As of November 11, the total scale of the on-market CSI A500 ETF has surpassed 100 billion yuan, marking an unprecedented milestone reached only 21 trading days post-launchThis rapid ascent has established a new record for achieving a market cap over 100 billion yuan faster than any previous fund in history.

During a live session held by China Securities Journal titled "ETF Point Gold Conference," Yang Kun, the prospective fund manager of Wanjiasheng Zhongzheng A500 ETF (159356), discussed the recent surge in new offerings within the emergent A500 index fundsHe articulated that this index embodies a dual concept of “core assets” alongside “new quality productivity,” offering comprehensive industry coverage that accurately depicts the transformations in economic development structure and the upgrading of industriesGiven the favorable long-term outlook for the A-share market, broad-based indices represented by CSI A500 appear to present a fruitful opportunity for strategic positioning.

Moreover, Yang shared invaluable insights on several trending topics within the market

Advertisements

He noted that the consistent implementation of policy measures has already begun to stabilize the economy, leading to increased investor interest in high-performance stocks with solid fundamentals.

Gradual Market Stabilization

Optimism in High-Quality Stocks

Since the implementation of a new policy package on September 24, market sentiment has noticeably heated upYang observed that a plethora of favorable policies has cultivated strong positive expectations within the market"Although the market experienced some adjustments after October 8, I attribute this to profit-taking behaviors amongst investorsWe must refrain from viewing these fluctuations through a short-term lens and instead understand the underlying logic of the series of policies from a long-term perspective," Yang emphasized

Advertisements

He elaborated that these policies reflect a high level of attention from authorities towards the capital market, indicating that further favorable measures may be on the horizon, which could strengthen the overall capital market.

Yang also pointed out that the economy is steadily moving towards stabilization"Currently, the economic fundamentals are gradually aligning, and financially sound stocks are expected to attract more investment," Yang sharedHe touched upon shifting international dynamics, suggesting that the resilience of the Chinese economy has significantly improved in areas such as policy implementation, market liquidity, and valuation margins.

Delving into specific sectors to monitor, Yang highlighted several areas of potential growthFirstly, he noted that companies associated with construction, particularly state-owned enterprises benefiting from the debt-relief policies, warrant attention

Advertisements

Secondly, as the trend of technological transformation and upgrades gains momentum, sectors tied to new quality productivity such as semiconductors and low-altitude economies are also expected to thrive.

Dual Concepts Supporting Growth

CSI A500 Index: A Prime Opportunity

A hot topic of recent market discussion has been the mass issuance of CSI A500 ETF funds, which has captivated widespread interest with the introduction of dozens of these fundsBy November 11, the scale of the on-market CSI A500 ETF has already exceeded 100 billion yuan, with Wanjiasheng’s new entry (159356) currently in active issuanceWhat uniquely attracts such a substantial number of investors to the CSI A500 index?

According to Yang, the CSI A500 index seamlessly merges the concepts of "core assets" and "new quality productivity," encompassing a comprehensive range of industries that reflect current shifts in economic structure and industrial upgrades

• Oil Prices Plunge Across the Board
• Unpredictable Trends in USD/JPY Exchange Rate
• Supporting Sustainable Growth in Venture Capital
• BMW Sees 61% Decline!
• Will Fossil Fuels and Nuclear Power the AI Boom?

Its robust long-term performance delivers high investment value, effectively allowing investors to engage across various sectors of China’s economic landscape, thereby sharing in the benefits of high-quality economic growthWith a turnaround in investor confidence and the ongoing roll-out of supportive policies, there are strong indications that the economic fundamentals will stabilize and reboundCorrespondingly, the A-share market is expected to show long-term improvements, presenting an excellent opportunity for strategic positioning in broad-based indices, specifically the CSI A500.

Yang further discussed the advancements made in the index methodology, highlighting that compared to the traditionally well-known CSI 300 Index, the CSI A500 index integrates enhanced selection criteria"For instance, instead of merely ranking companies by market capitalization during the sampling phase, the CSI A500 index excludes companies rated as C or below in the ESG ranking, ensuring a focus on higher-quality assets

Additionally, the stocks selected under this index typically belong within the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, known for their better liquidity and size, making them favorable for overseas fund allocations," Yang elaborated.

High Investment Value

A New Choice for Asset Allocation Stabilization

Yang believes that the CSI A500 index holds significant promise for long-term investors, potentially serving as a stabilization pillar in broader asset allocation strategies"Firstly, the CSI A500 index encompasses large-cap core assets from the A-share market, with a relatively balanced industry distributionSecondly, this index highlights several leading companies within niche sectors, aligning seamlessly with the direction of future national industrial upgrading," he indicated.

In terms of valuation, the CSI A500 index demonstrates a favorable safety margin

"Its price-to-book ratio hovers around 1.5 times, placing it in the 15% historical ranking over the past decade," Yang stated"In simpler terms, this index is cheaper than more than 85% of the time over the past decade; even amid a market rebound in the past month, the CSI A500 still presents a highly attractive investment profile."

As the participant base in the CSI A500 index expands, the challenge of distinguishing individual fund companies amid a sea of competition continues to concern many public fund institutionsYang commented that first, regarding talent development, Wanjiasheng's index team, which falls under the Quantitative Investment Department, boasts an average research experience exceeding ten yearsLooking ahead, this team will focus on enhancing its talent pool and increasing training effortsSecondly, during product operations, the team is committed to strengthening its R&D capabilities, consistently delivering unique products that offer both high trading and allocation value