Core Viewpoint - The launch of the Huaxia SSE 580 ETF (530530) on August 6 aims to provide investors with a new tool to capitalize on the investment opportunities in small-cap stocks in the Shanghai market, reflecting the growing demand for high-growth small-cap listed companies in China [1][4]. Group 1: Index and Fund Overview - The Huaxia SSE 580 ETF closely tracks the SSE 580 Index, which is designed to represent small-cap stocks in the Shanghai market, complementing larger indices like SSE 50, SSE 180, and SSE 380 [1][3]. - The SSE 580 Index includes 580 securities selected based on liquidity and ESG criteria, representing the top small-cap stocks by average market capitalization over the past year [1][2]. Group 2: Industry Distribution and Performance - As of July 29, the SSE 580 Index shows significant weight in industries such as Industrial (27.8%), Information Technology (20.0%), and Materials (11.5%), outperforming the SSE 180 and SSE 380 indices [2]. - The SSE 580 Index has experienced a remarkable increase of 51.12% over the past year, significantly outperforming other major indices like the SSE Composite Index and CSI 300 [2]. Group 3: Growth Potential and Future Projections - The SSE 580 Index's constituent stocks have an average R&D intensity of 12.8%, with a compound annual growth rate of R&D investment at 10.3% over the past three years, indicating strong innovation potential [2][3]. - Forecasts suggest that the net profit attributable to shareholders for the SSE 580 Index will reach approximately 189.47 billion yuan and 224.76 billion yuan in 2026 and 2027, respectively, with year-on-year growth rates of 20.34% and 18.63% [3]. Group 4: Company Background and Market Position - Huaxia Fund is a leading player in the domestic index investment and ETF management sector, managing over 650 billion yuan in equity ETFs as of the end of 2024, and has been recognized as the industry leader for 20 consecutive years [4]. - The company has demonstrated agility in product development, quickly launching the SSE 580 ETF in response to market demand following the index's announcement [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].