Reliable. Why the Shanghai and Shenzhen 300 Index can hit a new high is related to the composition of the index.

1. is a relatively large stock market in Shanghai and Shenzhen stock markets, and it is an index composed of 300 stocks drawn by the leaders of various industries. So, like Wuliangye and Maotai, which are familiar to everyone, these are the stocks of the fund group, but they are actually the constituent stocks of the Shanghai and Shenzhen 300 Index.

The past two years have been a big year for the fund. The fund is getting bigger and bigger, and many new funds have been issued. Some old funds are now tens of billions in size. Like these funds, they like to hold groups. When they hold a group, most of them choose the stocks in the Shanghai and Shenzhen 300 Index, so this has a very obvious supporting role for the Shanghai and Shenzhen 300 Index.

So in the past two years, we have seen the Shanghai and Shenzhen 300 Index quickly return to the high levels of 20 15 and 20 17, which is related to the composition of individual stocks in the Shanghai and Shenzhen 300 Index.

2. Another second reason is that Northbound Capital also prefers to buy these leading stocks.

By the end of last year, among the stocks held by Northbound Capital, the market value of Shanghai and Shenzhen 300 Index reached 1.75 trillion, accounting for 79% of the whole Northbound Capital. Both domestic funds and funds in the north prefer Shanghai and Shenzhen 300 stocks, so the Shanghai and Shenzhen 300 index is better.

Thirdly, the fluctuation of the Shanghai and Shenzhen 300 index is actually much better than other indexes. We can see that since the benchmark date of the Shanghai and Shenzhen 300 Index in 2004, the volatility of the Shanghai and Shenzhen 300 Index is far less than that of the Shanghai Composite Index and the CSI 50 Index, and the annualized rate of return has reached 9.3%, which is already a very good performance.

4. The current P/E ratio of the Shanghai and Shenzhen 300 Index is 14.85, which is relatively low compared with the S&P 500 of 25.76 in the US stock market. Of course, financial real estate has lowered the valuation, which is not a small factor. But overall, if the Shanghai and Shenzhen 300 Index is much lower than the S&P 500 on a global scale, then it looks much more reassuring. The current valuation of CSI 300 has actually reached 99% of the whole history. Looking back at historical data, this valuation has been relatively high, even extremely high, and it should be normal to make adjustments in the future.