The ETF landscape remains intensely competitive, with another popular niche theme attracting a collective push from public fund managers. Recent disclosure updates on the official website of the China Securities Regulatory Commission show that more than ten leading and prominent domestic public fund companies, including E Fund, GF Fund, Fullgoal Fund, Southern Fund, Bosera Fund, China Universal Asset Management, ICBC Credit Suisse Asset Management, China Merchants Fund, Penghua Fund, Huabao Fund, and Ping An Fund, collectively submitted product registration applications for fundraising between March 19 and March 20. The proposed products are all index-tracking products linked to the Hang Seng A-Share Grid Equipment Index, with types including ETFs, ETF feeder funds, or standard index funds, indicating a very clear clustering trend.
This concentrated filing activity signals the public fund industry's strong recognition of the long-term investment value in the grid equipment subsector. It also suggests a forthcoming expansion in the supply of thematic index products, providing investors with a richer selection of tools for gaining exposure to the grid equipment sector.
The lineup of public fund institutions participating in this wave of grid equipment thematic index product filings is notably strong, covering top-tier fund companies and other major players in the industry. The filed products all target the Hang Seng A-Share Grid Equipment Index, with product types catering to both on-market trading via ETFs and off-market investors through feeder funds and standard index funds.
It is worth noting that this is not the first time these institutions have moved into this space. As early as late January to early February this year, several fund companies had already submitted applications for similar products. Furthermore, besides the new products tracking the Hang Seng A-Share Grid Equipment Index, there are also ETFs or ETF feeder funds focused on the power utilities sector filed by ChinaAMC and Yinhua Fund. The underlying index for these, the CSI All Share Power Utilities Index, is a comprehensive benchmark covering the entire power industry chain, including power generation, transmission, and distribution, serving as a barometer for the whole sector.
The Hang Seng A-Share Grid Equipment Index, which is the focus of this collective push by fund managers, is compiled by Hang Seng Indexes Company Limited. It was officially launched on February 28, 2022, with a base date of December 31, 2018, and a base value of 3000 points. The index is designed to accurately reflect the overall performance of mainland China-listed companies related to grid equipment.
Compared to similar indices, the construction rules of this index require that constituent stocks derive at least 40% of their revenue from grid equipment-related businesses, ensuring its purity and focus on the power transmission sector.
Data shows that over the past year, this index has achieved a cumulative gain of 104.66%. Its top ten constituent stocks by weight include TBEA Co., Ltd., NARI Technology Co., Ltd., and Sieyuan Electric Co., Ltd., covering leading companies in sub-sectors such as power transmission and transformation equipment, grid automation equipment, and communication cables and accessories.
In fact, ETF products tracking the Hang Seng A-Share Grid Equipment Index, managed by E Fund, Guotai Asset Management, and GF Fund, already exist in the market. These products garnered significant market attention in early 2026, with notable capital inflows. For example, the Guotai Hang Seng A-Share Grid Equipment ETF had fund units outstanding of only 335 million at the end of last year. By March 20, the units outstanding had surged to 2.905 billion, an increase of more than 7.5 times, while its net asset value grew from 552 million yuan to 5.789 billion yuan, an increase of nearly 9.5 times. Similarly, the E Fund Hang Seng A-Share Grid Equipment ETF, which listed on March 4, started with 484 million units but saw this figure rise to 1.639 billion units by March 20, a increase of over 2.5 times in just two weeks. Additionally, the GF Hang Seng A-Share Grid Equipment ETF has also seen its units outstanding multiply by more than four times since the beginning of the year.
Industry analysis widely suggests that the simultaneous move by multiple fund companies to launch grid equipment thematic ETF products reflects a shared consensus on the long-term investment opportunities presented by China's energy structure transformation and the construction of a new-type power system. The grid equipment industry chain involves numerous listed companies, with significant variations in technological barriers and competitive landscapes. Through a single ETF product, investors can conveniently gain diversified exposure to leading companies within this theme, mitigating single-stock risks while efficiently capturing the overall growth potential of the industry.
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