Behind the stirring up of broad-based ETFs lies the profound policy implications
Posted: Thu Feb 13, 2025 3:57 am
As of December 31, 2024, the total size of ETFs exceeded 3.7 trillion yuan, an increase of 1.7 trillion yuan from the end of 2023, of which 1.4 trillion yuan was contributed by broad-based ETFs.
To put it bluntly, 2024 is a carnival feast for broad-based ETFs. Nine out of the top ten ETF tracking indices are broad-based. It took only two months for the A500 to become the second largest broad-based index, second only to the CSI 300 Index.
Since October 15, 2024, the shares of A500-related ETFs have grown against the trend, with cumulative net subscriptions exceeding 200 billion yuan.
The chairman of the China Securities Regulatory Commission chinese overseas british data once bluntly stated that the market currently urgently needs to address the pain points and bottlenecks in the entry of long-term funds such as social security, insurance, and wealth management into the market, in order to cultivate a market ecology that encourages long-term investment.
There is no doubt that the "New Nine Articles", market value management, repurchase and increase of re-lending, swap facilities, and the inclusion of broad-based index funds in pensions are one of the key themes for the whole year of 2025.
On the last day of 2024, the central bank announced that the second "swap facility" is coming! Soon after, the policy on stock repurchase and shareholding increase loans was also optimized: the threshold for the proportion of own funds was lowered to 10%, and credit issuance was encouraged.
On the one hand, the A500 Index was included in the "Guidelines on Market Value Management" for the first time. On the other hand, the old broad-based index has shrunk, while the new broad-based index has expanded. Will the scale of the A500 Index in 2025 surpass that of the CSI 300 and become the largest broad-based index of A-shares?
To put it bluntly, 2024 is a carnival feast for broad-based ETFs. Nine out of the top ten ETF tracking indices are broad-based. It took only two months for the A500 to become the second largest broad-based index, second only to the CSI 300 Index.
Since October 15, 2024, the shares of A500-related ETFs have grown against the trend, with cumulative net subscriptions exceeding 200 billion yuan.
The chairman of the China Securities Regulatory Commission chinese overseas british data once bluntly stated that the market currently urgently needs to address the pain points and bottlenecks in the entry of long-term funds such as social security, insurance, and wealth management into the market, in order to cultivate a market ecology that encourages long-term investment.
There is no doubt that the "New Nine Articles", market value management, repurchase and increase of re-lending, swap facilities, and the inclusion of broad-based index funds in pensions are one of the key themes for the whole year of 2025.
On the last day of 2024, the central bank announced that the second "swap facility" is coming! Soon after, the policy on stock repurchase and shareholding increase loans was also optimized: the threshold for the proportion of own funds was lowered to 10%, and credit issuance was encouraged.
On the one hand, the A500 Index was included in the "Guidelines on Market Value Management" for the first time. On the other hand, the old broad-based index has shrunk, while the new broad-based index has expanded. Will the scale of the A500 Index in 2025 surpass that of the CSI 300 and become the largest broad-based index of A-shares?