productivity characteristics. the industry distribution of the index samples reflects the characteristics of new quality productivity. the weight of the advanced manufacturing and information technology industries has increased compared with the csi 300 index, and the weight of the financial and major consumer industries has decreased significantly, reflecting the characteristics of new quality productivity.

bottom etf investment is more efficient

industry insiders believe that after two years of adjustment, the valuation of a-shares is at a relatively low level in history. currently, the pe (ttm) of the csi all-share index is 15.7, which is at the 9.8% percentile since 2020. rationally speaking, the current downside risk of a-shares is relatively small, but there is a large room for valuation repair, and the mid- and long-term cost-effectiveness is prominent.

data source: wind, as of july 31, 2024. the past performance of the index does not represent the future, and the index performance does not indicate the performance of the product. funds are risky and investment should be cautious.

with the implementation of stimulus policies, the market may stabilize as the economy recovers. with the continued improvement of fundamentals and precise policy efforts, a-share core assets may be one of the more attractive investment directions, and etfs with lower fees and more convenient investment transactions may be a better choice.

in terms of index operation, as one of the first standardized fund management companies in china, southern fund has rich experience in index fund management. the core fund manager team has an average working experience of 10 years. its index funds have formed a full range of product layout covering full market capitalization, industry themes, cross-border, factors, enhanced, esg, commodities and other tool-type products.

at the current point in time, after the support of multiple rounds of steady growth policies in the early stage, some economic data have warmed up recently. at a time when the capital market valuation is low, it may be a better choice to use the csi a500 etf, which includes core a-share assets, to allocate large-cap blue chips and core sectors of subdivided industries, and seize the valuation repair opportunities brought about by the gradual improvement of market expectations and the rebound of risk appetite from a low level. (cis)