E Fund CSI 1000ETF investment value analysis: Multiple factors are favorable for the growth style of small-cap stocks, and the allocation of CSI 1000 index is just the right time.

2022-07-2 1 Chen Aolin/Yin Guotai Junan Securities Co., Ltd.

This report analyzes the allocation value of CSI 1000 index under the circumstance that the macro environment is conducive to the growth style of small-cap stocks, focusing on E Fund CSI 1000ETF( 159633).

abstract:

The style of small-cap stocks is mainly influenced by market liquidity, and wide credit is good for small-cap stocks. At present, M2 continues to expand and the growth rate of social financing has bottomed out, and it is about to enter a period of wide credit, which is good for small-cap style. In May 2022, M2 was11%year-on-year, up by 0.6% compared with April, and the growth rate of social financing stock was 10.5%, up by 0.3% compared with April. It is expected to expand further in the future, and small-cap stocks will fully benefit from abundant liquidity.

The growth style is mainly influenced by the state of economic growth, and the economic recovery is good for growth stocks. When corporate profits go up as a whole, the high growth in the past is more likely to continue, so that growth stocks can benefit from the increase of growth certainty, and the economy will show greater resilience after the domestic epidemic has eased, and the recovery is expected to continue.

The CSI 1000 index is recommended under the small-cap growth style. The CSI 1000 index has many constituent stocks, and the industry distribution is very balanced. The market value distribution is mainly in the small market value range of about 5-20 billion. Judging from the historical performance of the index, the fluctuation of the index is more significant than that of the CSI 300 and CSI 500, and it has higher flexibility in the process of market rise.

Analysis of investment value of CSI 1000 index;

After full adjustment, the index valuation is currently in the process of steady repair, still at the level of historical average-a standard deviation, and there is significant room for future valuation repair.

The content of specialized, special and new giants in CSI 1000 index is significantly higher than other broad-based indexes, and will fully benefit from the fixed-point assistance of policies.

Since the epidemic, the index profitability has steadily rebounded, indicating that the index profitability is strong.

Since 20 19, the attention of institutions has greatly increased, and the latest annual report shows that the proportion of institutional allocation has doubled from a low point.

CSI 1000 stock index futures and stock index options will be listed on July 22, 2022. From the historical experience, the introduction of stock index futures and stock index option contracts is helpful to improve index liquidity.

Related products with investment value of CSI 1000 index: E Fund CSI 1000ETF( 159633), which was issued from July 22, 2022 to July 29, 2022, closely followed the performance of CSI 1000 index, and was a passive index investment product.

Risk warning: 1. This conclusion is only drawn from the quantitative model, which is not consistent with the strategic point of view of this study. 2. The conclusion is mainly based on historical data, and the market environment may change in the future.