Shanghai Securities News｜SSE Strives to Create a New Chapter in High-Quality Index-Based Investment: SSE ETF Scale Surpasses RMB 2 Trillion

Translated from Shanghai Securities News—www.cnstock.com

(Shanghai Securities News, www.cnstock.com) (Reporter He Xinyi) On April 16, Guotai Haitong Securities Co., Ltd. held the Seminar on Promoting Index-Based High-Quality Development of Capital Market. A relevant person in charge of the Shanghai Stock Exchange (SSE) said at the seminar that SSE is focusing on the main line of "high-quality development of index-based investment and promoting the entry of medium- and long-term capital into the market", striving to work with all parties to build an ecological environment for "long-term investment of long-term capital" and cultivate and strengthen patient capital.

First, SSE adheres to a systematic approach to promote the ecological development of indices. This year, SSE has updated and released the Three-Year Action Plan for Index Business, focusing on the development of the "five major areas" in finance and striving to build a "Chinese brand" index system. It is increasing the supply of high-quality broad-based, low-risk, and stable-return indices, enabling indices and products suitable for medium- and long-term investment to reach ordinary people, and enhancing investors' sense of gain. It is enriching the global index layout, enhancing the international influence and competitiveness of the index system, performing well in "going out" and "bringing in", optimizing the index ecology, and creating conditions for medium- and long-term funds to enter the market. According to introduction, the current scale of SSE broad-based ETFs is nearly RMB 1.6 trillion, that of bond ETFs exceeds RMB 200 billion, and that of dividend ETFs is about RMB 100 billion. There are four SSE ETFs with a scale of more than RMB 100 billion each, accounting for 80% of the total in the two markets; there are 52 SSE ETFs with a scale of over RMB 10 billion each, accounting for 71% of the total in the two markets. At present, the number of ETF products has exceeded one thousand, with a total scale of RMB 3.9 trillion. Among them, the scale of stock ETFs is RMB 2.9 trillion, and that of SSE stock ETFs exceeds RMB 2 trillion.

Second, SSE continues to enrich the ETF product spectrum and highlight support for the development of new quality productive forces. It is comprehensively optimizing and strengthening the core broad-based stock ETFs, improving thematic and strategy index ETFs, enriching the STAR Market Index and ETF categories, and continuing to guide funds towards "core technology". It is enhancing the innovation of medium and low volatility products, studying and launching multi-asset ETFs, cross-market bond ETFs with physical subscription and redemption models, REITs index funds, and other varieties, and enriching the dividend index systems and products. It is also promoting active ETF research to better meet the asset allocation needs of various investors.

Third, SSE continues to optimize the ETF supporting mechanism and cultivate an environment for "long-term investment of long-term capital". Through research, it tries to promote the launch of a STAR Market ETF fund trading platform, advance the normalization of collective subscription business and attract more medium- and long-term funds to enter the market through ETFs. It continues to promote the inclusion of ETFs in the after-hours fixed-price trading mechanism, study and promote the optimization of ETF block trading mechanisms, and enrich medium- and long-term capital trading methods. It endeavors to expand and optimize the cross-border connectivity mechanism, strengthen the "going global" of indexes and products, and attract incremental funds from abroad. For dividends that investors are particularly concerned about, SSE actively guides ETFs to establish a stable dividend mechanism. In 2024, the number and amount of products listed on SSE accounted for 75% and 85% respectively in domestic ETF dividends. Since 2025, fund dividends have exceeded RMB 70 billion, among which the SSE broad-based ETF and dividend ETF dividends rank high.

Fourth, SSE focuses on building a good ecology of the ETF markets and continues to strengthen long-term investment forces. It promotes the inclusion of ETFs in the scope of fund investment advisory allocation and implements inclusive financial requirements. It tries to accelerate the cultivation and formation of the "three investments" concept, and establish an industry culture that facilitates benign, orderly and healthy development. It continues to strengthen ETF publicity and promotion and market services, and cooperate with market institutions, mainstream media, colleges and universities It strictly adheres to the bottom line of market risks, strengthens daily continuous supervision and management of ETF products, and consolidates the foundation for stable market operation.

Fifth, SSE focuses on attracting medium- and long-term capital to promote the steady increase in the scale and proportion of medium- and long-term fund investment. It actively promotes the entry of medium- and long-term funds into the market, enriches ETF products that match their investment needs, evaluates and improves the ETF market maker mechanism, enhances ETF liquidity, and stimulates market vitality. It strives to enrich derivatives such as ETF options to serve the risk management needs of medium- and long-term capital, optimize and improve relevant trading mechanisms, and address the pain points and bottlenecks of medium- and long-term capital investing in the ETF markets.

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