The Latest Statements with Video of Cai Jianchun General Manager of the SSE, on Index-based Investment and the Further Diversification of ETF Types!

Translated from Securities Daily

On March 8, Cai Jianchun, Member of the National Committee of the Chinese People's Political Consultative Conference and General Manager of the Shanghai Stock Exchange ("SSE"), stated in an interview with Securities Daily at the economic sector station of the National Committee of the Chinese People's Political Consultative Conference that the SSE, as a market organization infrastructure, aims to do the right things in the long term. It has taken multiple measures from various dimensions, including financing, investment, trading, and services, to work with market institutions to implement the concept of "Three Investments" (rational investment, value investment, and long-term investment).

According to Cai Jianchun, since last year, the SSE has focused on three areas of work. First, it reissued the initiative for the "Three Investments" concept. In 2021, the SSE released the initiative, which was revised last year in line with the latest guiding principles. The revised initiative received a positive response from industry institutions, with over 460 participants, nearly 7 times the 60-plus institutions that joined when the initiative was first launched in 2021. Second, the SSE leveraged the exemplary role of outstanding cases. The SSE collaborated with the Asset Management Association of Shanghai to organize asset management industry institutions to release and showcase excellent practice cases, jointly creating an atmosphere for the "Three Investments" concept.

Third, the SSE formulated the Work Plan for Strengthening and Improving Institutional Investor Services, enhancing interaction and communication with industry institutions to guide long-term investment and achieve stable returns.

Regarding index-based investment, Cai Jianchun noted that index funds have very broad development prospects. In the international market, for example, in terms of ETFs, the proportion of equity ETFs to stock market value is 13% in the United States, 11% in Europe, and 8% in Japan. In China, this proportion is currently less than 4%, indicating promising prospects from this perspective.

Regarding the further diversification of ETF types, Cai Jianchun said that the next step would be to explore multi-asset index products to meet the investment needs of investors with different risk preferences.

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