The SSE Held Symposium on CSI A500 ETF to Build and Improve Index-based Investment Ecosystem

On September 12, the Shanghai Stock Exchange (SSE) held a symposium on CSI A500 ETF, where it conducted in-depth exchanges with nearly 80 heads of more than 40 institutions such as fund companies, securities traders, insurance companies, wealth management of banks, etc. Taking the issuance of CSI A500 ETF as an opportunity, the symposium aimed to study and implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China and the Central Financial Work Conference, promote all parties in the market to reach a consensus and form a joint force, jointly build and improve the index-based investment ecosystem, and boost the high-quality development of the capital market.

Recently, the China Securities Regulatory Commission (CSRC) has approved the CSI A500 Index and ETF products. The market value coverage of the CSI A500 Index reaches 56%, with balanced industry distribution covering leading companies in emerging industries. It can timely reflect the transformation of industrial structure and greatly improve the representativeness of new quality productive forces. It has integrated ESG screening, connectivity, and other elements, depicting the structural changes of the capital market from a new perspective and serving the diversified investing needs of various investors. Besides, this product is expected to become an important carrier and good tool for medium and long term capital to enter the market. Participants agreed that as China's economy has entered a stage of high-quality development, the proportion of emerging industries in the real economy and capital market is increasing. In this context, CSI A500 ETF is conducive to better serving residents' wealth management needs and facilitating the investment-side reform of the capital market.

As pointed out by the State Council's Guideline on Strengthening Supervision, Forestalling Risks and Promoting High-Quality Development of the Capital Market, we should vigorously develop equity public funds and promote the development of index-based investment. Convening this symposium is a specific task for the SSE to implement the State Council's Guideline and also a practical action to prioritize the development of technology finance, green finance, inclusive finance, pension finance, and digital finance, thus facilitating the growth of real economy and new quality productive forces. Given the global experience, broad-based index products can be called pillars in the capital market infrastructure construction with their widest characterization range and the most market influence. At present, index-based investment in China is in a new period of opportunity, and the ETF market has broad prospects for development.

Participants agreed that all parties were greatly encouraged and excited to hold this symposium at the key point of CSI A500 ETF issuance. Fund managers and securities companies expressed that they would make great effort to accomplish the initial launch and follow-up operation of the products, better serve the investors, attach importance to investors' returns, and fully stimulate market vitality. Institutional investors generally expressed their firm confidence, maintained resolution and expectation to lasting achievement, adhering to long-term commitment and staying professional, thus taking the lead as patient capital and medium and long term capital.

The relevant person in charge in the SSE said that the ETF industry as a whole is undergoing positive changes, and the concept of index-based investment has further gained popularity. The SSE would make concerted efforts with all parties in the market to build the CSI A500 ETF into a new highlight in the profile of China's ETF market. Meanwhile, the SSE would attach importance to and better serve the investors as usual. It will also respond to issues with all parties concerned in the market, integrate resources, help each other, jointly expand the incremental market and optimize the existing market, build and improve the index-based investment ecosystem, cultivate and establish rational, value, and long-term investment concepts, promote high-quality development of ETF market, and better serve the target of building China into a financial power.