Group 1 - A-shares indices opened lower but rose throughout the morning, with the Shanghai Composite Index surpassing 4000 points, marking a nearly 10-year high and a year-to-date increase of nearly 20% [1] - The CSI A500 Index showed a rebound, up 0.3% as of 11:25, with significant trading activity in the A500 ETF, which saw over 2 billion yuan in daily trading volume and a net subscription of 15 million shares [1] - The Chairman of the China Securities Regulatory Commission emphasized the importance of stability and balance in asset allocation during the risk repricing and asset rebalancing process, highlighting the ongoing revaluation of Chinese assets like A-shares and Hong Kong stocks [1] Group 2 - The A500 ETF managed by E Fund (159361) has demonstrated strong capital inflow recently, with a management fee rate of only 0.15% per year, making it a cost-effective option for investors to allocate to core A-share assets [2]

Core Insights - The Shanghai 180 Index is a benchmark broad-based index in China's capital market, reflecting the price performance of core listed companies in the Shanghai market [2][3] - The index has undergone significant optimization to enhance its representation, investment quality, and stability, aligning with the evolving economic structure and investment demands [2][3][6] Index Characteristics - The Shanghai 180 Index includes 180 large-cap, liquid stocks from the Shanghai A-share market, representing approximately 61% of the market's total market capitalization [2][3] - The index's optimization has improved its coverage of revenue, dividends, and net profits to approximately 63%, 76%, and 82%, respectively, compared to previous levels [3] Performance Metrics - The annualized return of the Shanghai 180 Index is 7%, outperforming other mainstream broad-based indices, with a cumulative return of 266% over the past twenty years [4] - The index's dividend yield is approximately 3.3% in 2024, consistently higher than that of other similar indices, supported by companies with sustainable profitability [5] Industry Representation - The optimized index features a more balanced industry distribution, including 16 stocks from the Sci-Tech Innovation Board, which collectively account for 9% of the index's weight [3][6] - The index's industry balance rules ensure that its sample weight distribution aligns closely with the overall industry characteristics of the Shanghai market [6] Long-term Investment Value - Nearly 60% of the index's constituent stocks are state-owned enterprises (SOEs), which are expected to benefit from policies promoting value re-evaluation and improved fundamentals [7] - The index's constituent stocks have maintained a high dividend payout ratio of around 90%, with total dividends exceeding 1 trillion yuan in the past year [7] ESG Considerations - The optimization process has excluded companies rated C or below in ESG evaluations, making the index more appealing to foreign investors [8] Product Ecosystem - The Shanghai 180 Index serves as a comprehensive tool for investors to access high-quality core assets and growth-oriented companies in the Chinese economy [9] - Following the index's optimization, multiple fund managers have actively launched related index products, enhancing the investment ecosystem [9]