Shanghai Securities News｜Broad-Based Index Products See Accelerated Expansion as Multiple SSE 380 and SSE 580 ETFs and Feeder Funds Are Filed

Translated from Shanghai Securities News—www.cnstock.com

(Shanghai Securities News, www.cnstock.com) (Reporter He Xinyi) On June 23, the official website of the China Securities Regulatory Commission showed that E Fund Management Co., Ltd.(E Fund) had filed for the SSE 380 ETF, SSE 580 ETF, and feeder funds, and China Asset Management Co., Ltd.(China Asset) had submitted filings for the SSE 580 ETF and its feeder funds. The investment tools of SSE's flagship broad-based index system have been further enriched.

"The filing of the SSE 380 ETF, SSE 580 ETF, and feeder funds will help investors accurately invest in mid-cap and small-cap growth-oriented SSE-listed companies and share the development dividends of different market capitalization sectors. Meanwhile, the product expansion also marks the further improvement of SSE's flagship broad-based index product system, developing a full market value layout covering super-large-cap, large-cap, mid-cap, and small-cap stocks", said an industry professional.

Recently, SSE and China Securities Index Co., Ltd. announced a scheme to optimize the compilation of the SSE 380 Index and released the SSE 580 Index. On June 16, the optimization of the SSE 380 Index was officially implemented, and the SSE 580 Index released real-time quotes.

It is reported that the optimized SSE 380 Index targets "SSE-listed mid-cap stocks", serving as the core representative of new SSE-listed mid-cap blue-chip stocks. It selects 380 constituent stocks, and the median market value of the samples is about 18.36 billion yuan. This optimization has significantly improved the representative attribute, stability, and industry balance of the index. The index compilation scheme has introduced stricter liquidity screening and ESG considerations and optimized the sampling method. After the optimization of the index, the sample coverage has become more representative and the market value coverage has improved. The distribution of sample industries has been more optimized and balanced, the weight proportions of traditional industries and emerging sectors are basically the same, and the weight of securities on the SSE STAR Market has increased by 3.2 percentage points. Furthermore, the sample stability has been significantly enhanced, and the average natural turnover rate of samples over the last three years has decreased by 7.6 percentage points.

Additionally, the newly released SSE 580 Index emerges as a new member of SSE's flagship broad-based index system, aiming to comprehensively reflect the overall performance of SSE-listed small-cap stocks. The median market value of the index samples is about 8.25 billion yuan. Among the samples of the SSE 580 Index, about 30% of enterprises are SSE STAR Market-listed companies, 40% are specialized, sophisticated, distinctive, and innovative enterprises, and 60% come from emerging industries, with prominent small-cap innovation.

According to E Fund, the SSE 380 Index is perfectly aligned with the direction of economic transformation and upgrading, bringing together high-quality companies with high revenue growth rates and stable profitability. It is consistent with the development strategy of "new quality productive forces" and serves as a crucial tool for tapping the potential of SSE-listed mid-cap growth-oriented blue-chip stocks.

China Asset has revealed that the SSE 580 Index focuses on high-quality SSE-listed small-cap stocks, primarily covering the industrial sector, information technology, and raw materials. It boasts outstanding innovation and strong growth momentum, providing investors with an important tool to grasp the development dividends of SSE-listed innovation-driven and growth-oriented enterprises.

Currently, the total market value of SSE accounts for more than 60% of the A-share market. Compared with enterprises in the entire A-share market, SSE-listed companies are featured by "blue-chip stocks, core technology, and high dividends".

Industry professionals believe that SSE's flagship broad-based index system (50-180-380-580) serves as the core of SSE's "one body, two wings" framework consisting of its flagship broad-based indices alongside the STAR Market and dividend index brands. It fully covers SSE-listed companies and provides investors with a basic tool to participate in A-share core asset investment. In the future, with the approval and launch of ETFs, SSE's diversified flagship broad-based index allocation tools will provide convenient channels for the market entry of medium- and long-term funds to further promote the optimization of the index-based investment ecosystem.

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