2025-11-11 07:18Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - In a unilateral rising market, the momentum factor can amplify returns by concentrating on strong-performing stocks, resulting in significant excess returns. When combined with the growth factor, it can capture trends while adding a fundamental safety net to the investment portfolio, making it suitable for medium-risk preference investors. The "growth + momentum" dual-factor investment logic is systematically implemented in the ChiNext Momentum Growth Index and its linked product, the Huaxia ChiNext Growth ETF [1][11]. Summary According to the Directory Product Fund - Huaxia ChiNext Growth ETF (159967) - Investment Attributes and Returns: The Huaxia ChiNext Growth ETF closely tracks the ChiNext Momentum Growth Index, serving as a passive investment tool for high-growth and strong-momentum portfolios on the ChiNext board. Since its establishment in June 2019, it has achieved a cumulative return of 113.97%, significantly outperforming broad-based indices such as the CSI 300. In the rising market since May 2025, it has shown outstanding performance with a six-month return of 46.51%, demonstrating its offensive nature in a bull market. However, it has high volatility, with a three-year return of 1.10% significantly trailing the CSI 300's 22.70% [2][11][14]. - Fund Manager and Fund Company: The fund is managed by Rong Ying, who manages 21 funds with a total scale of approximately 138.292 billion yuan. As of October 22, 2025, the Huaxia ChiNext Growth ETF has a scale of 30.39 billion yuan. Huaxia Fund, the fund manager, has a total public fund management scale of 2041.571 billion yuan as of October 22, 2025, with 114 ETFs worth 896.351 billion yuan and 13 money market funds worth 774.607 billion yuan, consolidating its leading position in public offering index investment [15][19]. Tracking Index - ChiNext Momentum Growth Index (399296.SZ) - Index Composition and Calculation: The index is compiled by Guozheng Index Company, selecting 50 listed company securities with good growth ability and obvious momentum effects from the ChiNext board. It uses a Paasche weighting method with a single stock weight cap of 15% and adjusts samples and weights quarterly. The sample selection involves screening stocks based on liquidity and then using growth and momentum factors to calculate scores and determine the final 50 stocks [20][21][27]. - Performance and Returns: Since its release in 2019, the index has achieved a cumulative return of 157.46%, significantly higher than mainstream broad-based indices. In 2020, it had a return of 97.14%, showing high growth elasticity. In the period from May 1 to October 22, 2025, it had a cumulative return of 40.24%, also outperforming major broad-based indices [4][31][35]. - Weighted Stocks and Industry Distribution: The top ten component stocks account for 76.63% of the total weight, with high concentration in the technology growth sector. The top four industries (communications, power equipment, electronics, and non-bank finance) account for nearly 80% of the total weight, highlighting the index's focus on the technology growth sector [3][37][52]. - Valuation and Earnings: As of October 22, 2025, the index's PE TTM is 40.83 times, slightly lower than the historical median of 44.73 times, indicating a reasonable valuation. From 2019 to 2024, the index's component stocks showed strong growth in revenue and net profit, and it is expected to maintain double-digit growth from 2025 to 2026 [61][64]. - Sources of High Growth and Excess Returns: The index's high growth elasticity and excess returns stem from its precise sample screening, factor tilt weighting, high-growth and high-elasticity asset characteristics, and regular dynamic adjustments [71]. Sample Space - ChiNext Composite Index - Market Value and Industry Structure: The index shows a pattern where small-cap stocks dominate in number and large-cap stocks dominate in weight. The industry structure has been evolving towards power equipment, electronics, and communications, with the power equipment industry's weight increasing from 13.89% in 2020 to 23.46% in 2025, and the communications industry's weight rising from 2.90% to 9.69% [76][78]. - Growth and Profitability: The index has shown strong growth momentum in revenue, with its growth rate consistently higher than that of major market indices from 2020 to 2024. Its average net profit growth rate from 2020 to 2024 was 11.73%, significantly higher than that of mainstream broad-based indices. The average ROE in the past five years was 6.86%, indicating relatively good profitability [79][81][83]. - Industry Focus and New Productivity Layout: The index's industry structure focuses on technology growth, with a low financial sector weight and high weights in emerging technology fields such as communications and computers, reflecting the trend of new productivity development and industrial upgrading [88].