What Are the Index Weighted Stocks?

The weighted stocks of an index and their concentration are also one of the key perspectives for observing the differences between indices.

Looking at the top ten weighted stocks, the CSI 300 Index and the CSI A50 Index share eight stocks, which are essentially blue-chip stocks, such as Kweichow Moutai (the leader in baijiu), Contemporary Amperex Technology (CATL, the leader in new energy), China Merchants Bank (the leader in banking), and Midea Group (the leader in home appliances).

Since the CSI 300 Index includes 300 constituent stocks, its individual stock concentration is the lowest among these four indices. The top ten weighted stocks account for only 22% of the total, with the highest-weighted stock, Kweichow Moutai, accounting for just 6%. The vast majority of constituent stocks account for less than 0.5%, while the top ten weighted stocks of the other three indices each account for around 50%.

Precisely because the CSI 300 Index is the largest "basket," the constituent stocks of the other three indices can more or less be found within it. Among the 50 constituent stocks of the CSI A50 Index, 49 are included in the CSI 300 Index. Of the 100 constituent stocks of the ChiNext Index, 33 overlap with the CSI 300 Index, and among the 50 constituent stocks of the SSE STAR 50 Index, 17 overlap with the CSI 300 Index.

At the same time, it is not hard to notice that the SSE STAR 50 Index has the lowest overlap with the other three indices. Notably, since both the ChiNext Index and the SSE STAR 50 Index are single-market indices, their constituent stocks are entirely different.

Listed companies are the "foundation of the market." Those with good governance, stable returns, and promising growth potential are the cornerstone of the sustained, stable, and healthy development of the capital market. The recently introduced new "National Nine Measures," which include policies such as raising IPO listing thresholds and strengthening delisting supervision, aim to improve the quality of listed companies at the source. This will help enhance overall market returns, boost investor confidence, and, in the long run, cultivate more high-quality enterprises, thereby solidifying the foundation for high-quality development in the capital market.

Currently, the overall valuation of the A-share market is at a historical low. Whether compared horizontally or vertically, A-shares still possess strong investment appeal. The CSI 300 Index, CSI A50 Index, ChiNext Index, and SSE STAR 50 Index are all mainstream broad-based indices in the market. Investors can rationally assess their risk tolerance based on their investment goals, time horizon, experience, and asset status, and make informed decisions after understanding the basic characteristics and valuation levels of these indices to allocate to one or multiple related indices.