On July 9, 2025, the Shanghai Composite Index $SSE Comp(000001.SH)$ climbed above 3,500 points; on July 10, it reached a high of 3,526 points, moving towards the peak of the September 24th trend last year.
As of July 11, the latest report shows the index further rising to 3,546.5 points.
The breakthrough of the 3,500 point mark signifies a significant milestone in the development of China's A-shares. The current market is characterized by low volatility, low turnover, and relatively low trading volume. The trend of the market is dominated by allocation capital, with future market expectations focusing on slow growth.
On the positive side of A-share market news, there are several policy benefits:
Economic Policies: The deputy director of the National Development and Reform Commission stated that China's policy direction for attracting and utilizing foreign investment is consistent, and it will further relax market access and promote orderly expansion of openness in relevant fields. Fiscal policies are actively advancing, with a series of consumption-promoting policies being introduced, and the real estate market is gradually stabilizing.
Policy Support: Six departments issued the "Guiding Opinions on Financial Support to Boost and Expand Consumption," clarifying the direction of liquidity support and consumption upgrading. The central bank and other departments launched a 800 billion yuan capital market support tool, effectively stabilizing market expectations.
Industry Policies: Mergers and reorganizations policies inject momentum into the market, optimizing the market ecosystem. The technology industries such as artificial intelligence and robotics are strongly supported by policies.
According to yesterday's closing information, the top ten A-shares by market value are as follows: Among them, bank stocks account for the top five $ICBC(01398)$ $CCB(00939)$ $CHINA MOBILE(00941)$ $ABC(01288)$ $MINSHENG BANK(01988)$ , followed by $Kweichow Moutai Co.,Ltd.(600519)$ , $BYD Co., Ltd.(BYDDY)$ , $Petrochina Company Limited(601857)$ , $Cnooc Limited(600938)$ , and $CATL(03750)$ 。
No. | Stock Name | Total Market Value (Billion Yuan) | Year-to-Date Increase | Industry |
|---|---|---|---|---|
1 | ICBC (601398) | 28797.63 | 19.24% | Diversified Banking |
2 | CCB (601939) | 25819.96 | 17.56% | Diversified Banking |
3 | China Mobile (600941) | 24291.39 | -3.00% | Integrated Telecommunications Services |
4 | ABC (601288) | 22083.93 | 20.92% | Diversified Banking |
5 | BOC (601988) | 18752.76 | 10.34% | Diversified Banking |
6 | Kweichow Moutai (600519) | 17919.66 | -4.56% | Baijiu and Wines |
7 | BYD (002594) | 17650.52 | 13.65% | Automobile Manufacturing |
8 | CNPC (601857) | 15849.62 | -0.35% | Integrated Oil & Gas |
9 | CNOOC (600938) | 12880.62 | -8.17% | Oil & Gas Exploration and Production |
10 | CATL (300750) | 12401.32 | 4.80% | Electrical Components and Equipment |
The rebound in China's A-share market may also drive an increase in U.S.-listed A-share assets.
There are various China ETFs available for investors in the U.S. stock market. Here are some of the main China ETFs and their relevant information:
Main China ETFs
$iShares MSCI China ETF(MCHI)$ : This ETF aims to track the investment results of an index composed of China stocks investable by international investors. It covers large and medium-sized companies in various industries and is one of the commonly used tools for investing in the overall performance of China's stock market.
$SPDR S&P China ETF(GXC)$ : This ETF tracks the S&P China Index, providing investors with investment opportunities in Chinese companies listed in Hong Kong and Chinese companies listed in the United States.
$Xtrackers Harvest CSI 300 China A-Shares ETF(ASHR)$ : This ETF tracks the CSI 300 Index, reflecting the performance of China's A-share market. It provides investors with a channel to directly invest in China's A-share market, including companies registered in mainland China and listed on the Shanghai and Shenzhen Stock Exchanges.
Industry-specific ETFs
$KraneShares CSI China Internet ETF(KWEB)$ Focuses on China's internet industry, tracking the performance of Chinese internet companies listed overseas. It provides investors with the opportunity to invest in Chinese internet giants such as Alibaba and Tencent.
$iShares China Large-Cap ETF(FXI)$ : This ETF focuses on large-cap Chinese stocks, mainly investing in large Chinese enterprises listed in Hong Kong. It provides investors with the opportunity to invest in large-cap blue-chip stocks in China, suitable for investors seeking stable growth.
$Invesco China Technology ETF(CQQQ)$ : Aims to track the performance of the AlphaShares China Technology Index by investing in the index's constituent stocks to achieve similar returns to the index. The top ten holdings of CQQQ include Tencent Holdings, Meituan, Pinduoduo, Baidu, Kuaishou, Horizon Robotics, Bilibili, Sunny Optical Technology, Kingdee International, and SenseTime Group.
$KraneShares MSCI China Clean Technology Index ETF(KGRN)$ : Aims to track securities that derive at least 50% of their revenue from environmental protection products and services, covering five key clean technology environmental themes: alternative energy, sustainable water resources, green buildings, pollution prevention and control, and energy efficiency.
$JPMORGAN ACTIVE CHINA ETF(JCHI)$ : Issued by JPMorgan Chase, it aims to actively manage investments in China's stock market.
Leveraged ETFs
$Direxion Daily FTSE China Bull 3X Shares(YINN)$ : Aims to provide investment returns three times the daily returns of the FTSE China 50 Index. The FTSE China 50 Index consists of the 50 largest and most liquid Chinese stocks, representing the core assets of China's stock market. Due to YINN's three times leverage strategy, its volatility is significantly higher than that of traditional ETFs. When the market is favorable, investors can obtain higher returns; but when the market is unfavorable, losses will also be correspondingly magnified.
For more investment tips on China asset U.S. ETFs, welcome to read:
The 4 Hottest China ETFs of 2024: Billions in Inflows as Market Heat Surges
China Stock ETFs Soar This Week: Is the Rebound Finally Here?
U.S. and China ETFs Shine Bright: A Deep Dive into Last Week's Top Performers!
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