Geopolitical conflicts ease, China Securities A500 ETF Guotai (159338) rises over 1.4%, focusing on the value of balanced allocation of internal and external demand within the China Securities A500.

Geopolitical tensions ease; on April 1, the CSI A500 ETF Cathay (159338) rose more than 1.4%. Keep an eye on the CSI A500’s value as a balanced allocation tool with both internal and external demand considerations.

China Venture Securities said that as a broad-based index for the broader market, the CSI A500 is an balanced allocation tool that gives equal weight to both internal and external demand. Its overall overseas revenue contribution is about 16%, of which the mid-stream manufacturing contribution to overseas revenue for the All-Index is about 10%. The mid-stream manufacturing segment within the index itself has a relatively high overseas revenue share, reflecting China’s manufacturing industry’s strong global capability to generate revenue. Structurally, broad-based indices such as the CSI A500 show the feature of “balanced representation of newer and older sectors”: mid-stream manufacturing provides the elasticity for upward industrial transformation, while major finance and major consumption—representing the domestic demand “base”—act as a true earnings “ballast,” offering a very strong risk-resilient underlying position. This structure allows it to be both an incremental engine for capturing “overseas expansion dividends” and a steadiness that supports domestic economic fundamentals.

Compared with the CSI 300, the CSI A500 emphasizes industry balance and leading companies within sub-sectors. Its style is more diversified and has higher growth exposure, enabling a better Beta base during cycles of industrial structure upgrading. Therefore, its index historical performance has been better. By the end of 2025, since its base date, the CSI A500 index has gained as much as 464.28%, while over the same period the CSI 300 index was 361.15%, with an excess return of 103.13 percentage points.

In terms of the number of customers, according to the 2025 semi-annual report, the total number of accounts for the CSI A500 ETF Cathay ranks first among similar products, more than triple that of the second place. More people choose the CSI A500 ETF Cathay (159338). Interested investors may also consider the CSI A500 ETF Cathay (159338).

Note: Data sources are the Fund’s 2025 semi-annual report; the number of holder accounts ranks first among 38 similar products. Mentioning individual stocks is only for industry event analysis and does not constitute any recommendation or investment advice regarding any individual stock. Short-term gains or losses of the index are for reference only and do not represent any future performance, nor do they constitute any commitment or guarantee regarding fund performance. Views may adjust with changes in market conditions and do not constitute investment advice or a commitment. The funds’ risk and return characteristics differ; investors are kindly reminded to carefully read the fund’s legal documents, fully understand product factors, risk ratings, and the principles of profit distribution, choose products that match their own risk tolerance, and invest cautiously. For information on fund fees, please consult the legal documents.

The Daily Economic News

(Editor: Dong Pingping)

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