The CSI 100 index is composed of the largest 100 stocks in the sample of the Shanghai and Shenzhen 300 Index (together with 200 stocks of the Shanghai and Shenzhen 200 Index, it just constitutes the Shanghai and Shenzhen 300 Index), which was officially released on May 29th, 2006, fully reflecting the overall performance of a group of large-cap companies with the most market influence in the Shanghai and Shenzhen A-share markets. The CSI 100 index, as a constituent stock index spanning the Shanghai and Shenzhen stock markets and taking large-cap blue-chip stocks as samples, undoubtedly has some inherent advantages. It is a "blue chip" among many stock indexes, and it is also a concentration camp for many institutional investors to hold heavy stocks. Take the first quarter announcement of the disclosed fund as an example, 77 of the constituent stocks of the CSI 100 index are heavily held by fund companies. The fund is oriented by value investment, and the selected stocks have fundamental support and long-term investment value, which is very suitable for the development of index funds and ETFs.

If we elaborate on the characteristics of the CSI index, we think that the CSI index has the following important investment characteristics.

First of all, the sample stocks of CSI 100 index cover large listed companies such as banks, steel industry, electric power industry, information technology industry and transportation industry, among which financial real estate accounts for nearly 50%.

Secondly, because the sample stocks of CSI 100 index are the most competitive large-scale listed companies in the whole market, their P/E ratio, P/B ratio and other indicators are far better than the whole market, and their profit stability is also stronger than the whole market.

Thirdly, the sample stocks of CSI 100 index are highly liquid and suitable for indexed investment. In addition, as an important condition for the development of index futures, index options and so on. The index should represent the market and be liquid and investable. In the whole market, the circulating market value of sample stocks of CSI index accounts for about 35%, and the total market value accounts for about 60%, which ensures its representativeness. More specifically, CSI 100 index can fully represent the trend of large-cap stocks because of its sampling principle. Large-cap stocks represent the macro-economic trend of China. Therefore, if the index fund is developed with the CSI 100 index as the target, the purchased investors can share the fruits of China's economic growth.

If the difference between similar stock funds mainly lies in who exceeds the benchmark more, then similar index funds mainly compare their tracking errors, that is, who follows the index closely, but we can't compare the index funds with different targets, because the index funds tracking the SSE 50 index and the SSE 180 index will definitely be different, which mainly comes from the difference between the SSE 50 index and the SSE 180 index. The former is the blue-chip index of the market. As mentioned above, about 80% of the constituent stocks of the CSI 100 index are held by the fund, which has obvious blue-chip characteristics. It should be defined as the index of large listed companies representing the national economy and people's livelihood, which is strictly distinguished from the small and medium-sized index, but there are more listed companies in large and medium-sized manufacturing industries than the SSE 50 index. We believe that its investment value is very high in terms of liquidity, market representativeness and financial indicators.