The domestic economy is experiencing sustained marginal improvement, with a turning point in listed company profitability beginning to emerge, solidifying the foundation for long-term market optimism. Against this backdrop, ChinaAMC will officially launch the ChinaAMC SSE Composite Exchange Traded Open-End Index Securities Investment Fund (Product Ticker: SSE Composite ETF ChinaAMC; Subscription Code: 510143; Trading Code: 510140) starting June 1, 2026.
This product closely tracks the SSE Composite Index (hereinafter referred to as the SSE Index), aiming to provide investors with an efficient tool for one-click allocation to core market assets.
Recent economic indicators point to a sustained path of marginal improvement for the domestic economy. The Producer Price Index (PPI) has shown year-on-year increases for several consecutive months and turned positive, confirming its entry into an upward cycle.
Historical patterns indicate that industrial enterprise profit growth generally trends with the PPI, suggesting that the current PPI upcycle is likely to drive a recovery phase for corporate earnings.
Simultaneously, domestic monetary policy maintains an appropriately accommodative stance, with increased willingness for medium- to long-term capital from sources such as household deposits, insurance funds, and foreign investment to enter the market.
From a profitability perspective, sectors like new energy, technology, cyclical commodities, and exports are performing strongly. Surging demand for AI computing power, accelerated import substitution, and robust demand for energy storage are driving volume and price increases in related industries.
Improvements in global supply-demand dynamics and geopolitical factors support rising prices for non-ferrous metals, chemicals, and other commodities. High growth in exports of electric vehicles, lithium batteries, and medical devices, coupled with increasing shares in global supply chains, has led to profit recovery in numerous sub-sectors, suggesting the market may be entering a long-term positive phase driven by earnings.
Combined with positive signals in the geopolitical environment and initial effects of new domestic property market policies, market risk appetite is poised for positive recovery. Broad-based index ETFs, with advantages like high transparency, low fees, and risk diversification, have become a key arena for asset allocation by various types of capital.
As the core broad-based index reflecting the overall trend of the Shanghai market, the SSE Index has seen significantly improved representativeness and stability since its compilation methodology was optimized in 2020.
As of May 6, 2026, the index's constituent stocks cover core Shanghai market assets, accounting for nearly 60% of total market capitalization and over 80% of net profit attributable to the parent company. Stocks with state-owned or central enterprise backgrounds hold a weight close to 60%, offering a relatively high margin of safety and dividend potential.
In terms of risk-adjusted returns, the SSE Index has also demonstrated strong resilience. From the methodology adjustment to early May 2026, its cumulative return reached 44.02%, with annualized volatility and maximum drawdown at relatively low levels.
Regarding sector allocation, the index balances traditional blue-chips with technological innovation. The weight of innovation-driven industries like electronics and power equipment has been increasing, forming a balanced "value + growth" portfolio. The index's current price-to-earnings ratio is at a low level among major broad-based indices, highlighting its long-term allocation value.
In sector allocation, the SSE Index has relatively high weights in banking and electronics, with other sectors more balanced. Compared to 2020, the banking weight has decreased from 15.78% to 15.48%, and non-bank financials from 12.48% to 6.75%. Conversely, electronics have increased from 4.40% to 13.45%, and power equipment from 3.08% to 5.14%, reflecting a continuous rise in the weight of innovation-driven industries.
In terms of market cap style, the index is stabilized by large-cap leaders while also containing numerous small- and mid-cap constituents that provide growth elasticity. As of May 6, 2026, its trailing twelve-month P/E ratio was 17.73 times, at a low level among major broad-based indices, indicating a high margin of safety. Its return on equity over the past decade has consistently been higher than that of the SZSE Composite Index and the CSI All Share Index, suggesting superior profitability, making the current period a potential "window" for allocation.
The proposed fund manager for the SSE Composite ETF ChinaAMC is Mr. Liu Wei, who is responsible for ETF-linked index research, major asset allocation, and sector/style rotation, bringing extensive experience in index investment management.
As the largest domestic equity ETF manager, ChinaAMC possesses a strong index investment and research team, with its equity index scale consistently ranking first in the industry for many years. Since launching the first domestic ETF in 2004, the company has continuously led product innovation, having now built a comprehensive product line covering core broad-based indices, sector themes, strategy indices, cross-border, and commodities.
It is committed to creating the "Lego" of the asset management industry—defining, creating, and managing assets—to provide one-stop index allocation services for institutional and individual investors.
The management fee rate for the SSE Composite ETF ChinaAMC (Subscription Code: 510143) is 0.15%, and the custody fee rate is 0.05%. For subscriptions, a subscription fee of 0.30% applies for amounts less than 1 million units, while a flat fee of 1,000 RMB per transaction applies for amounts of 1 million units or more. The fund manager does not charge subscription fees for offline cash subscriptions.
Sales agents may charge certain subscription fees/commissions for online and offline cash subscriptions with reference to the above fee structure. Investors may be charged a commission not exceeding 0.3% at subscription/redemption agencies, which includes relevant fees charged by stock exchanges and registration and settlement institutions. On-exchange trading fees are subject to the actual charges by securities firms.
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