Since the beginning of the year, a large amount of capital has been allocated through index funds. As of May 8, the cumulative net inflow of funds into stock ETFs across the market has exceeded 350 billion yuan, with broad-based indices such as the CSI 300 Index, CSI A50 Index, ChiNext Index, and SSE STAR Market 50 Index being particularly favored by investors.

Want to know why these broad-based indices are "popular"? Let’s start with the positioning of these four indices.

What Are the Differences in Index Positioning?

Since the implementation of the comprehensive registration-based IPO system, the multi-tiered capital market system has become clearer, essentially covering enterprises across different industries, types, and growth stages.

The main board emphasizes large-cap blue-chip characteristics, focusing on supporting high-quality enterprises with mature business models, stable operating performance, large scale, and industry representativeness.

The CSI 300 Index and CSI A50 Index focus on the core assets of China's economy. Among them, the CSI 300 Index consists of 300 large-cap, highly liquid stocks from the Shanghai and Shenzhen markets, while the CSI A50 Index comprises the 50 largest stocks by market capitalization among the leaders of CSI tertiary industries.

Unlike the main board, the ChiNext market highlights growth and innovation, strongly supporting strategic emerging industries and high-tech enterprises. The STAR Market, on the other hand, adheres to its "hard tech" positioning, specializing in serving six strategic emerging industries: next-generation information technology, high-end equipment, biomedicine, new materials, new energy, and energy conservation and environmental protection, guiding market resources toward technological innovation.

Therefore, most companies listed on the ChiNext and STAR Markets are involved in "new economy" sectors such as high-tech and advanced manufacturing, with prominent high-tech and high-growth characteristics. Among them, the ChiNext Index consists of 100 large-cap, highly liquid stocks from the ChiNext market, currently leaning more toward the new energy and biomedical industries. The SSE STAR Market 50 Index comprises 50 large-cap, highly liquid stocks from the STAR Market, with the semiconductor industry currently accounting for a relatively high proportion.