The New Economy ETF (159822.OF) was established on September 29, 2020 as the first batch of Shenzhen-Hong Kong interconnect ETFs. It adopts the QDII model. Similar to most cross-border ETFs, it operates in the ETF-of-ETF format, and will be listed on the Shenzhen Stock Exchange on October 23, 2020. The New Economy ETF mainly invests in the shares of the ICBC Southern East England S&P China New Economy Industry ETF (3167.HK), tracks the S&P China New Economy Industry Index, and has “T+0”
Characteristics of trading products.
The S&P China New Economy Industry Index has been in effect since April 9, 2019. Using December 31, 2010 as the base period, it is a stock index issued by Standard & Poor's. It mainly invests in consumer and technology Chinese companies listed in the three major markets of Hong Kong stocks, US stocks, and A-shares. It aims to share the new growth impetus brought about by China's economic transformation to consumer dominance.
The S&P China New Economy Industry Index has long-term investment value:
1) Basic characteristics: The S&P China New Economy Industry Index aims to measure new economic sectors in mainland China and Hong Kong. Among mainland China and Hong Kong listed companies listed domestically and internationally, blue-chip listed companies representing China's consumer, medical, and communications service industries were selected after market capitalization, liquidity, and industry screening.
2) Index investment concept: China has a huge volume of 1.4 billion customers, and what that oversize brings is a strong database and irreplaceable market capacity. Increasingly improved infrastructure construction and China's unique “sharing economy culture and e-commerce culture” have enabled China's consumer industry to apply technology and “internal circulation”
Driven by, it will show great potential.
3) Index constituent stocks and industry distribution: As of August 17, 2020, the S&P China New Economy Industry Index covers 159 new economy industry stocks based in mainland China and the Hong Kong Special Administrative Region listed in the four major markets of Hong Kong, the US, Shanghai and Shenzhen, covering a freely circulating market capitalization of 2.5 trillion US dollars, with a total market capitalization of 4.7 trillion US dollars. The top ten holdings account for more than 50% of the top ten holdings. The index defines and screens industries according to the international industry classification standard GICS. The constituent stocks mainly come from non-core consumer, communications, finance, and core consumer industries (the four industries together account for 83.13%).
4) Introduction to heavy-duty stocks: The S&P China New Economy Industry Index mainly invests in “leading China's new economy” companies, such as Alibaba, JD, Tencent Holdings, Meituan Dianping, etc. These “technology-driven consumption” enterprises cover all aspects of Chinese people's daily “clothing, food, housing, travel, entertainment, health, and luxury”, and “using technology to drive consumption” is also the goal that many science and innovation companies want to become.
5) Index performance: The S&P China New Economy Industry Index has accumulated a 201.8% increase since December 31, 2010. We compared it with the Shanghai and Shenzhen 300 Index, the MSCI China Index, and the Hang Seng China Enterprise Index and found that its yield and Sharp ratio were significantly superior to the other three indices, and the risk fluctuation was less.
Risk warning: This report calculates performance and risk characteristics based on the fund's historical data. Historical performance does not represent the future. The future performance of the index is affected by market fluctuations. When investing in industry-themed funds, you should pay attention to the risks unique to the industry. For details, please refer to the relevant report of the corresponding industry team of the Everbright Securities Research Institute.