Investors can gain targeted exposure to core assets in the engineering machinery sector, as the Hua An Engineering Machinery ETF (Subscription Code: 512423) is set to launch on July 6th. This product will closely track the CSI Engineering Machinery Theme Index, aiming to help investors capture opportunities within the sector and participate in its growth.
The engineering machinery industry is a crucial pillar for national economic development, serving as essential equipment for infrastructure project implementation. It is highly sensitive to downstream demand fluctuations and is often viewed as a barometer for economic activity and capital expenditure. The sector can be broadly categorized into nine main types: excavating machinery, earthmoving and transport machinery, lifting machinery, compaction machinery, piling machinery, reinforced concrete machinery, road construction machinery, rock drilling machinery, and other specialized equipment.
According to information from the China Securities Index Co., Ltd., the CSI Engineering Machinery Theme Index selects 50 representative listed company securities whose businesses are involved in the manufacturing of complete machinery or components for the engineering machinery field. This index aims to reflect the overall performance of companies within this theme.
From a supply chain perspective, the index's constituents focus on industry leaders, providing comprehensive coverage across key segments. This includes upstream raw materials and core components, midstream original equipment manufacturers, and downstream application areas, highlighting the integrated nature of the industry chain.
The fund manager indicates that domestic demand for engineering machinery is gradually shifting away from reliance solely on new real estate construction metrics. It is now being driven concurrently by infrastructure projects, urban renewal, water conservancy projects, mining, new energy infrastructure, and equipment replacement. On the project front, major initiatives such as the Yajiang Hydropower Station, the six major artificial canals, the new Tibet railway, the Yangtze River coastal high-speed rail, and rural road networks are advancing, with planned investment scales being substantial—some projects reaching trillions of yuan. As these projects commence, infrastructure investment is expected to transition from policy anticipation to tangible construction demand.
Furthermore, the fund manager notes that the industry is progressively phasing out high-energy-consumption, low-efficiency equipment while actively developing new energy products like pure electric and hybrid models. Electrification and intelligentization are becoming significant variables driving the sector's evolution from cyclical recovery to technological advancement. Simultaneously, overseas expansion remains one of the most critical growth engines for the engineering machinery segment. Data shows that in the first quarter of 2026, China's engineering machinery product exports reached $16.066 billion, representing a year-on-year increase of 24.3%.
The Hua An Engineering Machinery ETF will be managed by Wang Chao and will closely follow the CSI Engineering Machinery Theme Index. The index and quantitative investment team at Hua An Fund will oversee the new fund's operations. As one of the influential index fund teams in the industry, Hua An Fund's index and quantitative team launched and manages the country's first index fund, boasting over 23 years of experience in index product management. The firm's public index fund offerings cover a wide range, including domestic A-shares, bonds, commodities, as well as Hong Kong stocks, U.S. stocks, and other QDII funds.
Fee Structure Details: Subscription fee (where S represents shares): For S < 1 million shares, 0.30%; for S ≥ 1 million shares, a flat fee of 500 RMB per transaction applies. The management fee is 0.5% per annum, and the custody fee is 0.1% per annum. The fund manager does not charge subscription fees for offline cash subscriptions processed directly. Sales agents handling online or offline cash subscriptions may reference the above fee structure, charging a commission not exceeding 0.30%. Investors submitting multiple cash subscription applications will be charged according to the fee tier corresponding to each application.
Risk Disclosure: This fund is an equity fund, and its expected risk and return are higher than those of money market funds, bond funds, and hybrid funds. The fund primarily invests in constituent stocks and alternative constituents of its target index, exhibiting risk-return characteristics similar to the index. As an index fund, investors face potential risks including failure to meet tracking error targets, cessation of index services by the compiler, and suspension of constituent stocks. The fund management company does not guarantee that the fund will be profitable or provide a minimum return. Past performance of the fund is not indicative of its future results, and the performance of other funds managed by the manager does not guarantee this fund's performance. Fund product returns are subject to volatility, and investing involves risks. Investors should exercise caution and carefully review the fund's contract, prospectus, and other legal documents.
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