Core Viewpoint - The launch of the Southern Eastern Huatai Baichuan CSI A500 ETF on the Hong Kong Stock Exchange marks a significant step in facilitating international investment in Chinese assets, providing a convenient channel for global investors to access a diversified portfolio of quality A-share companies [1][2]. Group 1: Product Overview - The Southern Eastern Huatai Baichuan CSI A500 ETF is the first fund tracking the CSI A500 Index to be listed on the Hong Kong Stock Exchange, primarily investing in the leading domestic A500 ETF (563360) [1]. - The product design allows at least 90% of its net assets to be directly invested in the A500 ETF, enabling international investors to indirectly invest in a basket of quality listed companies in China [1]. - As of January 23, the A500 ETF (563360) has a scale of 46.684 billion yuan, making it the largest in its category, with an average daily trading volume of 13.334 billion yuan this year [2]. Group 2: Market Context - The trend of "buying Chinese funds" has gained momentum globally, with domestic fund companies promoting representative A-share index products internationally [2]. - The CSI A500 Index, which employs an "industry-neutral" methodology, covers 35 secondary and 89 tertiary industries in the A-share market, with over 70% weight in new economy-related sectors, aligning with China's high-quality economic development and industrial upgrading [2]. - The current strategic window for overseas funds to increase allocation to Chinese assets is supported by ongoing domestic growth policies and a stabilizing economic environment [2]. Group 3: Long-term Value - The long-term value of the CSI A500 Index is rooted in China's transition from total growth to high-quality development, reflecting the dynamic changes in new and old economic drivers, technological innovations, and the deepening of the "national unified market" [3].

Group 1 - The first China Securities A500 Index ETF, the Southern Eastern Hong Kong Taiping Securities A500 ETF (03101), will be listed on the Hong Kong Stock Exchange on January 28, with a listing price of approximately HKD 7.9 per share and a minimum trading unit of 100 shares, along with an annual management fee of 0.99% [1] - The listing of the Southern Eastern Hong Kong Taiping Securities A500 ETF marks a significant step in the ongoing opening up of China's financial industry and represents an important advancement in the internationalization of Chinese assets [1] - The fund is a feeder fund that aims to invest at least 90% of its net asset value in the Huatai-PB A500 Exchange-Traded Fund through QFI qualifications and/or the Shanghai-Hong Kong Stock Connect, with the main fund having an asset management scale of approximately RMB 49.5 billion as of January 8, 2026, ranking first globally among similar products [1] Group 2 - The China Securities A500 Index selects 500 A-share securities with larger market capitalizations and better liquidity from various industries to reflect the overall performance of the most representative listed companies [2] - The index has a high allocation ratio in sectors such as industrials, information technology, materials, finance, and communication services, indicating potential for relative excess returns, with a projected return rate of 22.43% by 2025 [2] - The CEO of Huatai Securities, Zhou Yi, stated that the listing of the Southern Eastern Hong Kong Taiping Securities A500 ETF in Hong Kong is a significant step in Southern Eastern's comprehensive ETF strategy, providing Hong Kong investors with a new channel to invest in mainstream Chinese industry companies and enriching the Hong Kong ETF market [2]