Group 1 - The core viewpoint of the news is the positive market response to the recent policy changes and adjustments in the CSI 500 index, which are expected to enhance the performance of medium-sized enterprises in China [1] - On August 10, 2025, the Ministry of Finance and several other ministries announced a policy to increase the R&D expense deduction ratio for qualified "specialized, refined, and innovative" enterprises in the CSI 500 to 120%, aimed at strengthening support for technology-oriented SMEs [1] - The Producer Price Index (PPI) data released on August 12 showed a month-on-month increase of 1.2% in the prices of industries with significant weight in the CSI 500, such as non-ferrous metals and chemicals, indicating a marginal improvement in demand within the midstream manufacturing sector [1] Group 2 - On August 3, the China Securities Index Co., Ltd. announced a semi-annual adjustment to the CSI 500 index, adding 50 new listed companies primarily in emerging sectors like renewable energy and biomedicine, with the adjustment effective after the market close on August 16 [1] - The Guotai CSI 500 ETF (561350) tracks the CSI 500 index (000905), which selects 500 medium-sized listed companies from the Shanghai and Shenzhen markets, covering multiple industries and reflecting the overall performance of small and medium-sized enterprises in the A-share market [1]

Group 1 - The current derivatives market shows an optimistic outlook for equity assets, with a decline in the VIX of the CSI 500 and an increase in the basis rate [1] - Recent institutional research indicates a rising interest in the "petroleum and petrochemicals," "non-ferrous metals," "steel," "real estate," and "comprehensive finance" sectors [1] - No industry is currently triggering crowded indicator thresholds, suggesting limited adjustment pressure in the overall market [1] Group 2 - In the relative return allocation for July 2025, sectors such as non-ferrous metals and machinery are gaining attention, reflecting a preference for certain cyclical and growth sectors [1] - The Guotai CSI 500 ETF (561350) tracks the CSI 500 Index (000905), which includes the top 500 stocks by average daily market capitalization, excluding the constituents of the CSI 300 [1] - The CSI 500 Index is characterized by its diversified industry distribution and strong market representation, serving as an important benchmark for measuring the overall performance of small-cap growth companies [1]