ETFs have greater pricing power over A-shares

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Rina7RS
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Joined: Mon Dec 23, 2024 3:45 am

ETFs have greater pricing power over A-shares

Post by Rina7RS »

On the last day of 2024, the central bank announced that the second "swap facility" is coming! Soon after, the policy on stock repurchase and shareholding increase loans was also optimized: the threshold for the proportion of own funds was lowered to 10%, and credit issuance was encouraged.

On the one hand, the A500 Index was included in the "Guidelines on Market Value Management" for the first time. On the other hand, the old broad-based index has shrunk, while the new broad-based index has expanded. Will the scale of the A500 Index in 2025 surpass that of the CSI 300 and become the largest broad-based index of A-shares?

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Historically, behind several rounds of large-scale style switches cameroon telegram data in A-shares, there have been changes in the pricing power of incremental funds. As the market value of A-shares held by passive funds exceeds that of active funds, the influence of ETFs on the marginal pricing power of A-shares will continue to increase.

The huge explosion in the scale of the CSI 300 ETF in 2024 has driven the banking industry, the index's first-weighted industry, to become the industry with the largest increase last year.

According to estimates by Guosheng Securities, in 2024, ETFs will provide 106.4 billion yuan of incremental funds for the banking sector, a year-on-year increase of 417%, of which broad-based ETF funds will contribute more than 90%.
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