Recently, the first A-share broad-based index fund under the foreign-funded public offering BlackRock Fund - BlackRock Shanghai and Shenzhen 300 Index Enhanced Fund was officially launched. The proposed fund manager and BlackRock Fund Quantitative and Multi-Asset Investment Director Wang Xiaojing said that BlackRock Fund is optimistic about the long-term investment cost-effectiveness of A-shares, will focus on the index investment market, and strive to obtain excess returns through the group's unique systematic active equity investment platform. Wang Xiaojing said that he is optimistic about the long-term investment value of the Chinese A-share market. BlackRock Group has long landed SAE strategy products in domestic joint venture wealth management companies and has three years of actual performance. The A500 index products will sink the market value to the mid-cap stock range, with a smaller proportion in the financial industry, more leaning towards new quality productivity and advanced manufacturing, which is a better investment perspective. BlackRock is bullish on the overall development of the Chinese economy and hopes to provide investors with good broad-based index investment tools that can grasp both market beta and stock alpha. Regarding the issuance of the Shanghai and Shenzhen 300 Index Enhanced Fund, Wang Xiaojing stated that the domestic large-cap stock index represented by the Shanghai and Shenzhen 300 Index is valuable from a multi-asset allocation perspective. The dividend yield of stocks in the Shanghai and Shenzhen 300 Index exceeds 2%, which has good long-term investment cost-effectiveness from a cash flow perspective compared to representative stock indexes of mature markets overseas or long-term Chinese government bonds. In addition, the Shanghai and Shenzhen 300 Index has a long history, a complete ecosystem, and includes individual stocks, futures, ETFs, and options, allowing various types of investors to fully express their investment views without the risk of one-sided risk concentration. Regarding the source of excess returns, Wang Xiaojing believes that it is necessary to explore alternative data and use artificial intelligence (AI) for signals. Artificial intelligence is mainly used in two aspects: reading text streams, such as brokerage reports, social media evaluations of stocks, company financial reports, etc., aggregating this data to generate quantified signals; and using AI to dynamically allocate weights to existing quantified signals. At the portfolio level, Wang Xiaojing stated that 80% of the fund's non-cash assets should be placed in the constituent stocks of the Shanghai and Shenzhen 300 Index, which is a relatively stable beta. The remaining 20% weight is placed outside the index to find investment targets with alpha and ample liquidity. Regarding tracking error, Wang Xiaojing mentioned that a certain active risk budget will be set up in the initial operation of the fund, and in the future, the active risk budget exposure will be adjusted according to market conditions. If there is a drawdown in the excess return portion, the active risk error will be reduced.