SSE: Number of All-series Indexes Approach 8,000 and the Market Value of Tracking Products Reach 3.5 Trillion Yuan

Du Kang, Xinhua Finance

Currently, the total number of Shanghai Stock Exchange (SSE)'s indexes across various series is nearly 8,000, and the market value of tracking products has reached 3.5 trillion yuan, marking an annual increase of about 80% in 2024 and attracting more than 1 trillion yuan into the A-share market through ETFs. Recently, to elevate index investing to a new level, the SSE has completed a mid-term update of its Action Plan.

Shanghai, March 24 (Xinhua Finance) (Reporter Du Kang) — As important resources in the financial market, indexes have an influence over the allocation of market resources and affect the "money bags", decision-making and confidence of the general public. They play a significant role in stabilizing investment and expectations. In 2024, the SSE formulated the Three-Year Action Plan for Index Business (2024-2026) (hereinafter referred to as the Action Plan), marking a milestone in the development of its index business. As of now, the total number of SSE's indexes across various series is nearly 8,000, and the market value of tracking products has reached 3.5 trillion yuan, marking an annual increase of about 80% in 2024 and attracting more than 1 trillion yuan into the A-share market through ETFs.

To take the development of index investing to a new level, the SSE recently completed a mid-term update of the Action Plan.

The reporter learned that the update mainly covers three aspects. First, it stresses the importance to stand firm on the people's side, build a Chinese local brand for index system, and make sure the "five key areas" of finance are well-developed. The SSE will increase the supply of high-quality broad-based indexes and indexes with low risks and stable returns, introduce indexes and products suitable for medium-to-long-term investment to ordinary people, and enhance investors' sense of gain. Additionally, it will enrich the global index offering, enhance the international influence and competitiveness of the index system, and perform well in both index "going global" and "going domestic". Furthermore, with a focus on technology finance, green finance, inclusive finance, pension finance, and digital finance, the SSE will accelerate efforts to leverage indexes for supporting the development of new quality productive forces and deepening reforms on the investment side.

Second, the index ecosystem should be further improved to create conditions for medium-to-long-term funds to enter the market and cultivate the environment of "long-term funds for long-term investment". The SSE will increase the offering of indexes and products suitable for medium-to-long-term capital investment such as social security funds and insurance funds, and strengthen index services tailored to the needs of institutional investors. In addition, it will continue to work on publicity, promotion, and investor education, raise individual investors' understanding of index investing, and expand the number of index investors for long-term wealth management. Meanwhile, the SSE will research on allowing the transfer of ETF units on the SSE fund trading platform.

Third, technology should be applied to enhance the quality and efficiency of index management and improve the ability of indexes to serve national strategies. The SSE will explore the integration of artificial intelligence to make the process of index compilation more digital and smart, so as to improve the quality and efficiency of indexes in serving national key strategies and market demand in key areas. In this sense, there is a need to coordinate risk prevention and high-quality development, improve index sample and weight adjustment as well as safe operation and risk management capabilities, enhance the internal stability of index investing, and ensure the sound and steady development of the index industry.

According to the SSE, it will implement the Action Plan with greater efforts and more practical measures and work with relevant parties to promote the high-quality development of index investing and establish a market ecosystem where investment and financing are more coordinated.

The above information is provided for reference purposes only and does not constitute investment advice.