The A500ETF, consisting of 10 funds, finally debuted on the stock market today, according to a reporter from Caifin. Both exchanges will hold listing events for it. "Raise funds at 2700 points, open positions at 3500 points" has become a vivid memory for the A500ETF. The A500ETF funds under Morgan, Fuguo, Huatai Bairui, CMB, and Taikang were listed on the Shanghai Stock Exchange, while those under Nanfang, Jiashi, Jingshun Changcheng, YinHua, and Guotai were listed on the Shenzhen Stock Exchange. With 200 billion in incremental funds entering the market, the competition between these 10 A500ETF funds officially enters the 2.0 stage. As of October 14th, the 10 A500ETF funds disclosed their latest net asset value. From the net asset value situation, only the two A500ETF funds under Huatai Bairui and Nanfang have net asset values above 1, at 1.0086 and 1.0005 respectively, slightly higher than 1. Due to differences in entry time and position size, each fund's net asset value performance varies. For example, Taikang's A500ETF fund had a decline of -4.95%, failing to catch the rapid rise before listing. It is worth noting that the latest net asset value of each fund will also be the opening reference price on the day of listing. A financial industry observer joked about the A500ETF's difficulties, saying it was founded at 2700, positions opened at 3500, and listed at 3200, a road destined to be rocky for the A500ETF. Indeed, as mentioned by the WeChat account "Chu Manager's Chat," for many frontline securities practitioners, net asset performance determines the pressure index for each salesperson, and customer complaints inevitably point to them. Investing is a test of patience, and short-term fluctuations do not necessarily indicate anything. It is a well-known principle for all investors, yet it can be difficult to remain calm when it comes to specific products. On the first day of listing, Nanfang Fund disclosed a self-purchase plan using existing funds of 50 million yuan to invest in its A500ETF, committing to hold it for at least one year. The decision to self-purchase indicates the company's confidence in the A-share market and its products. In addition to self-purchasing, various product vendors are also working intensively to add market makers, indicating that holding operations will undoubtedly become the second battlefield. Prior to the listing of the A500ETF, many A500ETF funds under Guotai, Nanfang, Jiashi, YinHua, etc., have increased liquidity service providers, which will help improve ETF market liquidity and trading efficiency during the holding phase. It is worth noting that with the development of ETFs, fund managers are paying more attention to market makers, and the coverage rate of liquidity service providers in the Shanghai and Shenzhen stock markets continues to increase. As of the first half of this year, there were 27 market makers in the Shenzhen fund market, covering 393 ETFs, with a coverage rate of 99%, a 2% increase from the beginning of 2023. In the Shanghai market, there were a total of 33 market makers, with a coverage rate of 29% of the total transaction amount compared to 2023. By October 8th, all the A500ETF funds had taken positions, with different timings and positions ranging from 40% to 90%. In terms of shareholder structure, the A500ETF gained institutional recognition during the first fundraising phase, with brokerage firms, trusts, private equity, and insurance companies participating, as well as state-owned enterprises such as Guoxin Investment and foreign entity Barclays Bank. As of October 8th, Morgan's A50ETF had the most shareholders, with 22,900 accounts, and Guotai's A500ETF had over 20,000 investors, with individual investors accounting for 82.40%, ranking second among the 10 funds at the time. Guotai Fund indicated that the high proportion of individual investors is a positive sign, as it reflects the confidence and interest of retail investors in the A500ETF. The A500ETF, consisting of 10 funds, finally debuted on the stock market today, according to a reporter from Caifin. Both exchanges will hold listing events for it. "Raise funds at 2700 points, open positions at 3500 points" has become a vivid memory for the A500ETF. The A500ETF funds under Morgan, Fuguo, Huatai Bairui, CMB, and Taikang were listed on the Shanghai Stock Exchange, while those under Nanfang, Jiashi, Jingshun Changcheng, YinHua, and Guotai were listed on the Shenzhen Stock Exchange. With 200 billion in incremental funds entering the market, the competition between these 10 A500ETF funds officially enters the 2.0 stage. As of October 14th, the 10 A500ETF funds disclosed their latest net asset value. From the net asset value situation, only the two A500ETF funds under Huatai Bairui and Nanfang have net asset values above 1, at 1.0086 and 1.0005 respectively, slightly higher than 1. Due to differences in entry time and position size, each fund's net asset value performance varies. For example, Taikang's A500ETF fund had a decline of -4.95%, failing to catch the rapid rise before listing. It is worth noting that the latest net asset value of each fund will also be the opening reference price on the day of listing. A financial industry observer joked about the A500ETF's difficulties, saying it was founded at 2700, positions opened at 3500, and listed at 3200, a road destined to be rocky for the A500ETF. Indeed, as mentioned by the WeChat account "Chu Manager's Chat," for many frontline securities practitioners, net asset performance determines the pressure index for each salesperson, and customer complaints inevitably point to them. Investing is a test of patience, and short-term fluctuations do not necessarily indicate anything. It is a well-known principle for all investors, yet it can be difficult to remain calm when it comes to specific products. On the first day of listing, Nanfang Fund disclosed a self-purchase plan using existing funds of 50 million yuan to invest in its A500ETF, committing to hold it for at least one year. The decision to self-purchase indicates the company's confidence in the A-share market and its products. In addition to self-purchasing, various product vendors are also working intensively to add market makers, indicating that holding operations will undoubtedly become the second battlefield. Prior to the listing of the A500ETF, many A500ETF funds under Guotai, Nanfang, Jiashi, YinHua, etc., have increased liquidity service providers, which will help improve ETF market liquidity and trading efficiency during the holding phase. It is worth noting that with the development of ETFs, fund managers are paying more attention to market makers, and the coverage rate of liquidity service providers in the Shanghai and Shenzhen stock markets continues to increase. As of the first half of this year, there were 27 market makers in the Shenzhen fund market, covering 393 ETFs, with a coverage rate of 99%, a 2% increase from the beginning of 2023. In the Shanghai market, there were a total of 33 market makers, with a coverage rate of 29% of the total transaction amount compared to 2023. By October 8th, all the A500ETF funds had taken positions, with different timings and positions ranging from 40% to 90%. In terms of shareholder structure, the A500ETF gained institutional recognition during the first fundraising phase, with brokerage firms, trusts, private equity, and insurance companies participating, as well as state-owned enterprises such as Guoxin Investment and foreign entity Barclays Bank. As of October 8th, Morgan's A50ETF had the most shareholders, with 22,900 accounts, and Guotai's A500ETF had over 20,000 investors, with individual investors accounting for 82.40%, ranking second among the 10 funds at the time. Guotai Fund indicated that the high proportion of individual investors is a positive sign, as it reflects the confidence and interest of retail investors in the A500ETF.It shows the higher universality of the product; on the other hand, it also reserves good liquidity and activity for the performance of the product after it is launched.Multiple industry-first ETFs Since the new "Nine Articles of the Nation", the first batch of broad-based ETFs, the CSI A500 ETF, has come with a historical mission from the beginning of its approval. First, reviewing the timeline, this is an ETF that has not yet issued an index, but the product has already ended sales, which is also an industry first. In terms of time, on August 27, the China Securities Index Company announced that the release date of the CSI A500 Index would be September 23, on September 5, the ETF tracking this index officially applied, and on September 6, the first batch of CSI A500 ETFs were approved. In April 2024, the new "Nine Articles of the Nation" proposed "establishing a fast-track approval channel for exchange-traded open-end index funds (ETFs) to promote the development of indexed investment", helping to accelerate the approval speed of ETFs, with an approval time of only one day from application to approval. Secondly, the CSI A500 ETF is also the first large-scale issuance of broad-based ETFs after the second stage of public fund commission rate reform, without high rewards or other hidden rules. How strong is the sales force of securities firms? This is a new validation. Before that, Caixin has also reported that behind the completion of the issuance target is the effort of fund companies and securities firms. Overall, this issuance has two main features: First, fund companies carried out nearly a hundred roadshows at securities firms. Caixin reporters learned that E Fund organized nearly a hundred roadshows to push the issuance. Over the past weekend, they had already started pushing roadshows in full force to ensure the successful fundraising. "The same product, when communicated directly to customers, makes a big difference," revealed an E Fund official. On the first day of issuance, Morgan Asset Management held a product launch event, with professional analysis of index investment value through online live broadcasts. During the issuance period, the retail channel service team conducted nearly 300 training roadshows for securities firm clients. CSOP Asset Management also said that during the product issuance period, the company's channel team conducted hundreds of online and offline training roadshows for securities firms. Secondly, securities firms with good custody or underwriting capabilities showed strong sales force. In the early stages of issuance, industry insiders revealed that securities firms valued their overall cooperation with fund companies, including strengthening resource exchanges in various aspects. Improving custody and underwriting scale and maintaining scale are also valued by securities firms. Third, the dividend mechanism is further advanced, with high-frequency dividend and compulsory dividend features in A500ETF products. HUACHUANG Financial Xu Kang team stated that the A500ETFs of Guotai, CSOP, and Yinhua are evaluated for dividends on a monthly basis. For example, with CSOP A500ETF, the announcement shows that the fund manager can evaluate every month and distribute profits if the fund meets the dividend conditions. Huatai Borui, Morgan, Fuguo, China Merchants, Taikang, and E Fund's A500ETFs are evaluated quarterly. For example, for Morgan CSI A500ETF, the fund contract stipulates that on the last trading day of each quarter, if the excess return rate of the ETF relative to its underlying index is positive, a compulsory dividend will be made, with a distribution proportion of no less than 60% of the excess return rate. China Merchants, Taikang, and Guotai's A500ETFs also have similar compulsory dividend arrangements. In the view of the Xu Kang team, the dividend arrangement of broad-based index ETFs has been further optimized, emphasizing again the improvement of the holder's experience through product dividends. Morgan Asset Management also pointed out that with the continuous introduction of policies encouraging listed companies to increase the frequency and magnitude of dividends, more attention is being paid to dividends and value investment in the market, enhancing market stability and investment returns. The dividend era of A-shares is foreseeable. Under this background, the dividends of the component stocks of the underlying index may become an important source of excess returns for ETFs. By distributing dividends based on excess fund returns, it effectively transfers the dividends of listed companies to investors through fund dividends, allowing fund investors to truly experience the continuous improvement of the A-share market ecosystem and enhancing the "sense of achievement" in investment, helping to achieve long-term investment goals. This article is reprinted from "Caixin", GMTEight Editor: Xu Wenqiang.