Core Viewpoint - The approval of the first batch of the Shanghai Stock Exchange 580 ETF and its linked funds, along with the E Fund Shanghai Stock Exchange 380 ETF, provides new investment tools for capturing small-cap growth opportunities and focusing on mid-cap new blue chips [1][2]. Group 1: New Index Products - The newly approved products track the Shanghai Stock Exchange 580 Index and the Shanghai Stock Exchange 380 Index, which, along with the more familiar Shanghai Stock Exchange 50 Index and 180 Index, form a comprehensive index series for investors [1]. - The Shanghai Stock Exchange 580 Index consists of 580 small-cap stocks, reflecting the overall performance of small-cap stocks in the Shanghai market, covering approximately 10% of the total market capitalization of A-shares [1][2]. - The Shanghai Stock Exchange 580 Index has shown strong growth, with a cumulative increase of 56.63% since its inception and an annualized return of 7.39% as of June 30 [1]. Group 2: Characteristics of the Indices - Approximately 30% of the sample weight in the Shanghai Stock Exchange 580 Index belongs to companies listed on the Sci-Tech Innovation Board, and around 40% are specialized and innovative enterprises, indicating a focus on new economic drivers [2]. - The Shanghai Stock Exchange 380 Index, established in 2010, reflects the overall performance of mid-cap stocks and has undergone optimization to enhance its representativeness, stability, and industry balance [2][3]. - The optimized Shanghai Stock Exchange 380 Index includes 380 stocks with a median market capitalization of approximately 1.836 billion, focusing on both traditional and emerging industries [2][3]. Group 3: Investment Value and Market Coverage - The optimized Shanghai Stock Exchange 380 Index is aligned with the direction of economic transformation and upgrade, featuring high-revenue growth and stable profitability companies, with nearly 30% being specialized and innovative enterprises [3]. - Currently, there are only two ETFs tracking the Shanghai Stock Exchange 380 Index, with the newly approved E Fund product being the second [3]. - The Shanghai flagship broad-based index system has been upgraded to include the Shanghai Stock Exchange 50 Index (large-cap), 180 Index (big-cap), 380 Index (mid-cap), and 580 Index (small-cap), covering 1,140 sample securities and approximately 50% of the market [3].

Group 1 - The launch of new ETFs, including the Shanghai Stock Exchange 380 ETF and 580 ETF, enhances the investment tools available in the flagship broad-based index system [1][2] - The total scale of broad-based ETFs has exceeded 2 trillion yuan, indicating their importance as a tool for market entry [1][3] - The Shanghai Stock Exchange 380 and 580 indices focus on mid-cap and small-cap stocks, respectively, with an emphasis on quality and ESG criteria [1][2] Group 2 - The Shanghai 580 index targets high-quality small-cap stocks, primarily in the industrial, information technology, and materials sectors, providing investors with opportunities in innovative growth companies [2] - The optimized Shanghai 380 index is seen as a valuable investment tool, aligning with economic transformation and featuring a significant proportion of "specialized, sophisticated, and new" enterprises [2][3] - The increasing inflow of funds into broad-based ETFs is driven by long-term investors such as pension funds and insurance companies, indicating a growing trend towards index-based investment [3][4] Group 3 - The rapid expansion of ETFs has led to a change in the naming convention for many products to enhance recognition, following a standardized format [4]

Core Viewpoint - The article discusses the recent applications by Huaxia and E Fund for the Shanghai Stock Exchange 580 ETF and 380 ETF products, highlighting new investment opportunities in the expanding ETF market in China [2][3]. Group 1: ETF Market Developments - On June 23, Huaxia and E Fund submitted applications for the Shanghai Stock Exchange 580 ETF, 380 ETF, and their respective ETF linked funds, providing investors with new tools to capture small-cap growth opportunities and focus on mid-cap new blue chips [3][6]. - The Shanghai 580 Index, which the 580 ETF tracks, aims to reflect the overall performance of small-cap stocks in the Shanghai market, positioning itself alongside other indices like the Shanghai 50, 180, and 380 [7]. Group 2: Characteristics of the Shanghai 580 Index - The Shanghai 580 Index is designed to represent small-cap stocks, with approximately 30% to 60% of its components belonging to sectors such as the Science and Technology Innovation Board, specialized and innovative enterprises, private economy, and emerging industries [7]. - The index includes 580 securities selected based on liquidity and ESG criteria, covering about 10% of the total market capitalization of A-shares in the Shanghai market, with a median market capitalization of approximately 8.5 billion and an average of about 9.4 billion [7]. Group 3: Performance of the Shanghai 580 Index - As of June 20, the Shanghai 580 Index has increased by 48.1% since its base date (December 28, 2018), with an annualized return of 6.46%, indicating strong growth potential for small-cap innovative stocks in the Shanghai market [8]. Group 4: Shanghai 380 Index Overview - E Fund also reported the Shanghai 380 ETF and its linked funds, with the optimized Shanghai 380 Index focusing on mid-cap new blue chips, selecting 380 constituent stocks with a median market capitalization of approximately 1.836 billion [10]. - The optimized Shanghai 380 Index is characterized by its stability, industry balance, and focus on emerging industries, making it a valuable investment tool for identifying mid-cap growth potential [10]. Group 5: Comprehensive Index System - The introduction of the Shanghai 580 Index and the optimization of the Shanghai 380 Index represent a significant upgrade to the flagship broad-based index system, providing a clear hierarchy of indices from large-cap to small-cap, thus filling the gap in representation for mid and small-cap companies [10].

Domestic Economic Data - The National Bureau of Statistics of China will release May economic operation data, including industrial production, energy production, fixed asset investment, real estate development and sales, and retail sales [3][4] - The Shanghai and Shenzhen stock markets will see nearly 40 billion yuan worth of restricted shares unlocked this week, with a total of 28.28 billion shares being released [5][6] Interest Rate Decisions - The People's Bank of China will announce the one-year and five-year Loan Prime Rates (LPR) for June [4][8] - Multiple central banks, including those of Japan, Canada, and the UK, will announce their latest interest rate decisions this week [4][5] Oil Price Adjustments - The next round of oil price adjustments in China will officially begin on June 17, with expectations of a price increase due to rising international crude oil prices [8] Upcoming Events - The 2025 Lujiazui Forum and the 2025 Data Intelligence Conference will be held this week, focusing on global economic changes and financial cooperation [9][10]

Core Viewpoint - The Shanghai Stock Exchange (SSE) has recently made changes to the compilation of its indices, introducing the new SSE 580 Index and modifying the existing SSE 380 Index, reflecting new regulatory approaches to market development [1][4]. Group 1: Introduction of New Indices - The SSE 580 Index has been newly created, while the compilation method of the SSE 380 Index has been optimized, attracting market attention [1]. - The SSE has a history of developing indices, starting with the SSE 30 Index, aimed at providing a stable investment portfolio of representative blue-chip stocks [1][2]. Group 2: Historical Context and Development - The SSE 50 Index was introduced in the 21st century, focusing on quality blue-chip stocks and significantly impacting market trends [2]. - Subsequent indices like the SSE 180 and SSE 380 were developed, contributing to a complete framework for ETF products in the A-share market [2]. Group 3: Focus on Small and Medium-sized Enterprises - Historically, index compilations favored blue-chip stocks, neglecting small and medium-sized enterprises (SMEs), which constitute a significant part of the economy [3]. - The emergence of the ChiNext and Sci-Tech Innovation Board has increased the number of growth-oriented SMEs, which need recognition in the capital market [3]. Group 4: Enhancements to Index Coverage - The introduction of the SSE 580 Index addresses the lack of small-cap stock indices, enhancing the overall coverage of indices and facilitating capital flow into promising SMEs [4]. - The modification of the SSE 380 Index aims to better represent mid-cap stock performance, promoting a balanced and orderly market development [4].

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - Last week (May 26 - May 30, 2025), the A - share market first rose on high volume due to the easing of Sino - US trade negotiations and then entered a volatile adjustment. The sector rotation speed has accelerated recently, and the volatile market pattern remains unchanged [11]. - The innovation drug sector continued to rise last week, driven by multiple favorable events. However, the market heat may have reached a phased high, and the phased market of innovation drugs may end once the strong logical support weakens [12]. - The "new consumption" market has spread from the prosperity of leading stocks to a beta market, and has now entered the marginal spread stage, but its sustainability is uncertain [13]. - The technology sector has reached a stage where layout directions can be explored, as small - cap stocks show signs of peaking and the TMT trading volume as a proportion of the total A - share trading volume has fallen to a relatively low level [14]. 3. Summary by Relevant Catalogs 3.1 Weekly Market Observation 3.1.1 Equity Market Review and Observation - The A - share market first rose on high volume and then oscillated last week. The WanDe All - A Index fell 0.02% for the whole week. The environmental protection, pharmaceutical biology, national defense and military industry, agriculture, forestry, animal husbandry and fishery sectors led the gains, while the automobile, power equipment, non - ferrous metals, and comprehensive sectors underperformed [11]. - As of May 30, the trading volume proportions of the CSI 1000 and CSI 2000 indexes in the Shanghai and Shenzhen stock markets reached 19.59% and 33.26% respectively, both at 5 - year peak levels. Since 2020, the trading volume proportion of the CSI 2000 index has risen from less than 15% to over 30%, while that of the CSI 300 index has dropped from nearly 50% to less than 20%. The A - share market is a stock and shrinking market, and market participants are engaging in a stock game in small - and medium - cap stocks [11]. - The innovation drug sector continued to rise, driven by the approval of 11 innovative drugs from 8 Chinese companies on May 29 and important clinical data disclosed at the 2025 ASCO Annual Meeting from May 30 - June 3. However, the market heat may have reached a peak, and the phased market may end if strong logical support weakens [12]. - The "new consumption" market has spread from leading stocks to various directions such as new - listed Hong Kong - listed tea drinks, A - share pet and beauty care sectors. The market focus has shifted from pet food to non - liquor products, and the market has entered the marginal spread stage with uncertain sustainability [13]. - The technology sector has reached a stage for layout, as small - cap stocks show signs of peaking and the TMT trading volume proportion has declined. Upcoming industrial events in June may act as catalysts [14]. 3.1.2 Public Fund Market Dynamics - On May 30, 2025, the Shanghai Stock Exchange and China Securities Index Company optimized the compilation plan of the SSE 380 Index and launched the SSE 580 Index, forming a flagship broad - based index system of "SSE 50, SSE 180, SSE 380, and SSE 580". The index system covers 50% of the number of Shanghai - listed securities and nearly 90% of the market value [15]. - The SSE index system has established an "integrated two - wing" index brand of "flagship broad - based + science and technology innovation + dividend", which is an important part of promoting the entry of long - term funds into the market [16]. 3.2 Active Equity Fund Index Performance Tracking | Index Classification | Last Week | Last Month | Year - to - Date | Since Inception | | --- | --- | --- | --- | --- | | Active Stock Fund Preferred | - 0.12% | 1.45% | 4.59% | 5.44% | | Value Stock Fund Preferred | - 0.15% | 2.80% | 1.42% | 1.50% | | Balanced Stock Fund Preferred | 0.03% | 2.51% | 2.06% | - 0.17% | | Growth Stock Fund Preferred | - 0.01% | 0.94% | 9.74% | - 0.13% | | Pharmaceutical Stock Fund Preferred | 3.78% | 6.65% | 23.08% | 6.62% | | Consumption Stock Fund Preferred | - 0.93% | 3.15% | 7.37% | 0.46% | | Technology Stock Fund Preferred | - 0.01% | - 0.44% | 2.05% | 3.65% | | High - end Manufacturing Stock Fund Preferred | - 0.30% | - 0.95% | - 4.28% | - 8.90% | | Cyclical Stock Fund Preferred | - 0.81% | 3.01% | 4.22% | - 3.14% | [17] 3.2.1 Active Stock Fund Preferred - The portfolio selects 15 funds each period, with equal - weight allocation. Core positions select active equity funds based on performance competitiveness and style stability in value, balanced, and growth styles, and balance the style distribution according to the CSI Active Stock Fund Index [18]. 3.2.2 Value Stock Fund Preferred - The value style includes deep - value and quality - value styles. The index is composed of 10 funds selected from deep - value, quality - value, and balanced - value styles based on multi - period style classification [20]. 3.2.3 Balanced Stock Fund Preferred - Balanced - style fund managers balance stock valuation and growth, and switch to stocks with higher cost - performance. The index is composed of 10 funds selected from relatively balanced and value - growth styles based on multi - period style classification [21]. 3.2.4 Growth Stock Fund Preferred - The growth style aims to capture the double - click opportunity of performance and valuation during a company's high - growth stage. The index is composed of 10 funds selected from active - growth, quality - growth, and balanced - growth styles based on multi - period style classification [24]. 3.2.5 Pharmaceutical Stock Fund Preferred - The index selects funds with an average purity of no less than 60% in the pharmaceutical industry based on the intersection market value of fund equity holdings and the representative index (CITIC Pharmaceutical). An evaluation system is established, and 15 funds are selected to form the index [24]. 3.2.6 Consumption Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the consumption industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Automobile, Home Appliances, etc.). An evaluation system is established, and 10 funds are selected to form the index [29]. 3.2.7 Technology Stock Fund Preferred - The index selects funds with an average purity of no less than 60% in the technology industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Electronics, etc.). An evaluation system is established, and 10 funds are selected to form the index [30]. 3.2.8 High - end Manufacturing Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the high - end manufacturing industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Construction, etc.). An evaluation system is established, and 10 funds are selected to form the index [34]. 3.2.9 Cyclical Stock Fund Preferred - The index selects funds with an average purity of no less than 50% in the cyclical industry based on the intersection market value of fund equity holdings and representative indexes (CITIC Petroleum & Petrochemical, etc.). An evaluation system is established, and 5 funds are selected to form the index [36].

Core Viewpoint - The Shanghai Stock Exchange and China Securities Index Company announced an optimization plan for the Shanghai 380 Index and the launch of the Shanghai 580 Index to enhance the representation of small and mid-cap companies in the market [1][3]. Group 1: Index Optimization - The Shanghai 380 Index has been in place for over a decade, and its optimization is necessary due to limitations in representation, rule uniformity, and sample stability [3]. - The number of listed companies in the Shanghai market with a market capitalization below 10 billion yuan accounts for over 60%, indicating a need for indices that better represent small-cap companies [3]. - The revised Shanghai 380 Index will have a sample market capitalization coverage of 14.7%, an increase of approximately 1 percentage point from before the optimization [4]. Group 2: New Index Launch - The Shanghai 580 Index is designed to represent small-cap companies, with approximately 30%, 40%, 50%, and 60% of its sample weight coming from sectors such as the Science and Technology Innovation Board, specialized and innovative enterprises, private economy, and emerging industries [4]. - The new index system will consist of the Shanghai 50, Shanghai 180, Shanghai 380, and Shanghai 580 indices, covering a total of 1,140 stocks, which represents a coverage rate of 50% in terms of the number of securities and nearly 90% in terms of market capitalization [4]. Group 3: Future Developments - The Shanghai Stock Exchange aims to continue enriching the index system, establishing a "flagship broad-based + science and technology + dividend" index brand to facilitate long-term capital inflows [6]. - The flagship broad-based series includes the Shanghai 50, 180, 380, and 580 indices, providing essential tools for investors to participate in A-share investments [6]. - Future efforts will focus on promoting a rational, value-oriented, and long-term investment ecosystem through diversified index investment options [6].

Core Viewpoint - The Shanghai Stock Exchange and China Securities Index Co., Ltd. announced the launch of the Shanghai 580 Index on June 16, aimed at providing a comprehensive perspective on the performance of small and medium-sized listed companies in the Shanghai market [1][4][21]. Group 1: Index Overview - The Shanghai 580 Index will consist of 580 securities selected from the Shanghai market, focusing on smaller market capitalization and higher liquidity [6][20]. - The new index will complement existing indices such as the Shanghai 50, Shanghai 180, and Shanghai 380, forming a comprehensive index series that reflects the overall performance of different market capitalization companies [4][24]. Group 2: Market Context - Over 60% of listed companies in the Shanghai market have a market capitalization below 10 billion yuan, indicating a significant demand for an index that represents small-cap companies [22]. - The Shanghai 380 Index, which has been in place for over a decade, has shown limitations in representing small-cap companies, prompting the need for the new Shanghai 580 Index [22][23]. Group 3: Index Composition and Characteristics - Approximately 30% to 40% of the sample weight in the Shanghai 580 Index will be allocated to sectors such as the Science and Technology Innovation Board, specialized and innovative enterprises, private economy, and emerging industries, highlighting its innovative small-cap characteristics [20]. - The Shanghai 380 Index has been optimized to improve its representativeness, with a sample market capitalization coverage increase of 14.7%, up by about 1 percentage point from before the optimization [22]. Group 4: Broader Index System - The establishment of the Shanghai 580 Index contributes to a flagship broad-based index system that includes the Shanghai 50, 180, 380, and 580 indices, covering 50% of the number of securities and nearly 90% of the market capitalization in the Shanghai market [25]. - The index system is designed to facilitate long-term investment strategies, providing a basic allocation tool for investors in the A-share market [26].

Core Viewpoint - The Shanghai 380 Index experienced a slight decline of 0.37% to 5332.24 points, with a trading volume of 69.297 billion yuan, reflecting a mixed performance over different time frames [1] Group 1: Index Performance - The Shanghai 380 Index has increased by 0.54% over the past month, decreased by 4.32% over the past three months, and has declined by 0.51% year-to-date [1] - The index is based on a sample of 380 securities selected from the Shanghai Stock Exchange, ranked by revenue growth, return on equity, trading volume, and total market capitalization [1] Group 2: Index Composition - The top ten weighted stocks in the Shanghai 380 Index include Hu Nong Commercial Bank (1.35%), Chengdu Bank (1.25%), and Chifeng Gold (1.22%) among others [1] - The index is exclusively composed of stocks listed on the Shanghai Stock Exchange, with a 100% representation [1] Group 3: Industry Breakdown - The industry composition of the index shows that industrials account for 26.74%, information technology for 14.14%, and materials for 12.41%, among other sectors [2] - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]

Group 1 - The core viewpoint is that the current stock market presents significant investment opportunities, with many indices trading at historically low price-to-earnings (P/E) ratios, making them attractive compared to traditional bank deposits [1][3]. - The Shanghai Stock Exchange's SSE 180 Index has a P/E ratio of 11, indicating that it includes large, liquid blue-chip stocks at a "bargain price" historically [1]. - The SSE 380 Index has a P/E ratio of 17, which, while slightly higher than the SSE 180, is still considered inexpensive in the global capital market context [3]. Group 2 - The CSI 300 Index, representing the core assets of A-shares, has a P/E ratio of 13, suggesting it is undervalued and akin to a "discounted luxury" [3]. - The CSI 1000 and CSI 2000 indices, which focus on small-cap stocks, have higher P/E ratios of 26 and 35 respectively, but they are expected to rebound more significantly with economic recovery due to their stronger growth potential [3]. - The CSI Dividend Index, consisting of 100 high-dividend stocks, has an average P/E ratio of only 7.7 and a dividend yield of 6.3%, offering a much higher return compared to traditional bank deposit rates [5]. Group 3 - The article emphasizes the importance of long-term holding in stock investments, comparing it to real estate investment, which can generate continuous cash flow through dividends [5][7]. - It argues that quality stocks with stable dividends and low valuations are likely to appreciate over time, driven by economic growth and inflation [7]. - The concept of "price misalignment" in the market is highlighted, suggesting that current conditions present a unique opportunity for investors who are patient and disciplined [7].