Recently, the A-share market has been buoyant, with the Shanghai Composite Index continuously reaching new highs. Market trading is active, with margin trading and securities lending once again exceeding two trillion yuan, and the highest trading volume in both markets reaching 2.8 trillion yuan.

Although the index has hit new highs, there is a significant divergence at the individual stock level. Despite the overall market rising, the experience varies for different investors.

Looking at the longer term, the year has also shown clear divergence. From the AI boom at the beginning of the year to later trends in innovative pharmaceuticals, new consumption, and big finance, and more recently, anti-involution and large-scale infrastructure… hotspots have emerged one after another, with market rotations faster than an electric fan.

Structured markets seem to have become the norm. In such a market, it is very difficult for ordinary investors to seize opportunities. It is likely that just after investing in technology, innovative pharmaceuticals take off, always missing the timing.

This aligns with the recent question many investors have: why is it harder to make money in a bull market?

Therefore, against this backdrop, achieving ideal investment returns in the current A-share market has become a critical strategic issue that requires determining investment directions in advance.

If you want both the relative stability of a broad market index and the high-growth dividends of small and mid-cap stocks, the CSI A500 Index, which combines both, might be a good choice.

CSI A500: Balanced Sectors, Gathering of Leaders, Offensive and Defensive Advantages

First, the CSI A500 Index has comprehensive and balanced sector distribution, achieving 100% sector coverage with sector-neutral treatment, making it more representative of the A-share market.

Second, the CSI A500 Index gathers industry leaders, essentially including leading companies from CSI tertiary industries. Specifically, it includes 76 "number one" leaders in CSI tertiary industries and 90 "number one," "number two," or "number three" leaders in tertiary industries.

Finally, the components of the CSI A500 Index include about 50% traditional value sectors and about 50% emerging growth sectors. Compared to the CSI 300, the CSI A500 reduces exposure to traditional sectors and includes more leaders in emerging fields such as power equipment, pharmaceuticals and biotechnology, electronics, and computers. This allows it to capture the upside potential of tech stocks while maintaining the risk resilience of traditional value sectors.

Strong Historical Performance and High Ability to Reach New Highs

Historically, the CSI A500 Index has shown strong performance and a high ability to reach new highs. As of July 31, 2025, the CSI A500 Index has gained 381.34% since its base date, while the CSI 300 and CSI 800 Index have returned 307.56% and 343.31%, respectively, over the same period.

Looking back at the three bull market peaks in 2007, 2015, and 2021, the CSI A500 Index reached new highs since its base date each time, while the CSI 300 and CSI 800 Index did not.

Multiple Positive Factors Suggest Continued A-Share Market Momentum

Liquidity: Since August, the trading volume in both markets has been about 1.98 trillion yuan, indicating high liquidity. Coupled with the expected Fed rate cut in September, domestic liquidity is likely to remain loose.

Fundamentals: In July, the national economy maintained stable and progressive development, with sustained growth in production and demand, overall stable employment and prices, and a continued rebound in social financing growth. As "anti-involution" policies continue to be implemented, economic fundamentals are expected to improve steadily.

Policy: There is strong policy support for the economy and the stock market. Current policies, such as "anti-involution," boosting real estate, promoting consumption, and cutting interest rates and reserve requirements, are being rolled out continuously, supporting economic recovery and the回暖 of the A-share market.

Interested investors can consider the CSI A500ETF (159338) to easily position themselves for the A-share market trends.