The issuance of funds once again saw the emergence of "sunshine fund". On October 26, Taikang Fund announced that its CSI A500 ETF linked fund was closed early. The original deadline for collecting funds was scheduled for November 8, 2024. As one of the first batch of A500 off-exchange ETF linked funds approved for issuance in the market, Taikang CSI A500 ETF linked fund, managed and issued by China Merchants Bank, was issued on October 25 and announced the early closure on October 26, making it the first fund among the 20 products to close the collection. The fact that it ended the collection in just one day reflects the current high attention and recognition of the market for index-type products, especially leading broad-based products. Locking in core assets of A shares The CSI A500 ETF remains hot. On October 15, on the first day of the listing of the first batch of CSI A500 ETFs, 43 off-exchange index funds collectively applied; on October 18, 25 of these products were approved at "lightning speed"; on October 25, including 10 CSI A500 ETF linked funds, 9 CSI A500 common index funds, and 1 CSI A500 index-enhanced fund, a total of 20 products were put on sale. The aforementioned 20 products are CSI A500 ETF linked funds under 10 public fund institutions such as Jiashi Fund, China Merchants Fund, Taikang Fund, and Huatai Bairui Fund, CSI A500 index funds under 9 institutions such as eFund, Bosh Fund, and Zhongou Fund, and a CSI A500 index enhanced fund under Huashang Fund. Currently, the A-share market has attracted high attention from domestic and foreign investors. On one hand, the A-share market valuation is attractive, with the Shanghai Composite Index's P/E ratio at only 14.4 times, compared to major global indexes at relatively low levels (data source: Wind, as of October 25, 2024). On the other hand, the rate cut by the Federal Reserve has improved the global liquidity environment, and a series of favorable policies introduced domestically have undoubtedly enhanced the attractiveness of the A-share market. In response to this, Wei Jun, head of the quantitative investment department at Taikang Fund, stated that the new "Nine National Policies" guide and support listed companies to increase dividend payouts and enhance sustainable returns. High-quality leading listed companies have relatively stronger dividend distribution capabilities and willingness. Since September 24, a series of policy combinations have effectively propelled the economy upwards, boosting market confidence. With its innovative industry balance design concept, strict sample selection standards, optimized industry structure, and component composition, the CSI A500 index is expected to become a strong representation of China's core assets, attracting widespread attention from domestic and foreign investors. At the current time point, considering the changes in the domestic and international economic environment, the allocation value of the CSI A500 is expected to be further highlighted. In the view of Liu Jiayin, head of index investment at Jiashi Fund, after the market experienced the first rapid rise, core assets with fundamental support and relatively low valuations are expected to continue to perform well. As representatives of high-quality assets with both fundamentals and features of connectivity, ESG, the CSI A500 index may continue to benefit from positive policies, institutional entry into the market, and the return of core asset valuations, becoming the preferred choice for individual and domestic and foreign institutional investors to layout their investments in A shares. How will it impact the market? As for the potential impact on the market, TF Securities stated that the listing of CSI A500 ETF not only provides investors with more investment options, but also indicates the further maturity of the Chinese capital market. ETFs, as a low-cost, highly transparent investment tool, will greatly promote the popularization of mainstream investment concepts, align the capital market with the global market, and enhance market efficiency and participation. With more institutional investors entering the market, the activity and depth of the A-share market are expected to be enhanced, which will drive the overall development of the market, thereby forming a more diversified investment ecosystem. TF Securities believes that, in terms of the type of investors participating in CSI A500 ETF investment, the participation of institutional investors will help stabilize market sentiment and reduce investment risks in small-cap stocks. Compared to retail investors, institutional investors have a deeper understanding of the market and their participation may guide the market to be more rational and reduce speculative behaviors. In addition, as more and more institutional investors rush into the market, the market's sensitivity and awareness of information will also increase, which will help improve the pricing efficiency of the entire market. Source: "Wind," edited by GMTEight: Chen Qiuda.