Want to invest in the Greater Bay Area but don’t know which suitable targets to choose? Bay Chuang 100 ETF came into being.
On August 29, ICBC Credit Suisse Guangdong-Hong Kong-Macao Greater Bay Area Innovation 100 ETF was released on the Shenzhen Stock Exchange. This is the first Bay Innovation ETF product to be applied for and issued, and it is also the first domestically-traded ETF that spans Shanghai, Hong Kong and Shenzhen. Cross-border ETFs in the three places.
Wang Hong, deputy general manager of the Shenzhen Stock Exchange, said at the product launch conference that supporting the construction of the Bay Area is both an opportunity and a responsibility for the Shenzhen Stock Exchange. The Shenzhen Stock Exchange has always been committed to serving technological innovation enterprises, private enterprises, and growth-oriented enterprises, and plays an active role in promoting high-quality development in the Bay Area. Under the leadership of the China Securities Regulatory Commission, the Shenzhen Stock Exchange will actively integrate into the construction of the Bay Area, enrich the product system, accelerate the construction of the Shenzhen ETF market, and guide more medium and long-term funds to enter.
The Guangdong-Hong Kong-Macao Greater Bay Area Innovation 100 Index tracked by ICBC Credit Suisse Bay Innovation 100 ETF was established on April 9, 2019. It is the core flagship index of the Guangdong-Hong Kong-Macao Greater Bay Area Index Series. Wang Hailu, general manager of ICBC Credit Suisse, said that the Baychuang 100 Index selects 100 high-quality companies with outstanding innovative capabilities and at the forefront of China's economy from Shanghai, Hong Kong and Shenzhen as index sample stocks, which is in line with the theme of the times of innovation and development and highlights the greatness of the times. The unique advantages and characteristics of the Bay Area reflect its good growth potential and investment value.
"The core index in the Guangdong-Hong Kong-Macao Greater Bay Area Index Series of the Bay Innovation 100 Index reflects the overall style of listed companies in the Greater Bay Area and highlights the advantages and characteristics of the Bay Area's economic development. The Bay Innovation ETF is more domestically It provides a convenient and effective investment tool for foreign investors to allocate assets in the Bay Area, invest in listed companies with Bay Area characteristics, and enjoy the development dividends of the Bay Area," Wang Hong said.
Statistics show that the latest constituent stocks of the Baytron 100 Index are distributed in the three markets, including 72 A-shares in Shanghai and Shenzhen Stock Exchanges and 28 Hong Kong stocks. In terms of industry distribution of constituent stocks, information technology ranks first with 35 stocks and a weight of 37.8%, industrial stocks have 17 stocks and a weight of 6.9%, and consumer discretionary and medical care have 14 stocks and a weight of 11.1% and 5 respectively. %, with 4 financial stocks accounting for 25.1% of the weight.
According to the latest heavyweight stocks, the top ten heavyweight stocks in the Baytron 100 Index are Tencent Holdings, China Merchants Bank, Ping An of China, Hong Kong Stock Exchange, Gree Electric Appliances, Midea Group, CK Hutchison, CITIC Securities, For China Electronics Holdings and Vanke A, the weights of the top three heavyweight stocks are all over 9.6%, and the total weight of the top ten heavyweight stocks is as high as 65%, indicating a relatively concentrated market value.
The proportion of the top ten heavyweight stocks in the Bay Innovation 100 Index:
Zhang Yun, general manager of the ICBC Credit Suisse Index Investment Center, said that the Bay Innovation 100 Index is a benchmark that highlights the innovative development of the Bay Area. Index, with good investment prospects. The weight of the information technology industry among its constituent stocks is significantly higher than that of other indexes. Among the constituent stocks, the patents obtained by A-share companies in the past three years are significantly higher than the level of all A-share companies. More than 80% of the companies have obtained 10 patents in the past three years. The above patents have outstanding scientific and technological innovation capabilities.
Data shows that from June 30, 2017 (index base day) to June 28, 2019, the cumulative return rate of the Bay Innovation 100 Index reached 18.21%, and the cumulative return rate of the Shanghai and Shenzhen 300 Index during the same period was 4.33%, the Shanghai Composite 50 Index is 14.93%, and the Gulf Innovation 100 has achieved considerable excess returns relative to the two broad-based indexes.
Currently, ICBC Credit Suisse Bay Chuang 100 ETF is being issued. In addition, the first batch of Bay Chuang 100 ETF products have also been approved recently. Guangfa Fund received the approval on August 14, and South China and China's Bay Chuang 100 ETF were also approved on August 27.
(Source of article: China Business News)