Report Overview - Report Title: "2025 December 25th, Investment Value Analysis of Bank of Communications CSI Smart Selection Shanghai-Hong Kong Technology 50 ETF - Index Fund Product Research Series Report No. 263" [1] - Report Recipient: Zhonggeng Fund [2] - Analysts: Fang Siqi, Deng Hu [3] 1. Report Industry Investment Rating - Not provided in the report 2. Core Views - Policy support drives long - term investment opportunities in Chinese technology assets under low - valuation conditions. With multiple central policies from 2023 - 2025, the technology sector has strong fundamentals and growth certainty [3][8]. - Chinese technology stocks have low valuations and significant repair potential. Current index valuations are at historical lows, and as policy dividends are realized, their value will increase, especially in high - growth sectors [3][12]. - The CSI Smart Selection Shanghai - Hong Kong Technology 50 Index selects high - growth technology companies. It covers various technology sectors, has a relatively low valuation, and offers good long - term returns [3]. - The Bank of Communications CSI Smart Selection Shanghai - Hong Kong Technology 50 ETF is an effective tool for investing in the technology sector, being the only ETF tracking this index [3] 3. Summary by Directory 3.1 Policy Support and Mid - to Long - Term Investment Opportunities in Chinese Technology Assets - **Innovation Policy Reinforcement**: Policies aim to reduce R & D costs, strengthen corporate innovation, and guide resources to high - tech areas. The technology finance system is improving, and the sector has mid - to long - term investment value [8]. - **Valuation and Investment Appeal**: Chinese technology stock index valuations are at historical lows, lower than overseas counterparts. There is significant potential for valuation repair as policies take effect and corporate profitability improves [12]. - **Growth Elasticity of Technology Indexes**: Since September 24, 2024, technology indexes have outperformed the broader market, showing high elasticity and resilience. Their relative advantage is expected to continue [16] 3.2 CSI Smart Selection Shanghai - Hong Kong Technology 50 Index - **Focus on Core Technology Assets**: The index selects 50 high - growth technology companies from the Shanghai, Shenzhen, and Hong Kong markets, reflecting the performance of high - potential technology stocks [17][21]. - **Coverage of Popular Technology Sectors**: It has a clear technology - dominated style, covering sectors like electronics, machinery, and power equipment. The top ten components account for 53.27% of the weight, and the index has a relatively low valuation compared to peers [24][29][31]. - **Stable Long - Term Performance**: Since its establishment in 2016, the index has had a cumulative return of 126.38% and an annualized return of about 9.55%. Since September 24, 2024, it has outperformed similar indexes, showing high sensitivity to the technology market [33][34] 3.3 Bank of Communications CSI Smart Selection Shanghai - Hong Kong Technology 50 ETF (517950) - The ETF was established on June 26, 2025, and listed on July 7, 2025. Managed by Cai Zheng and Shao Wenting, it has a management fee of 0.50% and a custody fee of 0.05%. It closely tracks the CSI Smart Selection Shanghai - Hong Kong Technology 50 Index and is the only ETF tracking this index [42][43]

Core Viewpoint - The launch of the CCB CSI Selected Technology 50 ETF (code: 517950) on the Shanghai Stock Exchange marks a significant step in promoting China's strategic emerging industries and reflects the company's commitment to the national strategy of achieving high-level technological self-reliance [1][2]. Group 1: Product Overview - The ETF tracks the CSI Selected Technology 50 Index, which focuses on key sectors such as electronic semiconductors, communications, innovative pharmaceuticals, and advanced manufacturing, aligning with the national strategy for technological self-reliance [2]. - The index employs a rigorous selection process, including a minimum R&D expenditure threshold of 5%, and utilizes a three-dimensional optimization system based on market capitalization, profitability, and growth [2]. - The ETF aims to provide investors with an efficient tool to access core assets in China's hard technology sector across the A-share and Hong Kong markets, facilitating a comprehensive investment approach [2]. Group 2: Market Context and Policy Support - The "14th Five-Year Plan" emphasizes technological self-reliance as a core development goal, focusing on critical areas such as integrated circuits and industrial mother machines, supported by various policy measures [1]. - The expansion of the Shanghai-Hong Kong Stock Connect and the inclusion of high-quality companies from the Sci-Tech Innovation Board into the mutual market framework enhance the investment landscape for technology assets [1]. - The combination of policy incentives and industrial upgrades is expected to accelerate domestic substitution and deepen technological iterations, providing robust long-term growth potential for core technology assets in the three markets [1]. Group 3: Future Outlook - The company plans to continue enhancing its index product matrix and leverage its research-driven investment philosophy to uncover opportunities in cutting-edge technology sectors [3]. - The introduction of the ETF is seen as a way to meet diverse investor needs by combining on-market and off-market investment strategies, thus broadening access to the hard technology sector [2][3].

Core Viewpoint - The launch of the CCB CSI Smart Selection Hong Kong-Shenzhen Technology 50 ETF marks a significant development in the investment landscape, focusing on hard technology sectors across the Hong Kong, Shenzhen, and Shanghai markets [1] Group 1: ETF Launch and Features - The CCB CSI Smart Selection Hong Kong-Shenzhen Technology 50 ETF (code: 517950) was officially listed on the Shanghai Stock Exchange [1] - The ETF tracks the CSI Smart Selection Hong Kong-Shenzhen Technology 50 Index, a custom index co-created by CCB Index Team and China Securities Index Company, which is the first of its kind to cover the three markets and focus on strategic emerging industries [1] - The ETF's constituent stocks are concentrated in core hard technology fields such as electronics, semiconductors, communications, innovative pharmaceuticals, and advanced manufacturing [1] Group 2: Investment Rationale - Industry experts highlight that the "14th Five-Year Plan" emphasizes technological self-reliance, with policy dividends and industry prosperity resonating in the hard technology sector [1] - The long-term growth logic for core technology assets in the Hong Kong, Shenzhen, and Shanghai markets is clear, driven by domestic substitution and technological breakthroughs [1] - The ETF serves as an efficient tool for investors to gain exposure to core assets across the entire hard technology industry chain in China [1] Group 3: Additional Product Offerings - On the same day as the ETF's launch, CCB Schroder Fund also filed for a feeder fund linked to the ETF, aiming to provide a combined investment approach for different types of investors [1] - This dual product strategy seeks to meet diverse investment needs and facilitate participation in the technology investment landscape [1]

Core Viewpoint - The establishment of the CCB Schroder CSI Selected Technology 50 ETF marks a significant step for CCB Schroder in the technology finance sector, aligning with national strategies for technological self-reliance and innovation [1][2][3] Group 1: Product Overview - The CCB Schroder CSI Selected Technology 50 ETF has a launch scale of 392 million yuan and is the first strategy-based technology ETF covering the Hong Kong, Shanghai, and Shenzhen markets, focusing on strategic emerging industries [1][2] - The ETF tracks the CSI Selected Technology 50 Index, which is a custom index created by CCB Schroder and the China Securities Index Company, focusing on core areas of hard technology such as electronics, semiconductors, communication, innovative pharmaceuticals, and advanced manufacturing [1][5] Group 2: Strategic Importance - The launch of the ETF is intended to provide investors with effective tools to participate in China's technology industry upgrade, enhancing the competitiveness of high-end manufacturing and supporting the transition from a manufacturing power to a manufacturing strong nation [2][3] - The ETF's unique positioning aligns with national strategies, providing a diversified investment tool that reflects the overall development trend of China's technology industry [10] Group 3: Investment Value - The technology sector in China is expected to have significant mid-to-long-term investment value, supported by government policies and the ongoing AI-driven industrial upgrade [9][10] - The CSI Selected Technology 50 Index has shown strong historical performance, with a return of 154.76% from 2017 to the present, outperforming other technology indices [6][10] Group 4: Management and Research Team - The ETF employs a dual fund manager system, with experienced managers who have a strong background in index product management and quantitative strategies, aiming to minimize tracking error while capturing excess returns [7] - CCB Schroder's research team is composed of members from top-tier universities, ensuring high-quality product management and continuous improvement in investment strategies [7]

Core Viewpoint - The establishment of the CCB Schroder CSI Selected Technology 50 ETF marks a significant step for CCB Schroder in the technology finance sector, aligning with national strategies for technological self-reliance and innovation [2][5][6]. Group 1: Product Overview - The CCB Schroder CSI Selected Technology 50 ETF has a founding scale of 392 million yuan and is the first strategy-based technology ETF covering the Hong Kong, Shanghai, and Shenzhen markets, focusing on strategic emerging industries [2][3]. - The underlying index, the CSI Selected Technology 50 Index, is a unique creation that emphasizes hard technology sectors such as electronics, semiconductors, communications, innovative pharmaceuticals, and advanced manufacturing [3][9]. Group 2: Strategic Importance - The launch of the ETF aims to provide investors with effective tools to participate in China's technological upgrade, enhancing the competitiveness of high-end manufacturing and supporting the transition from a manufacturing power to a manufacturing stronghold [5][6]. - The ETF is positioned to benefit from the current policy support and market attention towards technology sectors, particularly in the context of the "14th Five-Year Plan" and the upcoming "15th Five-Year Plan" [6][14]. Group 3: Investment Value - The technology sector is expected to remain a key investment theme, with significant potential driven by government policies and advancements in AI and other emerging technologies [14][15]. - The CSI Selected Technology 50 Index has shown strong historical performance, with a return of 154.76% from 2017 to the present, outperforming other technology indices [10][16]. Group 4: Management and Research Capabilities - The ETF employs a dual fund manager system, combining expertise in product management and quantitative strategies to minimize tracking errors and capture excess returns [11][12]. - CCB Schroder's research team is well-equipped with strong academic backgrounds and extensive experience, ensuring high-quality product management and continuous improvement [12].

Group 1 - The core viewpoint of the article is that the China Merchants Jinling Fund has received approval from the CSRC for its previously submitted ETF, which is expected to launch in December [1] - The ETF was submitted on September 29, marking the first time in 14 years that the company has re-entered the ETF product line [1] - The fund has collaborated with the China Securities Index Company to create a benchmark product called the China Securities Selected Hong Kong and Shanghai Technology 50 Index [1] Group 2 - This index is the first in the market to cover the Hong Kong, Shanghai, and Shenzhen stock exchanges, focusing on strategic emerging industries [1] - The constituent stocks of the index are concentrated in core areas of hard technology, including electronic semiconductors, communications, innovative pharmaceuticals, and advanced manufacturing [1] - The index aims to select high-quality companies with strong R&D capabilities and significant growth potential, highly aligning with national strategic emerging industries and specialized new enterprises [1]