On January 24, 2024, the central bank announced that it would cut the reserve requirement ratio by 0.0 on February 55PCT will release about 1,000 billion yuan of long-term liquidity, and continue to promote the steady decline of comprehensive social financing costs. This series of policies is expected to create a more accommodative macro environment, which has pressed the acceleration button in the process of market recovery. The accelerated recovery of the market will be beneficial to almost all major industry sectors, and the value of ** index investment, which can better represent the overall situation of the market, is highlighted. Standing at an important juncture in the first half of the recovery, how to lay out in advance to better grasp the best opportunities has become a matter of concern to everyone. E Fund SZSE 100 ETF (159901, OTC Feeder Class A 110019 Class C 004742) closely tracks the SZSE 100 Index and is one of the largest products linked to the index.
Focus on growth stocks and bring together high-quality assets
The SZSE 100 Index excludes the bottom 10%** of the average daily turnover in the last six months** from the sample space, and selects the top 100** stocks with the largest average daily total market capitalization as the sample stocks. In the case that the number of constituent stocks accounts for less than 4% of **A shares, the total market capitalization, free float market capitalization and operating income of SZSE 100 constituent stocks account for nearly 35% of **A shares, and the net profit attributable to the parent company accounts for more than 60%, which has a high coverage of **. From the perspective of dividends, the constituent stocks of the index account for nearly half of the dividends of **A shares, highlighting the characteristics of blue chip stocksOn the whole, it can better represent the situation of ** high-quality assets.
Chart: The SZSE 100 has a strong sector representativeness.
Data**: wind, constituents, market capitalization, revenue, profit data as of 2023 12 31
The dividend is for 2022.
Constituent stocks iterate with the innovation industry and grasp the main line of investment in the times
Looking back at the previous market upswing, there were always one or several core sectors leading the rally and contributing the main momentum. From 2006 to 2008, when urbanization was good for the real estate, nonferrous metals, and steel industries, to 2019, when the industry was upgraded and high-end manufacturing industries such as new energy were launched, there were significant differences in the leading industries due to different factors such as market development stages and core policies. Correspondingly,The constituent stocks of the SZSE 100 Index have been actively adjusted with the rapid changes in the industrial themes of the times, and the industries with the highest proportion are always close to the themes of the times, helping investors to grasp the main line of investment in a timely manner.
At present, the fundamentals of the main distribution industries are marginally good. As of January 26, 2024, the top three constituent stocks of the index are pharmaceutical and biological, electronics, and power equipment, accounting for %. Among them, the internationalization process of the pharmaceutical industry is accelerating, and the overseas business is supporting the boom; The electronics sector is benefiting from the cyclical replenishment of the industry and the catalysis of new products such as MR; The demand of the power equipment sector maintains a high degree of prosperity, and the demand for power equipment is gradually bottoming out and stabilizing, which is expected to usher in an improvement in profitability. In the context of the improvement of the macro environment, the index has strong upward momentum.
Chart: The industry distribution of the constituent stocks of the SZSE 100 Index can better reflect the main line of investment.
Data**: wind
The SZSE 100 is highly resilient and has attracted much attention from the market in the early stage of recovery
In previous upswings, the SZSE 100 has shown better resilience than its peer** broad-based index. In the early stage of the market, the portfolio generally performs well based on the certainty of performance, and in the later growth style, the portfolio tends to be outstanding with its excellent explosiveness. As a representative index of the first growth style, the SZSE 100 has been able to fully benefit from the whole stage of the market upswing and has attracted much attention in the early stage of recovery.
Chart: The SZSE 100 Index is remarkably resilient.
Data**: wind, data as of 2024 1 26
The valuation level has been fully experienced**, and the layout is relatively cost-effective
From a valuation perspective, the SZSE 100 has a rolling P/E ratio of 1639, which corresponds to a five-year quantile of only 039%，It has a high margin of safety and cost performance.
Data**: wind, data as of 2024 1 26
In the early stage of recovery when the current policy increases macro recovery and the marginal fundamentals of core industries are improving, SZSE 100 index-related products with a growth style are high-quality targets to fully grasp the recovery opportunities. E Fund SZSE 100 ETF (159901, OTC Feeder Class A 110019 Class C 004742) is one of the largest products linked to the index in the market.
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